Polkadot Vs. Cosmos: Which is BEST?! Complete Comparison!!

Foreign The future of cryptocurrency is Multi-chain and that means Interoperability will become ever more Important as the crypto ecosystem Continues to expand polkadot and Cosmos Are two crypto projects that are Competing for the interchain crown and The intensity of this competition has Accelerated over the last few months Today I’m going to compare two of the Most powerful crypto projects out there And tell you which one has the most Potential in both the short term and the Long term [Music] Before we square up these cryptos There’s something you need to know being Your financial advisor is not my role Entertainment and education are the only Things you’ll get from this crypto bro Please contact a financial advisor for Help with your crypto portfolio Also note that atom and Dot are two Cryptos I hold so you won’t be getting Any bias during this show Now if this is your first time tuning in My name is guy and this channel is the Perfect place to binge that’s because It’s packed with crypto content that’s So good it’s almost a sin Coins tokens news and many other Important things if you’ve already got a Grin subscribe to the channel and ping

That notification Bell so to make sure It syncs in Now that you know what I’m trying to Bring it’s time to analyze polka dot and Cosmos and find out which one will win Okay let’s start with the founders of Both projects polka dot was founded by Gavin wood in 2016. Gavin holds a PhD in Human computer interfacing from the University of York one of the top Universities here in the UK Gavin co-founded ethereum in 2013 Invented the solidity programming Language used by ethereum authored the Ethereum yellow paper and even coded the First functional version of ethereum Gavin also played an instrumental role In the creation of substrate a software Developer kit that makes it possible to Create a cryptocurrency blockchain from Scratch in a short amount of time Polkadot as well as its various para Chains were created using substrate Now Cosmos was founded by Jay Kwon in 2014. Jay holds a bachelor’s degree in Computer science from Cornell University Which has one of the highest ranked Computer science programs in the world Jay invented a novel consensus mechanism For cryptocurrencies called tendermint Which is very fast very secure but Somewhat centralized Jay also played an instrumental role in The creation of the cosmos SDK a

Software developer kit that likewise Makes it possible to create a Cryptocurrency blockchain from scratch In a short amount of time over 50 Cryptocurrencies have been created using The cosmos SDK including the binance Smart chain Terra crypto.com’s Chronos Chain and Thor chain NOW Thor chain is Actually a pretty crazy crypto project And you can learn more about it using The link in the description anyways in Terms of development polkadot was built By parity Technologies a software Company based here in London England Which was founded by Gavin in 2015. Gavin currently serves as the CEO of Parity Technologies Polkadot’s development is coordinated by The web3 foundation a non-profit Organization based in Switzerland which Was likewise founded by Gavin in 2017. Gavin currently serves as the president Of the web3 foundation Polkadot raised around 250 million Dollars across various icos and token Sales in 2017 2019 and 2020. the caveat Is that around 120 million dollars of These funds were lost when parity Technologies ethereum wallets were Compromised this means polkadot ended up With around 130 million dollars Polkadot’s main net went live in May 2020 and transfers of its native dot Coin were enabled in August 2020.

Polkadot is still technically in Development though its roadmap is Essentially complete Cosmos was built by Tendermint Inc a software company based In the United States which was founded By Jay Kwon in 2014. now Jay left Tendermint Inc at the beginning of 2020 To work on a new crypto project called Noland which will use a new programming Language Jay created called no Tender mint Inc also recently rebranded To ignite and according to reporting by The block crypto this is partially Because Jay took back the ownership of The tender mint brand and partially Because tendermint Inc as a company Wanted to change its focus to incubating Upcoming Cosmos projects Cosmos’s development is coordinated by The interchain foundation a non-profit Organization based in Switzerland which Was founded by Jay in 2017. Jay also Stepped down as president of the Interchain foundation in June last year To focus on his crypto project and Programming language development Cosmos raised around 18 million dollars Across various token sales in 2017 and Ignite recently raised an additional 150 Million dollars from various crypto VCS Cosmos’s main net went live in March 2019 and it is still technically in Development Cosmos also has quite a few Milestones

Left on its roadmap and this is Primarily because ignite spent much of Its initial time and energy developing Crypto Technologies such as the cosmos SDK and the cosmos IBC now I won’t get Too much into cosmos’s roadmap for the Sake of time so if you want the full Story there you’ll have to check out my Most recent update about the project Using the link in the description Anywho when it comes to what’s under the Hood polka dot uses a proof-of-stake Blockchain that can process around 1 000 Transactions per second and is currently Secured by around 300 validators Note that the maximum number of Validators polkadot can currently Support is one thousand Polkadot’s blockchain is called the Relay chain now the relay Chain’s Purpose is to provide security to Substoric-based cryptocurrency Blockchains these cryptocurrency Blockchains are called parachains and They must Bond I.E stake dot to plug in To polka dots relay chain There are many different types of Parachains including common good power Chains used for things like cross chain Bridges para threads which are pay as You go power chains that can be shared By multiple crypto projects and standard Power chains Because polka dots relay chain can

Currently only support 100 Pair of Chains parachain slot auctions are used To decide which standard para chains are Given a slot In contrast to standard auctions the Winner of a parachain slot auction is Determined at a random time shortly Before the auction ends whichever Parachain had bonded the most dot at That time secures a slot for up to two Years To increase the chances of winning Crypto projects looking to secure a Power chain slot often run parachain Loan offerings which make it possible For anyone to lend their dot to the Project for the duration of the Parachain lease in exchange for the Tokens belonging to the project At the end of the parachain lease period The dot loaned to the project by Parachain loan offering participants is Returned now this makes parachain loan Offerings Superior to initial coin Offerings because you never actually pay Anything for the tokens you get only the Opportunity cost of having your dot Locked Now there have been 18 parachain slot Auctions so far and 14 pair of chains Have plugged into polka dots relay chain At the time of shooting Note that transaction fees on polka dots Parachains are usually not paid in dot

But in the native coin of the crypto Project running on the parachain Also note that polka dot has yet to Activate its cross-chain communication Protocol at the time of shooting though Its code was recently audited so it Should be launching soon In the meantime polkadot’s power chains Are not very interoperable with few Exceptions Now you can learn more about polkadot’s Parachain slot auctions using the link In the description Like polkadot Cosmos uses a proof of Stake blockchain which can process up to 10 000 transactions per second This is because cosmos’s blockchain is Secured by just 150 validators which is Currently the maximum that Cosmos based Blockchains can support Whereas the purpose of polka dots Blockchain is to provide security to Other polka dot projects the purpose of The cosmos blockchain is to be an Interoperability hub for other Cosmos Projects This interoperability is achieved by the Aforementioned Cosmos IBC which is short For inter-blockchain communication Protocol As the name suggests the cosmos IBC Makes it possible for cryptocurrency Blockchains to seamlessly interoperate You can think of the cosmos IBC as being

A standardized interoperability adapter That can be added to just about any Cryptocurrency blockchain Over 40 cryptocurrencies have added Support for the cosmos IBC so far and in Theory Cosmos should be the blockchain They all connect to for optimized Interoperability because it’s not Efficient for there to be dozens of Different Bridges between different Blockchains in practice however many IBC Chains are also connecting amongst each Other rather than gravitating towards a Single Hub and most of the IBC activity Is taking place on osmosis a Cosmos-based decentralized exchange that Lives on its own blockchain and acts as Its own interoperability hub The catch is that osmosis’s osmocoin Isn’t available on any centralized Exchanges and that means one of the only Ways to use the decks is to buy cosmos’s Atomcoin and Bridge it over to osmosis As a result Cosmos has become more of an Interoperability Bridge rather than an Interoperability hub Even so Cosmos continues to be integral To the expansion of cosmos’s ecosystem In lieu of crowdfunding mechanisms like Parachain loan offerings or initial coin Offerings most of cosmos’s projects opt To airdrop their coins directly to atom Holders stakers and liquidity providers When you consider the fact that

Cosmos-based blockchains use their own Coins to pay for fees too this gives Cosmos’s atom a surprisingly similar Profile to polka dots Dot and this ties Into my favorite topic tokenomics In terms of tokenomics polka dots dot Had an initial supply of 10 million the Entirety of which was minted when its Mainnet went live Shortly after dot transfers were Activated in August 2020 the polkadot Community voted for a redenomination of Dot This divided every original so-called Old Dot by 100 resulting in an actual Initial supply of 1 billion so-called New DOT around 60 percent of Dot’s Initial Supply was sold to early Investors and the remaining 40 was Allocated to the web 3 Foundation This dot finished vesting in February Last year According to the subscan Explorer almost 50 percent of dots circulating Supply is Currently being held by the top 25 Wallets it’s likely many of these Wallets belong to exchanges but Unfortunately these wallets are not Labeled Dot is inflationary with no maximum Supply and this inflation rate depends On the amount of dot being staked as a Percentage of its total Supply the Subscan Explorer states that Dot’s

Inflation rate is currently shy of eight Percent per year with 55 percent of dots Total supply of almost 1.2 billion being Staked According to stakingrewards.com dot Staking rewards are currently around 14 Per year for both validators and Delegators with a 28-day lockup The minimum stake for validators is Currently around 350 Dot and for Delegators it’s 80 dot note that the Minimum stake required occasionally Changes As for Cosmos atom had an initial supply Of 236 million when its mainnet launched Around 80 percent of this Supply was Sold to early investors and the Remaining 20 was allocated to ignite and The interchain foundation with each Getting 10 percent Coincidentally atom also finished Vesting in February last year according To the atomscan Explorer almost 40 Percent of atoms circulating Supply is Currently being held by the top 25 Wallets it is again possible that many Of these wallets belong to exchanges but Unfortunately these wallets are not Labeled either Atom is inflationary with no maximum Supply and this inflation rate likewise Depends on the amount of atom being Staked as a percentage of its total Supply

The atomscan Explorer states that atom’s Inflation rate is just over 10 percent Per year with 62 percent of atoms total Supply of 294 million being staked According to stakingrewards.com atom Staking rewards are currently around 17 For validators and 15.5 percent for Delegators with a 21-day lockup there’s No minimum stake for delegators but Validators must stake enough to make the Top 150 validators by stake which is Currently over 21 000 atom now on that note if you’re Curious about the top staking Cryptocurrencies for 2022 you can check Out my video about that using the link In the description And now for everyone’s favorite part Price action and price potential with an Average Ico price of around a dollar Early polka dot investors saw more than A 50x return assuming they sold their Dot at or near its all-time high in November last year as you can see dot Appears to be quite correlated to BTC The price action is almost exactly the Same and it’s important to point out That both cryptos continue to be in a Long-term uptrend Since polkadot’s mainnet launched dot Supply has increased by almost 200 Million if we assume an average price of Around 15 per dot during that time this Potentially translates to three billion

Dollars of cell pressure note that there Was probably additional cell pressure From the web 3 Foundation to fund its Operations and up and coming polka dot Projects If Dot’s impressive price action hasn’t Made it obvious enough all this cell Pressure has been successfully offset by The demand for DOT which is coming from A few sources besides speculation The first is institutions which have Invested at least 100 million dollars in Dot via half a dozen exchange traded Funds according to the just ETF website Most of these were launched over the Last year dot is also the most held Cryptocurrency by crypto funds according To masari’s recent crypto report which I Covered a while back more about that in The description I digress The second is polkadot’s ongoing Parachain slot auctions which have Attracted almost 150 million dot worth Over 2.2 billion dollars the total Buying pressure depends on the average Price all this dot was purchased at Which is really anyone’s guess and my Guess is that at least 1.5 billion Dollars worth of dot was bought The third demand driver for DOT is Coming from use cases on polkadot’s Power chains notably akala which Recently announced a massive incentive Fund for its D5 platform which leverages

Dot A convenient side effect of polkadot’s Parachain slot auctions is that almost 15 percent of dots circulating supply Has been locked for two years and when You add that to Dot’s State Supply of Around 55 it means only around 30 Percent of dot Supply is readily Available for trading This should translate to more price Volatility for DOT when demand comes Back around but Dot’s massive market cap Means it’ll have a hard time going Higher than 3x in the short to medium Term especially with all the resistance That’s been built up around the 30 level With an average Ico price of around 10 Cents per atom cosmos’s early investors Saw more than a 400x return assuming They sold their atom at or near its All-time high in September last year That is legit as you can see atom is Much less correlated to BTC Factors specific to the project seem to Be moving its price the most and it’s in A very very strong long-term uptrend Since cosmos’s mainnet launched atoms Supply has increased by around 60 Million if we assume an average price of Around 10 dollars per atom during that Time this potentially translates to 600 Million dollars of cell pressure Note that there was probably additional Cell pressure from the interchain

Foundation and ignite to fund their Operations and up-and-coming Cosmos Projects as well If atom’s impressive price action didn’t Make it obvious enough this cell Pressure has been more than offset by The demand for atom which is likewise Coming from many sources besides Speculation The first is institutions though this Exposure is currently limited to Grayscale’s recently released smart Contract trust which only has four Million dollars in assets under Management five percent of which is atom Now that said there has been an uptick In institutional interest in Cosmos over The last few months and this seems to be Because of all the buzz around Terror as Well as the Innovation occurring in Cosmos’s ecosystem as well as on the Project itself Valkyries recently announced staking Trust is one example here A second demand driver for atom is all The new Cosmos projects that are Airdropping their coins to atom holders This is related to the third demand Driver for atom which is all the use Cases being created for atom by these New Cosmos projects mostly in the form Of liquidity provision and yield farming The osmosis decks alone currently has Over 50 million atom deposited as

Liquidity and while it’s again Impossible to know how much all this Atom was purchased for it was probably Hundreds of millions of dollars of Buying pressure and that’s just for Osmosis Not only that but many projects in Cosmos’s ecosystem aren’t widely Supported by centralized exchanges or Even resist being listed on centralized Exchanges this only further increases The demand for atom as the bridge Currency to these new chains Another advantage that atom has is a Medium-sized market cap this means that It takes less money to push up atoms Price in percentage terms to put things Into perspective if atoms saw the same Level of investment as dot it would Result in a 3X from its current price I Reckon this is a realistic short to Medium-term expectation for atom Assuming retail interest returns if that Does indeed happen and at the rate that Cosmos’s ecosystem is growing I think a 5x move is a possibility Now I will stress that this all assumes The crypto Market will continue its Rally something which isn’t in any way Guaranteed if it doesn’t Dot and atom Are two kryptos that could be good to Hold during a bear market and you can Find out what the other ones are using The link in the description

Anyhow no comparison video would be Complete without mentioning a few of the Challenges these crypto projects face The first challenge for polkadot is Adoption those of you who’ve watched my Videos about the top polka dot projects Will know that many of them are based in China or at least were it’s possible if Not likely that most of polkadot’s Chinese projects left for greener Pastures after the Chinese government Started cracking down on altcoins late Last year however the same can’t be said For all the Chinese dot holders who were Likely forced to sell their Stacks Because of the Crackdown and this Probably prevented Dot’s price from Going higher last year The fact that polkadot seems to have Prioritized its adoption in China Probably means that adoption suffered Elsewhere and this ultimately might be Why Dot’s growth hasn’t met the Expectations of many holders The second challenge for polka dot is Competition and not just from Cosmos Polkadot’s documentation indicates that It’s coded in Rust and this puts polka Dot in direct competition with the likes Of Solana and near protocol when it Comes to acquiring developers as it so Happens Solana and near protocol have Raised hundreds of millions of dollars To attract developers over the last year

Unfortunately the same can’t be said for Polkadot and this means it’s going to Have a harder time offering the Financial incentives required to woo Developers To make matters worse polkadot is Arguably in competition with its own Ecosystem for these same developers Including from kusama polka dots living Testnet this includes competition for Users and even validators in kusama’s Case The third challenge for polka dot is Regulation as noted in the FAQ section Of polkadot’s website one of the risks Associated with the project is that Quote regulatory treatment of dot is Uncertain Now to be fair this is the case with Just about every crypto project Especially with all the Antics the SEC Has been up to these days the thing is That polkadot found at Gavin wood has Seemingly been obsessed with these Regulatory risks since last summer and That suggests they might be substantial For Cosmos adoption doesn’t appear to be A challenge and that’s simply because The Kepler browser extension wallet used To interact with cosmos’s ecosystem has The same number of downloads as polka Dots browser extension wallet which also Allows users to interact with polkadot’s Power chains

As far as I can tell the first challenge For Cosmos is development as I mentioned Earlier ignite spent much of its initial Time and energy developing cosmos-based Technologies that it basically then gave Away for free as amazing as this is Cosmos itself took a back seat as a Result and the constant delays say it All These development delays could get worse As cosmos’s Second Challenge is also Competition for developers and this Competition is also coming from cosmos’s Own ecosystem Case in point many of the top crypto Projects in cosmos’s ecosystem were Founded by former members of ignite in Other words developers have been Splitting off from cosmos’s core team to Create their own crypto projects and You’ll recall this list includes Cosmos Founder Jay Kwon himself The third challenge Cosmos faces is also Regulation according to the crypto Ratings Council website atom scores a 3.75 out of 5 in terms of how similar it Is to being a security that is akin to a Stock in a company This puts it closer to the top of the Sec’s Hit List which chairman Gary Gensler surely has tucked away in a draw Somewhere For reference xrp scores a 4 out of 5 And we all know what’s been happening

There if you don’t you can check out my Recent update about the sec’s lawsuit Against Ripple using the link in the Description And now for the Moment of Truth which is Better polka dot or Cosmos well I’ll Start by saying that it’s uncanny just How similar these two crypto projects Are The only real difference is the purposes Their blockchains serve and it looks Like they’re about to become similar on That side too That’s because Cosmos will be Introducing interchange security later This year which will allow smaller Cosmos cryptocurrencies to leverage its Blockchain for additional Security in a Similar way that power chains do on Polkadot but let’s take it from the top As far as the founders go both chaps are Nothing short of savants they’re Geniuses in every sense of the word and The only real difference between them is That Gavin is still a part of polkadot Whereas Jay has cut himself off from Cosmos’s core There are pros and cons associated with Each of these decisions but I reckon They’re irrelevant given that neither of The two are involved with the day-to-day Operations of their respective projects At this point in time at least on paper It’s a different story on the

Development side however even though Polkadot is behind Cosmos as far as Interoperability goes it’s created a Much more complex system that continues To improve and expand When you consider that both projects Have been around for about the same Amount of time it’s clear that polkadot Has been and continues to beat Cosmos on The development front Ironically enough cosmos’s comparable Simplicity gives it the edge under the Hood Cosmos is faster much more Interoperable and in my experience it’s Been much more user-friendly as well Come to think of it Simplicity is Probably why cosmos’s mainnet was able To launch more than a year before polka Dots and this has contributed to atom’s Terrific tokenomics Being around for that extra year means Atom has a time to become more equally Distributed and the fact that atom began Trading in the middle of the last bear Market is the cherry on top because it Probably washed out the weak hands Unfortunately atoms tokenomics don’t Translate to terrific economics this is Where dot Reigns Supreme because even Though dot isn’t used to pay for fees on All polkadot’s power chains it has more Than enough institutional interest to Make up for it never mind all the Secondary utilities on parachains as for

Atom its primary demand drivers are Mostly temporary as centralized Exchanges continue adding popular Cosmos Projects atoms use as a bridge currency Will decline especially since it hasn’t Managed to turn itself into the Interoperability Hub it was hoping to Become I’ll reiterate that this role can Be just as easily taken by another Cosmos project such as osmosis and as it And other Cosmos projects become more Popular we could see future airdrops Directed to holders and stakers of their Coins instead of atom I’ll also reiterate that the challenges Cosmos and polka dot face are applicable To just about every cryptocurrency so It’s safe to say that they’re evenly Matched on that front So which is better polka dot or Cosmos Well as the facts stand today Cosmos Clearly has more potential for growth in The short to medium term but polkadot is Poised to take the lead in the long term Now it’s of no consequence to me because I plan on holding atom and Dot for the Foreseeable future but I would love to Hear from you which do you think is the Best and why So let me know by dropping a comment Down below be sure to smash that like Button if you enjoyed the video and Don’t forget to subscribe to the channel And ping that notification Bell before

You go if you’re looking for more from Me coin Bureau Clips is the place to be I also have a crypto podcast that’s Packed with all the crypto knowledge you Need I’m active on Twitter Tick Tock and Instagram too and give you my thoughts On the crypto Market in my telegram Group My Weekly Newsletter is where I Give you more in-depth reviews show you What other cryptos I hold as part of my Portfolio and what other videos I plan To do If you want to support the channel head On over to the coin Bureau merch store And the crypto swag that’s right for you Can find your way there using the links Down in the description they should be Just within View Thank you all so much for watching stay Safe stay well and stay crypto [Music]


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