What is Cronos (CRO)? Detailed introduction to the native token of Crypto.com Exchange

What is Cronos (CRO)?

Cronos (CRO) is the cryptocurrency token of a blockchain developed and operated by the Crypto.com cryptocurrency exchange. The Cronos network is designed to be a high-performance blockchain, capable of interacting, supporting decentralized applications (dApps), and intermediary-free applications, often running on multiple Ethereum-based dependent blockchains.

History of Cronos

Cronos is an open-source blockchain and token launched in November 2021 by Crypto.com, one of the world’s largest cryptocurrency exchanges, to meet the growing demand for decentralized applications (dApps) in the decentralized finance (DeFi) and non-fungible token (NFT) space. Most of these dApps primarily run on Ethereum’s dependent branches, a blockchain is needed to connect them and handle the large transaction volume that will arise from this cross-integration.

Cronos steps in to address limitations of dApps and scalability of Ethereum with interactive frameworks and consensus engines that allow multiple blockchains to connect and exchange assets and data with high throughput without intermediaries. Cronos is said to be capable of processing over 10,000 transactions per second (TPS), significantly higher than Ethereum’s TPS, which averages around 13.

In addition to the ability to connect multiple dApps at the same time, Cronos allows developers to create and store dApps from different blockchains. The interaction standards of Cronos allow the network to run smart contracts from multiple blockchains similar to Ethereum with very little or no modification. Smart contracts are self-executing programs that can be used to automate various actions on a blockchain and perform tasks beyond just transferring cryptocurrencies.

Cronos compared to other popular blockchains

The selected validators are chosen through invitations, with developers occasionally opening time slots to accept applications. Cronos’s PoA uses 24 carefully selected validators to verify transactions and open new blocks, giving the consensus mechanism ‘authority’ because the selected validators have been checked and trusted.

This creates a clear contrast with other chains that use anonymous verification systems. Cronos is therefore a combination of a public and private blockchain, a private decentralized blockchain open to the public.

The application of Cronos

Decentralized Finance (DeFi): A DeFi application is a software application built on a blockchain network that allows users to access traditional financial services without relying on intermediaries. Imagine a bank that operates on code instead of humans, where you interact directly with the system through your digital wallet.

Non-fungible Tokens (NFTs): An NFT platform is an online marketplace where users can buy and sell NFTs. NFTs are digital ownership certificates that can be minted through computer code to represent a specific digital asset, which can be anything from artworks, music, content and collectibles, to virtual in-game items and real-world assets like real estate. Unlike fungible tokens such as cryptocurrencies, which are interchangeable and indistinguishable, each NFT is unique.

Metaverse Platform and Applications: Metaverse is the convergence of multiple technologies and trends to create a continuous, vibrant, and interconnected virtual world using gaming, social networks, virtual reality (VR), and augmented reality (AR). Think of it as a combination of different aspects of the Internet.

What is the CRO Token?

Cronos (CRO) was initially designed as an ERC-20 token but became a native token after Crypto.com launched its own blockchains.

Currently, it exists on Ethereum networks (ERC-20 CRO), Crypto.org (CRO), and Cronos (CRC-20 CRO) and complies with different token standards.

CRO is also the platform of the Crypto.com ecosystem. In addition to staking and network rewards, users can use their CRO to unlock DeFi features, receive higher cashback and discounts, and qualify for exclusive rewards.

The role of the CRO token in Cronos

Similar to the ether token (ETH) for the Ethereum blockchain, the CRO token plays an important role in the Cronos blockchain ecosystem as a native utility token governing various aspects of its functionality. CRO is used for transactions, staking, and governance, incentivizing users to hold and participate in the network. The demand for CRO as a utility token promotes its liquidity and contributes to the stability of the Cronos ecosystem, creating a positive feedback loop.

CRO is the primary currency used to pay for transaction fees on the Cronos network and enable seamless asset transfers between Cronos dApps without the need to convert to multiple different tokens. Any interaction with the Cronos blockchain requires users to spend a small amount of CRO to promote responsible network usage and prevent spam.

CRO holders can participate in staking, where they lock their tokens for a certain period of time to support the security, stability, and decentralization of the network, preventing the blockchain from threats. In return, they earn rewards in the form of additional CRO tokens and the right to vote on governance decisions regarding the future direction of the blockchain, including proposals for upgrades, fee structures, and new integrations with other blockchains.

Cronos does not use the consensus mechanism like Bitcoin’s Proof-of-Work (PoW) model, which requires competing and reaching consensus on the validity of transactions by solving cryptographic puzzles. Cronos’ Proof-of-Authority (PoA) consensus mechanism relies on trusted validators to process and achieve consensus on transactions and the state of the blockchain. It also differs from Ethereum’s Proof-of-Stake (PoS) model, which randomly selects staking validators.

Founder of Cronos

Crypto.com - formerly known as Monaco Technologies GmbH - was founded by Bobby Bao, Gary Or, Kris Marszalek and Rafael Melo shortly after the sudden shutdown of the online market Ensogo in 2016.

Kris Marszalek (CEO) was previously the CEO of Ensogo and co-founder of the BeeCrazy e-commerce business.

Rafael Melo (CFO) also worked for Ensogo as CFO and has experience in mobile payment solutions.

Bobby Bao (Head of Crypto.com Capital) has experience in investment banking and was formerly Head of Business Development at Ensogo.

Gary Or (CTO) does not work for Ensogo but was once the Platform Architect of BeeCrazy and the founder of the Particle B startup incubator.

Crypto.com is currently owned and operated by a company based in Malta, Foris DAX MT Limited, but CRO Protocol Labs, based in the Cayman Islands, is the unit developing both the Crypto.org Chain and Cronos Chain.

Conclusion

Cronos is a fast, interactive blockchain, with its own native CRO token, aiming to become a user-friendly hub for DeFi, NFTs, metaverse in a broader dApp environment.