5 Top “Internets For Blockchains”
Aion, Cosmos, ICON, Polkadot, Wanchain: Connecting Blockchains
Disclaimer: the cryptocurrency industry is extremely volatile and unpredictable. Superorder isn’t responsible for any consequences of your investments. Always do your own research before making a deal.
Today, we want to reveal five blockchains 3.0 projects instead of only one! The catch is that all our heroes share the same goal as they want to connect existing blockchains and create something like a decentralized Internet. Nowadays, all crypto/blockchain projects are similar to old computers from the pre-online era. They function in isolated environments and can’t interact with each other. But there are companies working on solutions.
As there are more examples of teams focused on this ambitious idea, Aion, Cosmo, ICON, Polkadot, and Wanchain are the most famous and the most successful ones. We unite them under the principle of blockchain interoperability.
Before we proceed to reviews, take a quick look at our brainchild — a crypto trading terminal Superorder that also connects different systems. With it, you can easily trade on several cryptocurrency exchanges from one place. Just try it. :)
Well, let’s move to the topic and begin with Aion!
Aion
Aion is like a TCP/IP protocol but for blockchains. Developers want to create digital bridges between different decentralized platforms to make inter-chain transactions possible. It’s interesting that bridges are one-way only so it’s required to create two separate connections to allow two blockchains to interact fully. Aion also acts as a development system that supports smart contracts and DApps.
Key Features
- Bridges. Provide for connecting blockchains. As for now, leading networks like Bitcoin and Ethereum aren’t compatible but developers hope to engage them.
- Proof-of-Intelligence. A unique alternative to Proof-of-Work. The main principles are the same but the energy spent by validators is used to train AI machines.
- Virtual Machine. Recently, Aion launched its new product built over Java Virtual Machine. It allows Java coders to work with the project directly.
Pros And Cons
Aion features a pretty interesting and really working product. That’s unusual for the world of blockchain 3.0 projects. Its roadmap is clear and transparent but, most importantly, there are some completed steps. As for now, developers can create apps and try the mainnet but authors plan to add more cool stuff, e.g. interoperable and modifiable systems.
Nevertheless, Aion leaves some questions about the project’s nature. Its focus on bridges is pretty odd because the mechanism isn’t as powerful as alternatives. When it comes to the global goal of connecting blockchains, Aion bridges may become not only inefficient but also vulnerable to new attacks.
Trading & Investing Tips
The native Aion token is ranked 97th now with a market cap of $62 million. Prices continue to move down so we expect testing new support levels soon. We don’t recommend buying this coin now or performing day trading crypto. For investors, Aion may be interesting but, honestly, it looks like the weakest player in our comparison.
Cosmos
Probably, Cosmos is the most discussed project among our five heroes. Fans call it the Internet for Blockchains and this name looks pretty viable. Basically, Cosmos is a multi-layer ecosystem that both allows creating new blockchains and connecting existing ones to the Cosmos itself. The project is based on the hub-and-spoke model and is focused on developers. Smart contracts and token transactions are possible but not essential.
Key Features
- Hubs and zones. The general structure of Cosmos provides for several independent main blockchains called hubs and smaller clients called zones.
- Inter-Blockchain Communication. This tool is waiting to be voted for but it should allow transactions between different systems.
- Tendermint Core. The unique consensus protocol that features the Practical Byzantine Fault Tolerance with high scalability and security.
Pros And Cons
Cosmos was under development for more than 3 years and was launched in March 2019. There are 19 completed milestones in the roadmap, including fully-working SDK, the launched mainnet, and the official wallet! Moreover, the system already supports token transfers between hubs. Cosmos is one of the best-developed blockchain 3.0 nets right now.
Still, the most important decisions aren’t made yet. Participants should vote for the Inter-Blockchain Communication solution that will allow networks to join the ecosystem. We can’t predict the challenges and pitfalls that Cosmos will face but there will be a lot of them, surely. Plus, the system isn’t fully focused on end users, to date.
Trading & Investing Tips
ATOM, the native coin of Cosmos, is now close to the top-rated tokens as it occupies 16th place (a record!) with a market cap of over $1 billion. The market is pretty bullish now so traders focus on the next uptrend. You can open or increase long positions regardless of your goals because both day traders and investors can benefit from ATOM now.
ICON
When it comes to architecture, ICON is another representation of the hub-and-spoke model, similarly to Cosmos. But this Korean project has completely different goals. It doesn’t focus on smart contracts or DApps and doesn’t provide for non-financial transactions. Instead, ICON aims at creating the network of interoperable blockchains for different organizations like schools, hospitals, and banks. It’s all about exchanges, generally.
Key Features
- AI algorithms. ICON developers promise to integrate AI-based trading thanks to self-taught neural machines. Sounds similar to Aion.
- ICON Republic. The whole ecosystem of existing and upcoming blockchains. It should include a unique DEX that will be released this year, according to devs.
- Loop Fault Tolerance. It’s an improved PBFT protocol with even higher security and scalability advantages that make hard forks obsolete.
Pros And Cons
ICON is the first project in our review that focuses on end users and, particularly, on traditional organizations. Developers try to attract followers from the centralized world by creating an Internet clone based on blockchain ideas. Now, it looks really interesting as we have the best practical worthiness.
Two main concerns about ICON refer to its attention to tech stuff and AI-driven systems. Firstly, official documents focus on future usage and cool features but they don’t disclose how these features are possible. Secondly, there’s some uncertainty in the real decentralization because AI tools are often biased as they are trained by humans.
Trading & Investing Tips
ICON has its token placed at 47th position in the global ranking. It’s a good result but we have doubts if the coin can test new highs soon. It featured two large uptrends recently so we’d suggest just watching for markets now. Prices may go up when bulls are ready for the new run. Investors also may be interested in ICON if they believe in the high engagement of traditional companies.
Polkadot
Polkadot is another project similar to Cosmos, both by the structure (hub-and-spoke) and focus (on developers). The system is under development now and doesn’t have any working mainnets, unlike other reviewed projects. Authors want to create an ecosystem of interoperable blockchains that will support existing ones, as well. Polkadot should help devs to create cryptosystems in a simpler way and also benefit non-crypto apps.
Key Features
- Parachains. They’re similar to zones in Cosmos. Each parachain will be connected to the main chain but will have unique functions, e.g. for IoT or healthcare.
- Shared security. Thanks to the cooperation between different blockchains, all systems will feature higher security even if they don’t have a lot of active validators.
- Substrate. The dedicated framework that combines everything you need to create a blockchain. Its modular structure and simple interface should attract users.
Pros And Cons
Polkadot has really ambitious goals, even more ambitious than Cosmos. Representatives reveal that they want to create a single global system for both existing and planned blockchains regardless of their specifications. They promise to make compatible everything, including even different smart contracts.
Obviously, we can’t evaluate the platform now. Polkadot isn’t officially launched so all ideas exist on paper only. This is the main drawback because in the modern world with dozens of similar decentralized projects, developers have to prove their words with certain actions, real products or services.
Trading & Investing Tips
Right now, the official Polkadot token isn’t issued yet. Reportedly, it will have DOT ticker so don’t confuse it with the token of liquidated exchange Cryptopia. Still, investors can join the ongoing private token sale or wait for a public one if they see potential in this digital asset.
Wanchain
Being a fork of Ethereum, Wanchain is similar to ICON. Both projects focus on the development of interoperable blockchains with high attention to payments. Wanchain doesn’t provide for non-financial data transactions. The project already offers several working solutions for customers, unlike other reviewed platforms. Authors specify that they work to facilitate cross-chain loans, deposits, exchanges, and other bank tasks.
Key Features
- Cross-chain payments. Yes, all reviewed projects offer this feature more or less. But Wanchain prioritizes it to create an interoperable decentralized bank.
- Ring signatures and One Time Addresses. Devs pay high attention to security and privacy so they utilize several tools to boost these parameters.
- Wallet. A rare example of a working system that allows storing WAN, BTC, and ETH. Moreover, it supports the mentioned cross-chain transactions.
Pros And Cons
Wanchain is highly focused on end users and payments. The project has real products and established cross-chain bridges with Bitcoin and Ethereum. The team delivers top-quality implementation and follows its roadmap accurately so we can expect for further integrations with private blockchains and tech improvements.
It’s difficult to blame Wanchain but we must make things clear: the company doesn’t invent new stuff. Instead, developers adapt and polish ideas of other teams. Wanchain is extremely similar to Ethereum but with some focus on interoperability derived from ICON. Thus, all the pros and, especially, cons are similar to Ethereum’s ones, too.
Trading & Investing Tips
The token of Wanchain performs the worst among the mentioned projects as it occupies 124th place only. The coin features a local correctional downtrend after a high spike at the beginning of June. You can risk and open short positions but be sure to put Stop Losses. Investors may get some Wanchain tokens but we’d opt for ICON and Cosmos.
