Home to a multitude of investment and cryptocurrency products, most users know Crypto.com for its cryptocurrency-backed exchange, wallet, and credit card services. However, many users may not be aware that Crypto.com also offers its own native token, CRO.

CRO is the native token of the Crypto.com chain, an open-source and decentralized blockchain developed to make payments faster and cheaper. Crypto.com recently announced that it will transition CRO from its role as an ERC-20 reward token to its own native blockchain – and CRO continues to grow in terms of total market capitalization.

If you want to learn more about the technology behind CRO and its potential future role as a payment system, our beginner’s guide is a great place to start. We’ll walk you through the basics of blockchain technology and how the new CRO platform will aim to solve some of the biggest problems currently facing the Bitcoin blockchain structure . We will also teach you a bit more about how you can add CRO to your cryptocurrency investment portfolio .

What is crypto.com CRO?

CRO is the native token of the Crypto.com platform. Although CRO was originally developed as an ERC-20 token (meaning it was built using the Ethereum network ), the Crypto.com Chain recently announced the launch of its own public and open blockchain -source. If you previously owned the ERC-20 variant of CRO, Crypto.com Chain provides a custom web-based token migration tool that allows you to transfer your current ERC-20 tokens to the new chain.

CRO powers the Crypto.com chain, which allows you to use cryptocurrency to pay online merchants more than current options. CRO acts as an intermediary currency, allowing you to convert your cryptocurrencies into fiat currency at a very low cost. Crypto.com Chain aims to provide a more affordable and accessible way to pay for online purchases using cryptocurrencies, while offering solutions to traditional bitcoin scaling issues.

Scaling is a major issue preventing wider integration of blockchain technology. “Scaling” refers to the ability of a blockchain to cope with a large influx of transactions occurring simultaneously on the blockchain. If a blockchain is not optimized for scalability, users who initiate transactions above the blockchain threshold will remain in a queue. Those who have paid the highest amount in commission retain the first place in the queue.

The Crypto.com Chain aims to provide a solution to the scalability problem by offering immediate payment confirmations while supporting scalability as the number of transactions increases. Crypto.com Chain’s target confirmation time is under one second, and the platform promises to support over 50,000 transactions per second when the testnet implementation is complete.

The advantages of CRO over other cryptocurrencies

The Crypto.com chain and its token, CRO, aim to address a number of issues traditionally associated with widespread blockchain implementation, including:

  • Instant Transactions and Reduced Fees : The primary goal of CRO is to support a faster payment network by introducing scaling solutions that increase as transaction load increases. In its final form, the Crypto.com blockchain plans to support around 50,000 transactions per second, many more transactions than is comfortably possible on the Bitcoin blockchain.
  • Improved support for merchants : The developers behind Crypto.com have taken steps to make it easier to integrate the CRO blockchain. The company recently released its dedicated software development kit (SDK) for merchants to integrate CRO blockchain solutions with minimal prior technical knowledge.
  • The Crypto.com chain uses decentralized technology : Like many emerging decentralized finance (DeFi) solutions, CRO avoids using a single point of failure by spreading confirmations across a network of computers during verification transactions. This makes CRO much harder to target during hacks and theft attempts compared to payment systems that rely on a central third party.
how CRO works

CRO history (crypto.com)

Founded in 2016, Crypto.com is a Hong Kong-based project that aims to showcase a wide range of use cases for blockchain technology. The platform is best known for its suite of practical cryptocurrency applications, which range from trading to creating cryptocurrency-backed loans. Today, Crypto.com serves over 90 countries and maintains a global user base of over 10 million customers, investors and traders.

Security and types of CRO nodes

The Crypto.com chain uses 2 types of nodes to ensure the safety and security of users.

  • Advising Nodes : Also known as “validating nodes,” advising nodes are used for settling transactions, reading important data from the network, and verifying all transactions made on the network.
  • Community Nodes: Community Nodes (also called “full nodes”) can be used by any member of the chain. Community nodes can be used to settle own transactions, read data from the network, or verify send and receive transactions.

Crypto.com Participants

Although open to public consensus, the Crypto.com chain uses 4 distinct roles for participants in its network:

  • Customers : Chain customers can use the network to make payments using cryptocurrencies. The structure of the blockchain allows for anonymous transactions.
  • Merchants : The role of merchants on the chain is to accept cryptocurrency payments for the services and products they provide. The requirements to become an on-chain merchant are flexible in terms of base fiat currency and accepted cryptocurrencies.
  • Cryptocurrency customer acquirers: Customer acquirers handle network cryptocurrency payments and are responsible for facilitating on-chain transactions. To qualify as an acquirer, a user must have a certain amount of CRO locked up as collateral.
  • Merchant Acquirers : Similar to customer acquirers, merchant acquirers manage transactions initiated on the merchant side of the network. Merchant acquirers must also meet a minimum amount of CRO in the form of collateral.

CRO tokens

Acting as the native token of the Crypto.com chain, CRO is primarily used as an intermediary currency settlement tool. All users on the chain will need to fund block transaction fees using CRO, and tokens can be earned as rewards for processing and verifying transactions on the network.

Should you invest in the CRO of crypto.com?

It is essential to do your due diligence before making any type of cryptocurrency or traditional investment. When researching CROs, make sure you are reading about the blockchain project and not contract research organizations, which also tend to be abbreviated as “CRO”. As with any cryptocurrency investment, you should also set a strict budget when making your first purchase.

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