Cronos vs XRP: Is There Common Ground?

At first glance, Cronos vs XRP are completely different cryptocurrencies. But they have something in common. Read on to learn about it.

Comparing Cronos vs XRP

The cryptocurrency industry is an eclectic and ever-changing environment. Lately, we’ve seen the emergence of hundreds of new blockchains and even more crypto tokens.

When analyzing CRO versus XRP, you might think that we are comparing apples and oranges, considering their different use cases. However, for an investor, it’s crucial to understand these differences. This helps them take advantage of them when the market turns more favorable.

To help you understand these two assets, we deconstruct their fundamentals and delve deep into their respective technologies. This should give you some essential knowledge when investing and choosing the token with more potential in the long term.

What Is Cronos?

Cronos is the native blockchain of the Crypto.com ecosystem. This centralized exchange has been around since 2018 and is trusted by over 80 million users worldwide. It competes with the big names in the industry such as Binance, Kraken, and Coinbase.

Crypto.com became popular thanks to their crypto debit cards that allowed users to pay anywhere with their assets. In 2021, the exchange launched a full-fledged smart contract ecosystem through its Cronos blockchain. The platform migrated its CRO token on this new blockchain, allowing users to spend it for gas fees when interacting with smart contracts.

Currently, the Cronos blockchain is an EVM-compatible chain that allows developers to port code from Ethereum. Meanwhile, it’s also IBC-compatible, which allows for more interoperability with the Cosmos blockchain ecosystem.

In this regard, Cronos directly competes with the BNB token, offering new opportunities to both developers and holders. As a result, many have chosen to exchange BNB to CRO and participate in this new ecosystem.

What Is Ripple?

The XRP Ledger is a payment network that caters to institutions, first and foremost. Its goal is to provide a cheaper and more secure system for transferring assets over the Internet between institutions, countries, and governments.

To achieve this, Ripple uses a decentralized ledger where a number of validators verify transactions on its network by reaching a consensus. This closed list of validators holds a copy of the XRP Ledger and acts as trusted parties in the protocol.

More precisely, Ripple allows any type of asset to be transferred over its network. The ledger uses IOUs for these assets, which represent a debt from one user to another on the network.

This allows financial institutions to instantly transfer value over the network, be it FIAT, commodities, or other cryptos.

In addition, the network uses the XRP token for value transfers. XRP holders can use the token to send and receive money, eliminating the need for IOUs.

Cronos vs XRP: Common Features

As you might have noticed, CRO and XRP have disparate use cases. Cronos is a smart contract platform that allows developers to deploy decentralized applications. In turn, it can be plugged into the Web3 ecosystem. Users can deploy DEXes, lending platforms, blockchain games, metaverses, NFT marketplaces, etc.

Ripple has limited use cases and doesn’t easily integrate into the DeFi narrative. It directly caters to a strong narrative in the crypto industry — onboarding institutions.

Their main similarity lies in their efficiency. Both blockchains use a highly scalable protocol that allows the onboarding of a massive number of users. This scalability also implies that transaction fees remain negligible, regardless of the amount of assets transferred over the network.

Cronos vs XRP: What to Invest In?

If you read this far, the stark differences between CRO and XRP should be much clearer now. With that in mind, we should discuss that Ripple is currently undergoing a lawsuit with the SEC. In case Ripple wins the plea, it would provide a possible strong rally for the XRP cryptocurrency.

In contrast, Cronos has been struggling to onboard dApps on its new chain, considering the huge competition in this niche. Thanks to its very particular use case, XRP manages to remain on top as a better and more robust asset for the long term. We recommend considering it as your next crypto investment.

SEE ALSO: PayPal Unveils “On And Off-Ramps” For Web3 Payments And Enhanced Digital Currency Access