Table of Contents
Cronos is a blockchain that is compatible with the Ethereum Virtual Machine and also supports IBC networks based on the Cosmos SDK. This allows it to easily integrate with Ethereum and Cosmos-based ecosystems, including the ability to use Ethereum smart contracts and dApps.
The Cronos network launched on November 8th, 2021, and runs alongside the Crypto.org blockchain, which powers the Pay feature for Crypto.com.
Key Takeaways
- Cronos was developed by Crypto.com with the aim of promoting the wider adoption of cryptocurrencies.
- “Crypto.com” was originally known as “Monaco,” but the company underwent a rebranding in 2018.
- CRO is the native token for both the Cronos and Crypto.org blockchains.
- Cronos is an EVM-compatible chain – meaning that it can support dapps that are created with the Ethereum Virtual Machine.
Crypto.com, the company behind both blockchains, has been active in the cryptocurrency space since its launch in June 2016 and is headquartered in Switzerland. It was originally known as Monaco Technologies GmbH and rebranded to Crypto.com, with its platform token, Monaco Coin, being renamed CRO (Crypto.com Coin). The launch of the Crypto.org blockchain resulted in the renaming of the token to Cronos, but the ticker symbol, CRO, was retained.
How does Cronos work?
Cronos is a blockchain that is built on the Ethermint framework, which is a scalable, high-throughput blockchain platform that is fully compatible with Ethereum. This means that it can support apps that are created for the Ethereum Virtual Machine and other derivative frameworks, unlike the Crypto.org blockchain.
The Ethermint framework allows the Cronos chain to access all of the features of Ethereum while also taking advantage of the scalability and lower costs provided by the Cosmos SDK, which is based on the Tendermint consensus engine. Some of the key features of Ethermint include interoperability within the IBC ecosystem, support for the Ethereum Virtual Machine, fast transaction processing speeds, and the ability to utilize the Ethereum-based geth codebase for easier code maintenance.
The Cronos network uses the Tendermint Core’s Proof of Stake consensus algorithm to validate transactions and achieve consensus. In this model, validators stake a portion of their assets in a smart contract as a way to incentivize good behavior.
Proof of Stake is more scalable than Proof of Work, which is used by several other prominent networks such as Bitcoin, Litecoin, and Bitcoin Cash. By building on the Ethermint framework, Cronos combines the benefits of the Ethereum and Cosmos ecosystems, including the ability to run feature-rich dApps compatible with the Ethereum Virtual Machine and the ability to interact with other networks based on the Cosmos SDK.
CRO Token
The Cronos (CRO) token was originally called the “Crypto.com Coin,” but the name was changed to reflect the decentralized nature of the coin and the goal of building a diverse and extensive network. The total supply of CRO is 30 billion after Crypto.com decided to burn 70 billion in February 2021. The remaining tokens, which were created on the Ethereum platform using the ERC-20 standards, were transferred to the Crypto.org Chain, but their utility remains unchanged. CRO can be used in various ways within the Crypto.com ecosystem and on the Cronos blockchain, including:
- Staking: CRO tokens are required for node operators, delegators, and governance proposers to carry out their activities. Staking can be done directly on the Cronos platform using supported self-hosted wallets or through a staking service such as the one offered by the Crypto.com exchange.
- Value transfer: CRO can is used for fees on both networks – gas fees for the Cronos Chain and trading fees for the Crypto.com platform. It is also used for payments across Crypto.com products, such as the Crypto Pay app.
What makes Cronos unique?
The CRO blockchain is primarily designed to provide utility to users of Crypto.com’s payment, trading, and financial services solutions. CRO coin holders can stake their coins on the Crypto.com Chain to become validators and earn fees for processing transactions on the network, or they can use CRO coins to pay transaction fees on the Cronos Chain.
In the Crypto.com Pay app, users can earn cashback of up to 20% by paying merchants in CRO and up to 10% by purchasing gift cards and making peer-to-peer transfers to other users. On the Crypto.com App, users can earn token rewards for certain listings by staking CRO.
Additionally, CRO holders can earn annual interest of up to 10-12% by staking their coins on the Crypto.com Exchange app or Crypto.com’s metal Visa Card. Overall, CRO is meant to support Crypto.com’s efforts to increase the adoption of cryptocurrency globally and to provide users with more control over their money, data, and identities.
Cronos FAQ
Who Are the Founders of Cronos (CRO)?
Cronos was developed by Crypto.com, a company founded in June 2016 by Kris Marszalek, Rafael Melo, Gary Or, and Bobby Bao, with the goal of making cryptocurrency more widely available.
Kris Marszalek, who has a background in consumer electronics design and manufacturing, location-based mobile app development, and e-commerce, is the founder and former CEO of Crypto.com.
Rafael Melo, who holds a bachelor’s degree in engineering, has worked in finance for over 15 years and helped secure funding for the Ensogo social commerce website.
Gary Or, a software engineer with a bachelor’s degree in engineering and computer science, has experience as a platform architect at Ensogo and Foris companies.
All of the co-founders of Crypto.com have contributed to the development and growth of the company, which aims to “put cryptocurrency in every wallet.”
How is Cronos (CRO) related to the Crypto.org Chain and Crypto.com?
Cronos and the Crypto.org Chain have several key differences, but they also have some similarities and are seamlessly integrated with each other. For example, users can easily transfer CRO between the two chains using the Cronos Decentralized Bridge, which utilizes Inter Blockchain Communication (IBC). Additionally, both chains support different types of smart contracts and programming languages.
Cronos is EVM-compatible and supports the execution of Solidity smart contracts, while the Crypto.org Chain will eventually support CosmWasm smart contracts targeting Go and Rust developers.
The Crypto.com ecosystem of products, such as the App, Exchange, and DeFi Wallet, are seamlessly integrated with Cronos and support CRO. Users can easily bridge assets between Crypto.com and Cronos, and the DeFi Wallet will soon support many more assets available on Cronos.
How Is Cronos (CRO) Different From Ethereum (ETH)?
Ethereum and Crypto.com both have native tokens that support various functions within their respective ecosystems, but there are several key differences between the two.
First, Crypto.com is a company that developed its own closed-source blockchain for the purpose of providing a range of decentralized financial services through a single platform, while Ethereum is an open-source platform that anyone can build on and view the programming for.
Second, Crypto.com is a company that centralizes financial services, while Ethereum is fully decentralized.
Third, Crypto.com offers a range of convenient financial services for cryptocurrency users, while Ethereum is a decentralized global virtual machine.
Despite these differences, both Ethereum and Crypto.com have their own unique strengths and offer different value propositions to users.
How do I buy Cronos (CRO)?
- First, you will need to set up a cryptocurrency wallet that supports the purchase and storage of CRO.
- Once you have chosen and set up your wallet, you will need to link a payment method. This can be a bank account, debit card, or credit card.
- After your payment method is linked, you can search for CRO within the platform and select it as the coin you would like to purchase.
- Enter the amount of CRO you want to buy and review the details of the transaction, including the Cronos price and any applicable fees.
- Confirm the transaction and wait for it to be processed. It may take a few minutes for the CRO to be added to your wallet.
- Once the transaction is complete, the currency will be stored in your wallet and you can track the CRO price value over time or choose to sell or trade it for other cryptocurrencies.