Cosmos: 2023 Outlook @ ETHDenver
Here are some insights from the “Cosmos: 2023 Outlook” talk with all the Cosmos OGs at the Interop Summit at ETHDenver2023. The speakers include:
Zaki Manian from Sommelier Finance.
Sunny Aggarwal from Osmosis.
Rebecca Liao from Saga.
Akash Khosla from Evmos.
Thyborg from Informal Systems.
1. Challenge of Cosmos
Newer stack than EVM. EVM has more docs & toolings and is easier to deploy & bootstrap.
Lack of Liquidity.
Native wallet integration & NFT support.
NFTs on Cosmos are left behind versus Ethereum & Solana.
IBC competition from other blockchain communication standards.
2. Principles of IBC protocol
There is no central point of failure. Example: If Axelar (a blockchain for interchain message passing) fails, the whole network will be offline.
Permissionless connectivity.
Well-designed software abstraction ⇒ Easy to build Dapps on top of it.
3. On IBC adoption by EVM chains
Other bridging solutions work at the application (VM) layer & don't care about the consensus. They just need to run a full node on that chain ⇒ Scale much faster.
IBC works at the consensus layer & requires light client proofs to work. These light clients need to be built one by one. Some teams are currently working on the IBC implementation for Ethereum now.
4. Framework to build Appchains
Cosmos SDK
Substrate by @Polkadot
OP stack by @optimismFND
Hypersdk by @Avalancheavax
EVM+ from @Arbitrum
Supernet by @0xPolygon
Rollup-as-a-service
⇒ Main challenger of the Cosmos SDK: the OP stack.
5. Working with Polygon vs. Cosmos
Cosmos have outstanding tech.
Polygon is very Go-to-Market driven. They try to find what the market needs and develop their technical narrative.
Saga help Polygon automate the Supernet (Appchain) with Cosmos stack & IBC.
6. On onboarding builders to Comos
With various security approaches being developed in the Comos ecosystem right now:
ICS from the Cosmos Hub
Mesh Security proposed by the @osmosiszone team
Shared Security from @CelestiaOrg
Evmos SDK by @EvmosOrg
⇒ It’s easier to onboard builders since they won't need to spin out a standalone chain for their Dapp.
7. How to bring more liquidity to Cosmos?
Native stablecoin: $USDC & $USDT.
Make the best UX for average traders & bridging assets ⇒ Liquidity will follow.
Ethos, vibe & community (i.e., Canto).
9. On dealing with Institutions
Build a robust and flexible stack, sell to web3 native audiences first, and ensure you win at home. It needs at least 18 months to sell to Institutions. During that period, newer tech may emerge already.
10. On wallets
Osmosis will support Metamask & support as many wallets as possible.
Need to be explored beyond financial applications. Saga is focusing on gaming and the cultural aspect: NFTs.