Crypto.com Blockchain Structure • Benzinga

0

Home to a multitude of investment and cryptocurrency products, most users know Crypto.com for its cryptocurrency-backed exchange, wallet, and credit card services. However, many users may not be aware that Crypto.com has also launched its own blockchain, Cronos, powered by the CRO asset.

CRO is the native coin of Cronos, an open-source decentralized blockchain developed to make faster and cheaper payments.

If you want to learn more about the technology behind CRO and its potential future role as a payment system, our beginner’s guide is a great place to start. We’ll walk you through the basics of blockchain technology and how the new CRO platform will aim to solve some of the biggest problems currently facing the Bitcoin blockchain structure. We will also teach you a bit more about how you can add CRO to your cryptocurrency investment portfolio.

What is CRO?

CRO is the native token of the Cronos blockchain. Although CRO was originally developed as an ERC-20 token (meaning it was built using the Ethereum network), Crypto.com Chain recently announced the launch of its own public and open-source blockchain . If you previously owned the ERC-20 variant of CRO, Crypto.com Chain provides a custom solution Token Migration Web Tool which allows you to transfer your current ERC-20 tokens to the new channel.

Crypto.com Coin (CRO) is a native token that powers the full suite of services offered by Crypto.com.

CRO powers the Cronos chain, which allows you to use cryptocurrency to pay more online merchants than current options. CRO acts as an intermediary currency, allowing you to convert your cryptocurrencies into fiat counterparties at a very low cost. Cronos aims to provide a more affordable and accessible way to pay for online purchases using cryptocurrencies while offering solutions to traditional problems associated with scaling Bitcoin.

Scaling is a major issue preventing wider integration of blockchain technology. “Scalability” refers to the ability of a blockchain to cope with a large influx of transactions occurring simultaneously on the blockchain. If a blockchain is not optimized for scalability, users who initiate transactions over the blockchain threshold will remain in a queue. Those who have paid the highest amount in commission retain the first place in the queue.

Cronos aims to provide a solution to the scalability problem by offering immediate payment confirmations while supporting scalability based on an increasing number of transactions. Crypto.com Chain’s target confirmation time is less than 1 second and the platform promises to support over 50,000 transactions per second when the testnet implementation is complete.

crypto.com




Benefits of CRO

The Cronos chain and its token, CRO, aim to solve a number of problems traditionally associated with widespread blockchain implementation, including:

  • Instant transactions and reduced fees: The primary goal of CRO is to support a faster payment network by introducing scaling solutions that increase as transaction load increases. In its final form, Cronos Chain plans to support around 50,000 transactions per second, many more transactions than is comfortably possible on the Bitcoin blockchain.
  • Enhanced support for merchants: The developers behind Crypto.com have taken steps to make it easier to integrate the CRO blockchain. The company recently released its dedicated merchant software development kit (SDK) for integrating CRO blockchain solutions with a lower bar of prior technical knowledge.
  • Crypto.com Chain uses decentralized technology: Like many emerging decentralized finance (DiFi) solutions, CRO avoids using a single point of failure by broadcasting confirmations across a network of computers when verifying transactions. This makes CRO much harder to target in hacks and theft attempts compared to payment systems that rely on a central third party.

Definition and Functions of Blockchain Structure

Although understanding blockchain technology may seem impossible at first glance, the truth is that all blockchains work in relatively similar and simple ways.

At its most basic level, a blockchain is a shared, permanent database. For example, when you send Bitcoins from one wallet address to another, a record of your transaction is permanently stored on the blockchain. Transactions are aggregated into blocks every 10 minutes, then secured and added to the chain by miners. Every user has access to public blockchain records, and the record is necessary to avoid “double spending” (sending the same asset to multiple wallets before a transaction can be cleared).

Blockchain technology offers users a more efficient and effective way to transmit value and information, especially when used in conjunction with self-executing smart contracts.

History of CRO (crypto.com)

Founded in 2016, Crypto.com is a Hong Kong-based project that aims to introduce a wide range of blockchain technology use cases. The platform is best known for its suite of handy cryptocurrency apps, which range from trading to creating crypto loans. Today, Crypto.com serves over 90 countries and maintains a global user base of over 10 million customers, investors and merchants.

Security and Node Types

Crypto.com Chain uses 2 types of nodes to keep users safe and secure.

  • Board Nodes: Also known as “validating nodes”, advising nodes are used for settling transactions, reading important data from the network, and verifying all transactions made on the network. The chain board nodes operate on Tendermint’s BFT consensus mechanism and are generally responsible for the governance of the platform.
  • Community Nodes: Community nodes (also called “full nodes”) can be used by any member of the chain. Community nodes can be used to settle own transactions, read data from the network, or verify send and receive transactions.

Participants on Crypto.com

Although open to public consensus, the Cronos channel uses 4 distinct roles for participants on its network:

  • Customers: Chain customers can use the network to make payments using cryptocurrencies. The chain’s blockchain structure allows for anonymous transactions.
  • Merchants: The role of on-chain merchants is to accept payments in cryptocurrencies for the services and products they provide. The requirements to become a chain trader are flexible in terms of base fiat currency and accepted cryptocurrencies.
  • Crypto Client Acquirers: Client acquirers handle the network’s crypto payments and are responsible for facilitating on-chain transactions. To qualify as an acquirer, a user must have a set amount of CRO locked up as collateral.
  • Merchant Acquirers: Similar to customer acquirers, merchant acquirers handle transactions initiated on the merchant side of the network. Merchant acquirers must also meet CRO minimums in the form of collateral.

CRO tokens

Acting as a native token for the Cronos chain, CRO is primarily used as an intermediary currency settlement tool. All users on the chain will need to fund block transaction fees using CRO, and tokens can be earned as rewards for processing and verifying transactions on the network.

Continued research on CRO

Performing your own due diligence is a must before doing any kind of cryptocurrency or traditional investing. When looking for a CRO, make sure you are reading about the blockchain project and not about Contract Research Organizations, which also tend to be abbreviated as “CRO”. As with any crypto investment, you should also set a strict budget when making your first purchase.

Frequently Asked Questions

How to get a CRO on Crypto.com?

1

How to get a CRO on Crypto.com?

demand

Sarah Horvat

1

You can get CRO from several sources on Crypto.com. You can buy the tokens using the same method you use to buy any other cryptocurrency, you can earn rewards when you stake your tokens or you can receive cash back in CRO when you use CRO to pay fees when of negotiation.

Answer link

responded

Benzinga

Is CRO a good investment?

1

Is CRO a good investment?

demand

Sarah Horvat

1

If you are interested in the technology behind CRO, you can add this token to your wallet. Be sure to do plenty of research before investing.

Answer link

responded

Benzinga

Is Crypto.com under the IRS?

1

Is Crypto.com under the IRS?

demand

Sarah Horvat

1

Yes. Any CRO you earn through Crypto.com will be reported to the IRS, along with a record of any realized earnings you have seen on your cryptocurrency investments. Fortunately, Crypto.com now offers its own tax customer to make crypto tax reporting a bit more manageable.

Answer link

responded

Benzinga

Share.

About Author

Comments are closed.