When it comes to interoperable blockchain projects, the two frontrunners are Cosmos and Avalanche. Both the projects are spearheading the initiative to make it simple for developers to develop custom blockchains. Further, both projects are focused on enabling interaction between different blockchains. So, here we give you a brief account of Avalanche as well as Cosmos:
Cosmos Overview (ATOM)
Cosmos is a project that makes it very simple for developers to build application-specific blockchains called Zones. Developers can use the easy Cosmos SDK to build blockchains. The blockchains so built can interact with each other using the revolutionary IBC or Inter-Blockchain Communication protocol. The vision of the Cosmos project is to ultimately become an ‘Internet of Blockchains’ where there are millions of sovereign blockchains supporting millions of blockchain apps.
Avalanche Overview (AVAX)
Avalanche is an open, programmable smart contracts platform for building decentralised applications of DApps. It is a heterogeneous interoperable network of blockchains built on the Avalanche Consensus protocol. Avalanche also enables developers to build application-specific blockchains. As a platform for building DApps, developers have adopted Avalanche primarily for building applications for financial services.
Cosmos vs Avalanche: a comparison
1. Interoperability – Cosmos enables developers to build application-specific blockchains called Zones. These Zones connect to each other via Hubs. Cosmos also enables these blockchains to connect with external blockchains such as Ethereum via what are called as peg zones. Avalanche uses subnets to execute interoperability. All blockchains within a subnet are interoperable with each other. Further, subnets can also interact amongst themselves.
2. Transactions per second – Cosmos can process 10000 transactions per second. On the other hand, Avalanche can process 4500 transactions per second, with the potential to process another 20000 transactions per second. Thus, on paper, Avalanche is a speedier blockchain than Cosmos.
3. Staking rewards – When it comes to earning passive income, one can earn an interest rate of 14.69% by staking ATOM coins. On the other hand, one can earn 9.03% interest by staking AVAX coins.
4. Decentralisation – The Avalanche project is superior to the Cosmos project when it comes to decentralisation. In the case of Cosmos, there is a limit of 200 validations for validating transactions. If there are more validators, then there is a loss in transactions per second or performance of the network. However, the Avalanche project enables tens of thousands of validators to participate in validating.
5. Adoption – As the frontrunners in the interoperability blockchain domain, both Cosmos and Avalanche have inspired dozens of decentralised applications. Cosmos has over 260 apps and services in its network, including Binance Chain, Terra, Crypto.org and Cosmos Hub, with over $155 billion of digital assets. Avalanche, in the meantime has over 300 projects in its network, with use cases spanning decentralised finance (DeFi), institutions to digital collectables such as NFTs or non-fungible tokens.
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