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No one can deny the importance of Ethereum for the crypto/blockchain history, given that the project revolutionized everything about it. It changed the way people looked at both cryptocurrencies and blockchain, by revealing that blockchain can do more than just record transactions. Ethereum represents a massive turn in the industry, and as such, it is likely the second-most important project that was ever created, with Bitcoin itself being the only one in front of it, thanks to the fact that it started the crypto industry.
However, Ethereum’s problems, such as the lack of scalability, low throughput, and alike, have led to massive waiting periods. Those in a hurry to have their transactions processed had no choice but to pay higher fees, which led to the rise in the average fee. As a result, many have started abandoning Ethereum and looking for Ethereum alternatives. While there is no lack of such alternative blockchains, two rise above the rest for their speed, technology, number of projects, features, additional community content, and more.
We are, of course, talking about Cosmos and Avalanche. So, if you wish to find a new chain to switch to, these two are definitely among the top recommendations. As for what they have to offer and how they differ from one another — let’s check it out now.
Cosmos (ATOM) is a project that emerged with the intention to solve some of the hardest problems that the crypto industry has to face. It sees itself as an antidote to slow, unscalable, expensive, and environmentally harmful Proof-of-Work (PoW) protocols, including Bitcoin and, for the time being, Ethereum, among others.
Other than that, Cosmos also aims to simplify blockchain technology and make it less complex and difficult for developers and users alike. It does this with its modular framework, which demystifies dApps. Finally, Cosmos has another goal which is to help different blockchains in the industry in regard to communication. It does this with the Interblockchain Communication protocol, which prevents fragmentation in the industry.
The project’s token, ATOM, was launched in 2017, although Cosmos’ origins can be dated back to 2014, when the network’s core contributor, Tendermint, was originally founded. As for the token itself, it is earned through a hybrid PoS algorithm.
Cosmos’ most valuable feature is its Interblockchain Communication protocol mentioned above, as it aims to establish communication between different chains. Interoperability, which is the capability to send money and information from one chain to the next, is one of the biggest goals of the blockchain industry. With it, Web3 will finally be able to be established, and without it, blockchains would simply continue their isolated existence, with hundreds of ecosystems out there, but each locked in its own little bubble. Cosmos aims to change this, and while it is not the only one — its contribution to the establishment of interoperability is likely going to be very valuable.
On the other side, we have Avalanche (AVAX), which sees itself as the fastest smart contracts platform in the blockchain world, as measured by time-to-finality. This is another major problem of the crypto industry that the project intends to solve by offering blazingly fast, low-cost, and eco-friendly services.
Eco-friendliness has been particularly important in the crypto industry for a long time, especially last year. Crypto mining, as many likely know, is very demanding in terms of computing power and electricity, which makes it leaves a major carbon footprint. This has been something that was harshly criticized for years. However, after Tesla stopped accepting Bitcoin because of this problem about a year ago, in early May 2021 — the issue has received more attention than ever.
As an eco-friendly blockchain, Avalanche definitely has an advantage against numerous competitors. Other than that, the project was launched in 2020 specifically to host dApps, and since then, its ecosystem has grown quite a lot, offering a great Ethereum alternative. The project also has a burning mechanism that reduces its circulating supply, which ensures that the AVAX token’s price will grow in time.
As of April 2022, the project has burned nearly 1.2 million tokens, worth approximately $112 million at the time. Also, its network is fast enough to handle around 4,500 TPS, as opposed to Ethereum’s 15.
As a young blockchain, Avalanche still has a lot of growth and development ahead of it. However, the success it has seen in the last 2 years, and the amount of attention that it has attracted is extremely encouraging for the project’s future.
Avalanche vs. Cosmos
With all that said, what are the similarities between these two projects? What are the differences?
So far, both Cosmos and Avalanche have seen rather high rates of adoption. Cosmos is very easy to use, and Avalanche has excellent technology. Furthermore, both have well-developed decentralized finance, with a TVL that outperforms other Ethereum alternatives, such as Solana, Cardano, and alike.
Of course, they are both dedicated to different things. Avalanche’s focus is on smart contracts, while Cosmos’ is on adoption and achieving interoperability. With that said, some community members have complained that Avalanche failed to cure the problems that it set out to cure, especially when it comes to transaction fees.
Others have also commented that Cosmos seeks to simplify things for people, but it has an abundance of events and projects which can be confusing for newcomers, especially when it comes to airdrops, where not all of them are legit, and users have a hard time discovering which ones are and which ones are not.
However, the situation is not as bad for the two as these criticisms make it seem. The two are still so far ahead in comparison to their other competitors that many would say that the two don’t have any real competitors, other than Ethereum, that is. Ethereum still has a chance to come back from where it is now if it completes the launch of Ethereum 2.0 in time, and if the update ends up being truly good enough to match the expectations and the hype.
Otherwise, it will just be another failure, and Ethereum might actually lose to one of these projects.
Avalanche and Cosmos are two very capable projects that have their own goals, but overall, are becoming the two leading development platform in the crypto industry. They are both technologically superior than most other Ethereum alternatives, and of course, Ethereum itself. They still do not have the brand awareness that Ethereum has, but if they continue to evolve while Ethereum continues to stagnate and lose users and developers because of its flaws, it might someday end up being overtaken.
Compared to one another, it is true that both projects are similar in many ways, but they are also different in terms of their goals and technology. They are not perfect, but they are also both relatively young, and have many more years of development ahead of them to remove their issues and improve their services.
How to Buy Avalanche (AVAX) or Cosmos (ATOM)
Currently, Avalanche (AVAX) and Cosmos (ATOM) are each available for purchase on the following exchanges.
Kraken – Founded in 2011, Kraken is one of the most trusted names in the industry with over 9,000,000 users, and over $207 billion in quarterly trading volume.
The Kraken exchange offers trading access to over 190 countries including Australia, Canada, Europe, and is our most recommend exchange for USA residents. (Excluding New York & Washington state)
Uphold – This is one of the top exchanges for United States & UK residents that offers a wide range of cryptocurrencies. Germany & Netherlands are prohibited.
Uphold Disclaimer: Assets available on Uphold are subject to region. All investments and trading are risky and may result in the loss of capital. Cryptoassets are largely unregulated and are therefore not subject to protection.
Binance – Best for Australia, Canada, Singapore, UK and most of the world. Use Discount Code: EE59L0QP for 10% cashback off all trading fees.
KuCoin – This exchange currently offers cryptocurrency trading of over 300 other popular tokens. It is often the first to offer buying opportunities for new tokens. This exchange currently accepts International & United States residents.
Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.
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