Cosmos is a network of blockchains that allow it to scale better. In a way, it is more similar to Polkadot than Ethereum, but the similarity among all three blockchains is that they support smart contract-using decentralized applications.
Ethereum looks to mitigate the scalability issues through Eth2, but a full rollout of Eth2 would take time. Eth2 also scales over time, as sharding and other technologies get released.
“FWIW @cosmos and @ethereum are complimentary. I’m currently building a bridge between the two that will provide decentralized contract ownership and tools for Liquidity Providers on ETH #DeFi apps. We ( @cosmos ) have never thought of ourselves as EthKillaz™.”
Throughout 2020, Cosmos has seen rapid growth with the emergence of large-scale blockchain protocols within the ecosystem.
Although it would take time for individual DeFi protocols and platforms to migrate to Cosmos, the network is seeing an emergence of widely-utilized blockchains, like BSC.
DeFi is big enough for multiple ecosystems to co-exist
For instance, currently, it costs around $20 to process smart contract transactions on the Ethereum blockchain network. For transactions involving DeFi protocols, the gas can be higher due to staking.
Let’s say a user buys an asset with ETH, stakes it as a liquidity provider, unstakes it, and sells the rewards into ETH. The entire process would involve five transactions, so it would cost $200 total.
Scalability-focused blockchain networks would eliminate this pain point in DeFi, which is where Cosmos could prosper over the next coming months.