Cronos Labs and Crypto.com as a ”strong engine” for Web3

The Cryptonomist interviewed Ken Timsit, Managing Director at Cronos Labs.

Can you talk about Cronos, what is it and how you would explain it to people who are not aware of the project?

Cronos (cronos.org) is the leading EVM-compatible layer 1 blockchain network built on the Cosmos SDK, supported by Crypto.com, Crypto.org and more than 500 app developers and partners. The mission of Cronos is to make it easy and safe for the next billion crypto users to experience Web3, with a focus on consumer use cases in DeFi and GameFi.

The vision behind Cronos is that the next wave of Web3 adoption will require decentralized blockchain networks combined with regulated on- and off-ramps, and user choice between regulated custody and self-custody, both for simplicity and compliance reasons. Hence the importance of partnerships with regulated exchanges like Crypto.com.

The vision of Cronos is also one of a multi-chain world, where each chain represents a global digital community with its own relationships, quirks, culture and memes. In that sense, Cronos is very aligned with the vision of the Cosmos ecosystem which promotes self-sovereignty.

Cronos holds a top 10 position among all chains and is adopted by >1 million users. The chain is powered by the Cronos ($CRO) cryptocurrency, which supports a broader ecosystem of more than 80 million users worldwide. 

Can you explain why it is so scalable?

The Cronos ecosystem consists of several layers.

The base layer (layer 0) is the Crypto.org chain, a proof of stake protocol for extremely fast, extremely cheap (below one cents) basic payments and transfers.

The open programmable layer is the Cronos blockchain itself, a layer 1 blockchain network which can support an infinite number of Ethereum-compatible decentralized applications. It is on par with other top 10 blockchain networks in terms of throughput and transaction fees, and is carbon neutral.

On top of this, application developers can create layer 2 use case specific blockchain networks, so called rollups, that share the Cronos layer 1 as the settlement and liquidity layer. On layer 2 networks, transaction fees can be as low as one tenth of a cent. 

When looking at these layers combined, the Cronos ecosystem can support hundreds and even thousands of transactions per second easily.

You use EVM, how does it work?

EVM is the Ethereum Virtual Machine, an environment which makes it possible to easily deploy applications and smart contracts using Web3 technologies and Solidity programming language. These technologies currently represent more than 90% of blockchain adoption when it comes to dollars invested in decentralized finance. 

Cronos has implemented EVM on top of the Cosmos SDK by working with the rest of the open-source Cosmos community and particularly the Ethermint project, which is supported by a vibrant global community. We remain committed to contributing to the open-source Cosmos and Ethereum ecosystems, and leveraging the best of what the community has to offer.

Why did you choose Proof of Authority?

The Cronos protocol uses the Tendermint consensus, a blockchain consensus which, when used together with the Cosmos SDK, has proven to be one of the most mature and robust consensus for sovereign chains.

Cronos chose a Proof of Authority implementation of the Tendermint consensus. Practically, this means that new node validators must be approved by other validators before participating in the governance of the network. This is a compromise which ensures sufficient level of decentralization, with around 30 validators, while ensuring that every validator has a robust technical track record and that the network is not over-spending in validator rewards beyond what is necessary to ensure network performance. By managing the number of validating nodes, Cronos is also able to limit its carbon footprint at a neutral level.

How does it work to be a validator?

New validators must be approved by the governance before starting operations. The governance vote usually looks at two main factors.

First, does the node operator have an excellent track record of technical performance (this is driven by blockchain understanding and devops skills)?

Second, does the node operator bring strategic value-added to the ecosystem. Recently approved validators like Blockdaemon – a leading operator of Enterprise-grade nodes – Dora Hacks – a global hacker community –  and Ubisoft – a leading game creator – are excellent examples of this.

What are the goals for the future?

The role of Cronos Labs is to coordinate protocol R&D and support the development of the Cronos application ecosystem.

From an R&D standpoint, we work closely with the open-source community to further increase the scalability of the Cronos blockchain and to enhance its interoperability with both the Ethereum and Cosmos ecosystem. Priority R&D topics include layer 2 rollups, account abstraction, interchain accounts and interchain security.

From an ecosystem perspective, we’d like to make sure that we support developers who come up with innovative ideas and sustainable business models to drive the next wave of Web3 adoption in DeFi and GameFi. This is accomplished through the Cronos Builders Program and the Cronos Accelerator Program. Each program provides a combination of technical advice, networking networking support,. marketing support and financial support to start-up founders. For more information, please visit the official website.

What are your partners and collaborators you are most proud of?

The long term partnership between Cronos blockchain and Crypto.com has proven to be a powerful engine when it comes to bringing new users to Web3 in an easy, safe, compliant manner.

The Cronos Accelerator Program announced partnerships with AWS, Google Cloud, Protocol Labs, Ubisoft and GSR, which are bringing real value-added to ecosystem startups.

When it comes to developer tools, I would like to highlight the partnership with Caldera, a provider of optimistic rollup as a service, and the Cronos Play project, a suite of open-source tools and 3rd party integrations which make it easy for game creators to develop Web3 games on Cronos.