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Daily Brief

Can these ETH Competitors Bounce Back?

Bankless Guides to the Cosmos, BNB Chain and Avalanche networks.
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Aug 11, 20233 min read

Dear Bankless Nation,

It may be L2 season on Ethereum, but there are still plenty of alternative blockchains networks worth tracking.

Today, we're sharing new Bankless Guides to the Cosmos, BNB Chain, and Avalanche networks. It's been a rough year for all of their native tokens and TVLs relative to ETH, but could they bounce back? Click through below to learn 🫡

- Bankless team

The Bankless Guide to Cosmos

Cosmos is a decentralized network of interoperable and independent blockchains. Unlike singular chains like the Ethereum mainnet or alternative "layer 1" (L1) chains such as BNB Chain or Solana, Cosmos employs the Inter-Blockchain Communication Protocol (IBC) to enable seamless token and data transfer among its connected Cosmos chains.

In this way, the Cosmos network relies on a "layer zero" (L0) model, as the project provides a framework for creating custom-tailored blockchains that are interoperable with other Cosmos-powered chains. Apps can deploy as "appchains," or application-specific blockchains, rather than directly onto Cosmos as they would on an L1. All of these chains are supported by the underlying Tendermint Core consensus engine, which ensures the wider network's security and efficiency.

At the heart of the Cosmos network is the Cosmos Hub, which is the first and foundational blockchain deployed on the platform. In this ecosystem “Hubs,” such as the Cosmos Hub, interconnect “Zones,” which are analogous to shard chains in the Ethereum ecosystem. The Cosmos Hub itself is a proof-of-stake (PoS) blockchain secured and governed by ATOM token holders, making it directly comparable to, and usable as, L1 infrastructure...

Read on for a detailed history, token breakdown and steps to getting onboarded!


The Bankless Guide to BNB Chain

Developed by cryptocurrency exchange giant Binance, BNB Chain — a.k.a. “Build N Build Chain” — is a blockchain for facilitating apps powered by smart contracts. Binance has fostered the network to function as a gateway between centralized finance (CeFi) and decentralized finance (DeFi) for its global user base.

As for its fundamental parts, BNB Chain consists of two interconnected blockchains: the BNB Beacon Chain (BC) and BNB Smart Chain (BSC). The former facilitates staking and governance processes, while the latter is compatible with the Ethereum Virtual Machine (EVM) and supports the smart contracts that underpin Binance’s DeFi scene.

While the development around BNB Chain has been fairly centralized to date, that hasn’t stopped the network from taking on a life of its own and becoming one of the most popular blockchains in the world...

Read on for a detailed history, token breakdown and steps to getting onboarded!



The Bankless Guide to Avalanche

Avalanche is a proof-of-stake (POS) blockchain developed by Ava Labs, designed to provide a scalable and decentralized environment for DeFi applications, digital assets, and smart contracts.

At the core of the chain is its “Primary Network,” which is managed by the staking of AVAX tokens and underpins all of Avalanche’s in-built blockchains. Around this foundation revolve three other primary components: the Contract Chain (C-Chain), the Exchange Chain (X-Chain), and the Platform Chain (P-Chain).

The C-Chain is compatible with the Ethereum Virtual Machine (EVM) and executes smart contracts, the X-Chain is responsible for creating and trading digital assets, such as tokens and NFTs, and the P-Chain manages validators, staking, and the creation of new subnets, i.e. custom subnetworks.

Read on for a detailed history, token breakdown and steps to getting onboarded!


Action steps

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.

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