With the new advancements in the crypto market, it’s becoming more interesting to compare different technologies. Cosmos and Ethereum are representatives of such technologies from different generations.
Obviously, both projects are based on the technology of blockchain. Nevertheless, this might be considered the only similarity between them since both Cosmos and Ethereum have different backgrounds, features, and purposes.
In order to provide an efficient comparison of these projects, we will answer the following questions:
- What are the differences between them?
- Are they competitors?
- Will Cosmos be ever able to beat Ethereum?
Answering these questions, the article will reveal some advantages and disadvantages of Cosmos and Ethereum compared to each other.
What are the Differences Between Them?
First of all, let’s start with the basic comparison, which involves a description of the history of two different blockchain networks. This will help you to better understand the ways in which both platforms achieved their current success. So, the history of the Cosmos blockchain is considered to start in 2016, even though the actual launch took place only in 2019 when the team behind the project introduced the Cosmos hub. Why is 2016 considered the start of this story, then?
The reason is that it was the year when Jae Kwon started his research on the concept of the future third-generation blockchain, meaning he was looking for a way to create an online platform where other blockchains could be developed. As we see today, the concept appeared to be quite successful as now we have several blockchains built on the capabilities of Cosmos.
Ethereum has a longer history than its today’s competitor. In fact, it is considered by many a predecessor of today’s most popular blockchain technology that introduces the use of smart contracts, which appeared in 2015, whilst Ethereum itself was launched in 2013 by Vitalik Buterin.
The introduction of smart contracts was the beginning of a new age since this technology is now being actively used beyond the crypto industry. Smart contracts and platforms based on them boost the efficiency of operations in the banking sector, healthcare, logistics, and many other industries. But these are just the basics. What about the actual differences between blockchains? To begin with, the Cosmos blockchain is the technology of the third generation, meaning it focuses primarily on the speed of transactions, scalability, and decentralization of the platform. Unlike Ethereum, Cosmos blockchain was originally launched with the proof-of-stake consensus mechanism. This type of algorithm is beloved by many blockchain enthusiasts not only because of the improved transaction execution process but also because it’s less energy-consuming.
As for Ethereum, its latest version could be considered outdated compared to the current capabilities of Cosmos. Luckily, a lot of innovations have been introduced over these years, which helped the blockchain to increase the scale of its adoption across different industries. Originally, Ethereum was launched with the proof-of-work consensus mechanism but it appeared to be less effective in modern industry. That’s why blockchain switched to proof-of-stake in 2022 and became the biggest platform applying this model.
Are They Competitors?
Now, when you are aware of the key differences between the two, can you say that they are competitors? Probably, you can’t because these are just projects that represent different concepts and were designed for different purposes. That’s why, if you are looking for alternatives to Ethereum, you should better consider networks that enable the creation of dApps but not the development of new blockchains. Among the most popular Ethereum competitors are Solana, Polkadot, and Cardano.
Even though these are different projects, There are some advantages of Cosmos over Ethereum. The biggest advantage is that the team behind this project has excluded the biggest issues Ethereum is facing at the development stage. The current version of Ethereum cannot compete against Cosmos in terms of scalability and interoperability. That’s why many modern developers may choose it over a well-established platform.
Will Cosmos be ever Able to Beat Ethereum?
To conclude, let’s answer the major question of our today’s review. In general, the Cosmos Ecosystem cannot beat Ethereum because it simply has different functionality. Although there might be new blockchains developed within this ecosystem, they aren’t likely to ever beat Ethereum in terms of capacity and long-term efficiency of operations.