Blockchains such as Bitcoin and Ethereum were developed to work as independent systems. But as developers look towards the emergence of the third-generation Internet (Web3), they are increasingly looking for scalability and interoperability between chains.
The Cosmos and Polkadot protocols aim to address this need by providing ways to connect blockchains. Both networks enable developers to connect multiple other blockchains to provide the infrastructure for decentralised applications (dApps), but they take different approaches to do this.
To gain exposure to these projects, one could choose toinvest in the Cosmos cryptocurrency coin (ATOM) or the Polkadot token (DOT).
What are Cosmos and Polkadot? How do they work and which coin offers the best potential returns for investors? In this article, we compare Cosmos and Polkadot and the performance of the two coins.
Polkadot offers parachains for interoperability
Polkadot (DOT) is the main project of the Switzerland-based Web3 Foundation. Founded to help facilitate the decentralised web, Polkadot was created by Ethereum co-founder Gavin Wood and launched in May 2020.
Polkadot is built to connect private and public blockchain networks and oracles. Independent blockchains can transfer information and transactions between them via the Polkadot relay chain. The Polkadot network runs a sharding model based on parallel chains known as parachains, native blockchains that use the network’s consensus mechanism and benefit from pooled security. The network also enables bridges to connect external blockchains such as Bitcoin and Ethereum.
Polkadot operates a hybrid consensus mechanism – Ghost-based Recursive Ancestor Deriving Prefix Agreement (GRANDPA) and Blind Assignment for Blockchain Extension (BABE). This allows for blocks to be generated faster while the mechanism to finalise blocks runs in a separate process to reduce the risk of slowing or stalling transaction processing.
“While other blockchain protocols only allow developers to build dApps using smart contracts, Polkadot gives them full control over the underlying blockchain itself. This flexibility gives parachain developers the maximum freedom to optimise for any use case – which means better and more secure dApps and services for all,” according to the Polkadot website.
Polkadot launched auctions for parachain slots in December 2021:
“Parachains connect to Polkadot by leasing an open slot on the Relay Chain via auction, which involves locking up a bond of DOT for the duration of the lease. DOT holders can help their favourite parachains win an auction, potentially earning a reward in return, by contributing to a crowdloan and temporarily locking their own DOT for the parachain’s bond.”
Cosmos takes hub approach to interoperability
Cosmos (ATOM) bills itself as the “Internet of blockchains”, creating an expanding ecosystem of interconnected decentralised apps and services. An initial token sale raised $17m in April 2017 to develop the Cosmos mainnet, which launched in March 2019.
The Cosmos network is a decentralised system of independent, interoperable parallel blockchains connected by Inter-Blockchain Communication (IBC) protocol and bridges to external blockchains like Ethereum and Bitcoin.
The Cosmos Hub, the first blockchain that launched on the Cosmos network, was created to provide services such as security and decentralised exchange to the blockchains that connect to the network.
Cosmos Hub operates with three separate layers: application, consensus and networking. These layers are designed to enable seamless communication between the blockchains in the ecosystem.
Cosmos uses the Tendermint Byzantine Fault Tolerance (BFT) consensus algorithm. This enables the Tendermint IBC protocol to connect Layer 1 blockchains built on the network. This provides the infrastructure for multiple blockchains to run Proof of Stake (PoS) consensus in sync and offers common functionality. The Cosmos Software Development Kit (SDK) offers developers a set of pre-built blockchain features, such as token minting, so that they can create modular blockchains.
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With this modular approach, Cosmos aims to provide scaling for Layer 2 protocols, whereby an app that works on one blockchain on the Cosmos network can also interact with all the other chains connected to the network.
The ATOM token is used for processing network transactions. Stakers receive rewards for securing Cosmos Hub services.
Cosmos vs Polkadot: how does Polkadot differ from Cosmos?
As we’ve seen, the Cosmos and Polkadot protocols both aim to create interoperable networks of blockchains to enable scaling on the decentralised Web3. The Polkadot Relay Chain transfers messages between parachains in a similar way to how the Cosmos Hub transfers messages between zones.
By providing interoperability, Polkadot and Cosmos are both considered to be Layer 0 networks. Layer 0 networks enable Layer 1 blockchains such as Ethereum and Bitcoin to run on the same network, while Layer 2 protocols offer enhancements such as faster processing speeds and scalability.
So, how do they differ? When comparing Cosmos vs Polkadot, which is better?
One of the main differences between Cosmos and Polkadot is that Polkadot offers unified security across the network. Every Polkadot parachain is supported by the same pooled security as the Polkadot Relay Chain, whereas blockchains connected to the Cosmos Hub do not have uniform security.
Polkadot uses a sharding model for its parachains, so changes in the state of one parachain affects all the others. Cosmos uses a hub model, in which multiple hubs are connected to chains in zones. In addition, the Polkadot network enables the transfer of tokens and data between blockchains, while Cosmos is focused on transferring assets among blockchains.
By comparing Cosmos versus Polkadot, it’s clear that while both blockchain protocols aim to facilitate interoperability between chains and enable easy scalability, they take different approaches and operate in different ways. So, how have their native cryptocurrencies performed as investments?
Polkadot token sheds more value year to date
In terms of coin price performance for ATOM vs Polkadot, DOT has skyrocketed by 575% since August 2020, while ATOM has soared by 309% since March 2019.
Both ATOM and DOT followed the broader cryptocurrency markets higher in early 2021, rallying rapidly in February and spiking to fresh highs in April and May before selling off as the markets crashed. Both coins bottomed out in July and then rallied over the summer. ATOM/USD hit its peak of $44.70 on 20 September 2021, while DOT/USD went on to make further gains and reached its all-time high price of $55 on 4 November 2021.
The DOT price gained more than 187% in 2021, ending the year at $26.72, while the ATOM price made most of its gains last year, soaring by 400% to $32.47. So far in 2022, ATOM has shed more than 18% of its value, hitting $26.35 on 13 February, while DOT has fallen by 29.5% to $18.83.
When looking at cryptocurrency prices, you should keep in mind that past performance does not indicate how a coin will perform in the future. Prices depend on developments in the rollout of a blockchain network and its adoption, as well as the broader trends on the cryptocurrency markets. Prices have fallen year to date as the markets struggle to rebound from heavy losses in recent months.
You should always do your own research to decide whether a cryptocurrency token is a suitable fit for your investment portfolio.
FAQs
Is Polkadot or Cosmos better?
You should do your own research to take an informed view of blockchain networks like Polkadot and Cosmos as well as their native cryptocurrencies. Your research may lead you to decide whether one is a better project, depending on your personal preferences and risk tolerance.
What’s the difference between Polkadot and Cosmos?
Polkadot and Cosmos both aim to enable interoperability between blockchains so that developers can build dApps that run seamlessly between networks. But they differ in their approaches, in terms of their structure and the way that they operate.
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While Cosmos offers easy interoperability between chains, Polkadot's sharded architecture and shared security model provide scalability and security. In terms of governance, Cosmos uses on-chain governance while Polkadot has a hybrid system that combines on-chain and off-chain mechanisms.
Crypto analysts believe that Cosmos value can actually reach $1000. For instance, according to Crypto Rating Cosmos can actually reach a value of $1050 in ten years. DigitalCoin, on the other hand, estimates that the highest value that Cosmos might have in this decade is $875, by 2030.
In 2025, Polkadot prices could increase if more investors are drawn to the idea. We estimate that by 2025 the most a Polkadot will cost is $20.81. DOT Tokens can be purchased for as little as $15.74. The Polkadot could outperform our price prediction in 2025 if the market becomes bullish.
Based on our ATOM cryptocurrency price prediction, it will be a really great investment. Crypto analysts suggest that the Cosmos price could be highly volatile yet surge in the year 2025.
Cardano and Polkadot both show potential for blockchain integration thanks to their low transaction fees and consensus algorithms. Polkadot is ahead of Cardano in terms of development, with Cardano trying to “catch up” by enabling users to pay transaction fees in the currency they send.
Yes, it is possible for Cosmos (ATOM) to reach and cross the $100 mark. However, it would first need to move higher than its all-time high of $45. Additionally, we expect ATOM to exceed the $200 mark by the end of 2030.
The simple answer to this is, Yes.It is highly likely that Cosmos token prices will eventually reach rise above $500 in the next few years. In fact, some highly reputable crypto experts and technical analysts believe that Cosmos will reach $500 within the next few years.
Having analyzed Polkadot prices, cryptocurrency experts expect that the DOT rate might reach a maximum of $$5.98 in December 2023. It might, however, drop to $$5. For December 2023, the forecasted average of Polkadot is nearly $$5.49.
Polkadot Price Prediction: Will Polkadot Reach $10000? Considering the price of Polkadot crypto rises 20% a year from now, then in the next 52 years, we may see DOT at $10,000.
ATOM has substantial long-term potential and is well-positioned to rise higher in the coming years. Its multiple use-cases and developments indicate that Cosmos could be a millionaire-maker coin for investors.
According to the technical analysis of Cosmos prices expected in 2023, the minimum cost of Cosmos will be $$10.03. The maximum level that the ATOM price can reach is $$10.01. The average trading price is expected around $$9.98.
Cosmos has amazing potential over the next few years as acceptance for cryptocurrency increases. Our market forecast indicates that by 2030, ATOM could reach a new all-time high of $103.57.
There is some hope for Polkadot (DOT) investors who have been burnt by its 2022 performance. Many crypto experts are predicting it may struggle to rise and cross the $10 barrier this year with a 67% growth, but this is the best-case scenario.
Scalability. Polkadot is a high-performance blockchain that can handle over 1000 transactions per second. In comparison, Ethereum supports 13-30 transactions per second in its current state. It's also far cheaper to send DOT compared to ETH at the moment.
In contrast to Solana, which charges an absurdly cheap transaction cost of $0.00015 for every transaction, Cardano sets an average price of $0.25. These numbers show that trading on Cardano is 800 times more costly than trading on Solana.
do cosmos need staking? Yes, it's important to stake cosmos, particularly if you are growing a tall variety, and there are a couple of simple ways to do this.
Real yields are higher than usual on Cosmos since early 2021. The high yield aims to incentivize ATOM stakers, so the staking ratio increases from 63% to 67%. Once the staking ratio increases back to 67%, rates will trend back down.
Ethereum requires other solutions like sidechains and layer-2 scaling solutions to be able to match its demand. The base Cosmos network is scalable enough to handle all of its traffic and more. Thus, in terms of speed and scalability, Cosmos wins.
While Ethereum (ETH) is more established and widely used for smart contract development, Cosmos (ATOM) has a more flexible and scalable architecture that allows for easy interoperability with other blockchain platforms.
The Cosmos (ATOM) price failed to sustain its breakout, signaling that lower prices could follow soon. ATOM is the native token of the Cosmos ecosystem, which aims to function as an internet of blockchains.
Yet, Polkadot is one of the most secure and innovative networks in the crypto space today. That is why many analysts believe it's only a matter of time before the Polkadot price prediction reaches $1,000. And as I mentioned above, projections suggest this could happen before 2030.
Having multiple lanes to complete transactions leaves less chance for network overload. Additionally, Polkadot created protocols that allow its network to interact with other blockchains.
To reach $1000, Polkadot crypto needs to grow by 174 times of its current market price. Considering the price of Polkadot crypto rises 25% every year from now, it will take 24 years to reach $1000.
Just like Bitcoin and many other coins and tokens, Polkadot hit an all time high of $55.00 in November 2021. Overall, this token is great at following the market and responds well to the hype in the industry and positive market sentiment.
According to our analysis in the short term, Polkadot price prediction for August 2023 shows the average price of DOT at $7.57 and the highest possible price for August 2023 would be $8.10.
The Three Cryptocurrencies To Make You A Crypto Millionaire: Bitcoin, Ethereum And Big Eyes Coin. In recent years, cryptocurrencies have gained popularity as more investors have turned to them to diversify their portfolios.
Unlike Fiat currency, ATOM is not inflationary. Its value is also expected to grow at a faster rate than most conventional investments, and these make it a good store of value for any investor.
Investors should note there is currently no limit on the supply of new ATOM that can be created. Rather, Cosmos adjusts the amount of tokens created based on the number of ATOM being staked.
What is Cosmos's price prediction today? Based on our Cosmos price prediction, the price of Cosmos will increase by 2.05% and reach $ 10.80 by May 31, 2023.
How Long Do Cosmos Blooms Last? Each cosmos flower will bloom for about 4 to 7 days. In dry weather the blooms will last longer, and in a summer rainstorm the flower bloom will not last as many days. While each flower is relatively short lived, the cosmos plant produces hundreds and hundreds of blooms.
On April 6, 2017, Cosmos held its initial coin offering, selling approximately $17 million worth of the platform's ATOM cryptocurrency. The ICO raised $16.8 million in funding.
Software developers Jae Kwon and Ethan Buchman co-founded the Cosmos network in 2014 while also creating Tendermint, the consensus algorithm that would power Cosmos. Kwon and Buchman authored the Cosmos white paper in 2016 and later released its software in 2019.
Pikamoon (PIKA) – A play-to-earn Pokemon-inspired blockchain project. The 10,000+ whitelist signups and over 15,000 social media followers indicate it will be one of the next cryptocurrencies to explode in 2023.
Chainlink is a decentralized data oracle while Polkadot is a sharded multichain protocol. Both projects aim to solve the problem of retrieving accurate and reliable off-chain information. Chainlink enables smart contracts to access real-world data through decentralized oracles.
Polkadot has overtaken Cardano and Ethereum and is now the leading blockchain by developer activity, according to Santiment, having overtaken Ethereum and Cardano.
No consumer protection. Tax on profits may apply. Why is Polkadot so cheap? At the moment, Polkadot (DOT) can be said to be rather cheap because it is a relatively new cryptocurrency - a little more than a year old, it has no real value, and its demand hasn't been strong enough to incite a material price breakout.
In terms of transaction speeds, Solana is much further ahead of Polkadot. While Polkadot can reach around 1,000 transactions per second (TPS), Solana has a maximum speed of 65,000 TPS, making it one of the fastest blockchains on the market.
Popularity and users. When compared with Solana, Ethereum is the more popular cryptocurrency by a fairly wide margin. Ethereum's market cap is about $210 billion, which is substantially higher than Solana's market cap of $12 billion.
Solana boasts faster transaction speeds and higher liquidity in DeFi, but concerns remain over its centralization and safety. Avalanche, on the other hand, has a more resilient network and a promising NFT marketplace, but its staking program is more stringent.
Cosmos has amazing potential over the next few years as acceptance for cryptocurrency increases. Our market forecast indicates that by 2030, ATOM could reach a new all-time high of $103.49.
According to our analysis in the short term, Cosmos Hub price prediction for July 2023 shows the average price of ATOM at $17.07 and the highest possible price for July 2023 would be $18.27.
Crypto analysts believe that Cosmos value can actually reach $1000. For instance, according to Crypto Rating Cosmos can actually reach a value of $1050 in ten years. DigitalCoin, on the other hand, estimates that the highest value that Cosmos might have in this decade is $875, by 2030.
Cosmos (ATOM) is one of the Ethereum (ETH) competitors with one of the best market capitalizations. However, it has failed to draw much attention to itself and is losing the popularity contest and capital to other so-called “Ethereum killer” networks such as Cardano (ADA), Solana (SOL) and Tron (TRX).
Conclusion – Which Crypto has the Most Potential? All things considered, AiDoge is the crypto with the highest potential in 2023. Combining the power of artificial intelligence with the popularity of memes, AiDoge offers a fantastic utility that can build a large community.
Cryptocurrency experts are ready to announce their forecast for the DOT price in June 2023. The minimum trading cost might be $4.69, while the maximum might reach $5.68 during this month. On average, it is expected that the value of Polkadot might be around $5.19.
The Cosmos (ATOM) price failed to sustain its breakout, signaling that lower prices could follow soon. ATOM is the native token of the Cosmos ecosystem, which aims to function as an internet of blockchains.
The live Cosmos price today is $10.21 USD with a 24-hour trading volume of $76,798,815 USD. We update our ATOM to USD price in real-time. Cosmos is up 2.05% in the last 24 hours. The current CoinMarketCap ranking is #19, with a live market cap of $3,540,491,520 USD.
Introduction: My name is Errol Quitzon, I am a fair, cute, fancy, clean, attractive, sparkling, kind person who loves writing and wants to share my knowledge and understanding with you.
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