In -depth understanding of the value potential of Evmos: Cosmos and EVM ecological settlement center

In the future, Evmos may not only be an EVM-compatible chain in the Cosmos ecosystem, but also become a settlement center for the Cosmos ecosystem and the EVM ecosystem.

  • Evmos connects the two most important public chain ecosystems, namely Cosmos ecosystem with interoperability and EVM ecosystem with huge development resources and user groups, not only Ethereum, but also all EVM compatible chains (Polygon, BSC, etc.) , which means that all EVM-based assets and decentralized applications can be connected to the Cosmos ecosystem through Evmos.
  • Evmos is fully compatible with EVM while integrating many of the advantages of Cosmos, including: 1) the high throughput and instant certainty of transactions provided by Tendermint, 2) the horizontal scalability provided by IBC, 3) and future cross-chain Account (ICA).
  • Modularization has become a new paradigm to solve the impossible triangle problem of public chains, and Evmos is cooperating with Celestia to develop Cevmos, aiming to build a more efficient settlement layer and lay the foundation for future ecological evolution and token value capture.
  • In terms of economic mechanism, Evmos provides more balanced and long-term incentives for multi-party roles in the ecosystem: 1) Gas fees will be shared by application developers and validators, 2) 25% of block rewards are used to motivate users of high-quality applications, 3) Provide 50% transaction fee rebate for IBC relayer.

1. Evmos – the EVM Hub of Cosmos

The emergence of Cosmos has broken the monolithic chain pattern represented by Ethereum. Decentralized applications can preempt blocks with other applications without relying on the security of the entire network, which is affected by slow performance and poor scalability. Compared with a complete blockchain, Cosmos proposes the concept of a multi-chain universe. Each “Zone” is a sovereign blockchain and enjoys complete autonomy. At the same time, through the Cosmos SDK, deploying a sovereign chain is like deploying a sovereign chain. As simple as a smart contract, developers do not need to design a complex consensus mechanism, and can directly use Tendermint Core’s POS+BFT consensus to obtain effective security guarantees.

In terms of cross-chain communication, Cosmos has designed the IBC protocol, which provides a general cross-chain protocol standard so that cross-chain transactions can be reliably and reliably forwarded between multiple Zones. Compared with monolithic chains such as Ethereum, Solana, and BSC, cross-chain interoperability is a design from the source of Cosmos. It is efficient, whether it is the amount of development work or the increase in governance difficulty caused by involving cross-chain, one-time deployment of the project, you can enjoy the interoperability between ecological projects.

Therefore, with these unique designs, the Cosmos ecological project is given more autonomy, flexibility, and better performance. For example, due to the adoption of Tendermint Core’s BFT consensus mechanism, the blockchain has no concept of pending state. , the submitted transactions can be quickly confirmed, reducing the occurrence of MEV.

On the other side of the industry map, a huge developer ecosystem is growing – the Ethereum Virtual Machine (EVM). EVM is being compatible with more and more public chains, making it the strongest developer base in the entire crypto industry. In addition to Ethereum as the core, Ethereum killers such as Polygon, BSC, Avalanche, Fantom, etc. took the lead in implementing compatibility with EVM and received rapid market recognition. People found that compared with other public chains, it claims to have a unique design, fast transaction processing speed, etc. It is compatible with EVM and can quickly acquire developers and users in the Defi bull market. Near launched the EVM-compatible Aurora, Polkadot added Moonbeam, and so did Arbitrum and Optimism in the Layer2 camp.

The reasons why EVM is so popular mainly include that it uses a programming language that developers are familiar with (Solidity), has a large number of developer tools that make writing and testing smart contracts easier, and blocks powerful functions for users. Chain browser Etherscan, and most importantly, Metamask — the most popular front-end wallet in the entire blockchain industry, with tens of millions of users. For these reasons, projects on the EVM-compatible chain can be quickly replicated without rewriting the code for multi-chain deployment, which undoubtedly promotes the innovation and development of the entire industry.

However, the interoperability between the Cosmos ecosystem and EVM-based applications has not been well resolved in the past, and the two ecosystems are basically in a state of separation. Cosmos failed to undertake the huge spillover value of Ethereum, while the emergence of Evmos opened up the this gap.

The predecessor of Evmos was Ethermint. The original goal of Ethermint was to introduce the scalability of the Tendermint consensus protocol into Ethereum and become a Layer 2 solution. However, this goal has been achieved by Rollup such as Arbiturm. Therefore, Tharsis Labs, which is responsible for developing Ethermint, decided to upgrade to Evmos. —— An EVM-compatible chain developed based on the Cosmos SDK, and can achieve full interoperability with the Cosmos ecosystem through the IBC protocol. Evmos’ mission, as its name suggests, is to be the EVM hub of Cosmos.

2. Fusion and evolution of two genes

Evolving from Ethermint, Evmos aims to serve as a central hub linking application specific Ethermint chain, Cosmos Chain, Ethereum mainnet and other EVM compatible chains. The inheritance of the two excellent genes of Cosmos and EVM gives Evmos extraordinary ease of use, interoperability and compatibility, coupled with Evmos’ more balanced and sustainable design concept in the economic model, to provide developers and users with more convenience and affordability.

Cross-chain interoperability enabled by Cosmos

As a blockchain developed based on the Cosmos SDK, Evmos enjoys many advantages brought by the Tendermint consensus and the IBC protocol.

High throughput and low fees brought by Tendermint consensus

After actual measurement, the Tendermint consensus blockchain can reach a TPS of 1000/s; according to the data on July 16, the gas fee for Evmos to complete a transaction is as low as 0.001 US dollars, and the block time is about 2s.

Instant certainty of transactions

Ethereum does not achieve finality, which is related to how it works: the security of PoW blockchains represented by Bitcoin and Ethereum will increase over time, and the longer a block exists, the more secure it is. The probability of being reversed will be lower, so Ethereum’s finality (Finality) is always a probabilitic finality (probabilitic finality). And because of the Tendermint consensus algorithm, Evmos can have the property of instant finality. This is because Tendermint adopts the Byzantine fault-tolerant algorithm. As long as more than one-third of the verification is honest, the block will not be Being forked, users can be sure that once a block is committed, it is final.

Horizontal scalability brought about by the IBC protocol

The IBC protocol is one of the best designs in the Cosmos ecosystem. This protocol provides a common cross-chain protocol standard, enabling cross-chain transactions to be securely routed and forwarded between multiple zones. According to the data of mapofzones.com, the 30-day IBC transaction volume of Evmos has reached more than 25 million US dollars, and the monthly active addresses of transfers have exceeded 30,000. 14 zones have established IBC communication with Evmos, including Cosmos’ most mainstream AMM Osmosis, cross Chain bridge Gravity Bridge, NFT application chain Stargaze, etc. For more advantages brought by the IBC protocol, we will explain in the ERC20 module below.

Expected Interchain Accounts

As the next step in the evolution of cross-chain interoperability, Interchain Accounts enable native composability in cross-chain transactions, which will allow chains to not only exchange data, but also write state.

This means that the blockchain in the Cosmos ecosystem can access applications of another chain and perform any operations inherent in that chain, that is, users can perform transactions on B on chain A (such as pledge, vote, exchange tokens, etc. ),vice versa. This will significantly improve the user experience and bring greater composability to the Cosmos ecosystem.

Cosmos Hub, Sommelier and Osmosis will be the first to implement the inter-chain account module, and we can expect Evmos to support cross-chain accounts.

EVM fully compatible

Evmos allows Solidity smart contract developers to enjoy the same developer experience as developers on Ethereum, and is fully compatible with Json-RPC for interacting with existing Ethereum clients and tools. Evmos is not only compatible with Ethereum, but also includes all EVM compatible chains (Polygon, BSC, etc.), which means that all EVM-based assets and decentralized applications can be connected to the Cosmos ecosystem through Evmos.

ERC20 Moduel

The ERC20 module is an important part of the Evmos architecture, which allows Cosmos origin tokens (such as $ATOM, $OSMO) and ERC-20 assets to be mutually convertible in a trustless and on-chain manner. The significance of this function is that the operating environments of Cosmos and EVM are incompatible by default, ERC-20 assets cannot enter the Cosmos ecosystem, and cosmos tokens cannot be used by applications developed based on EVM. For example, you cannot transfer $ATOM across chains Switch to other non-Cosmos chains, or blockchains that do not support the IBC protocol.

By using the ERC-20 module, developers can create smart contracts on Evmos whose tokens can be used in the Cosmos ecosystem through the IBC protocol. For example, stable coins including USDC and USDT can be accepted by Osmosis to create liquidity pools for users to trade. Before, the only stablecoin counterparty on Osmosis was UST, which caused many users to suffer losses with the failure of UST.

Additionally, through the ERC-20 module, Cosmos genesis tokens can be converted into ERC-20 assets and used by smart contracts on Evmos. The ERC-20 module creates a token pair by recording the association between an ERC-20 token address and a Cosmos token. This trading pair allows users to convert between ERC-20 tokens and Cosmos tokens.

In addition, this process is done through the governance module built by the Cosmos SDK. In the governance proposal that ended on July 12, 2022, $OSMO became the first Cosmos genesis token to be whitelisted by governance , after this, users can convert $OSMO to ERC-20 version (i.e. $OSMO can appear in Metamask’s token list) and in Evmos Defi protocols such as Diffusion, NFT marketplace and others based on ERC-20 used in the developed protocol. $ATOM will be the next token to be whitelisted, and users who hold $EVMOS tokens can initiate proposals to support the ERC20 assets they need.

Multi-balanced Economic Incentive Model

Most public chains only use validators, or miners, as rewards in the distribution of tokens. There is no problem with this design, because it can maximize the security and decentralization of the network. degree. Evmos proposes different solutions in this design, trying to introduce more roles into the economic system to create a more balanced and self-sustaining ecology.

Evmos proposed that for the Layer 1 blockchain, the role of developers and users in the ecosystem is as important as that of validators, while the incentives for developers and users of most public chains are currently ignored. Validator incentives constitute the underlying security foundation for network prosperity, and incentives for developers and users can help the ecosystem to generate prosperous economic activities. Therefore, for developers and users, Evmos has separately designed The dApp Store model that allows application developers to obtain a portion of the gas fee, and the Deferred Gas Rebates model that encourages users to use the network and gives gas fee rebates.

The dApp Store

The dApp Store is a model similar to the app store. The developer and the app store operator share the application revenue. The only difference is that the economic behavior generated by the application in the blockchain is a continuous state. This source of income is the gas fee. According to the original design of Evmos, application developers and validators share the gas fee in a 50/50 ratio, and this ratio can be adjusted through governance. At the same time, in order to prevent fraud and cheating, not all dapps can obtain the fee share, and dapps also need the community to obtain this right through governance. Evmos hopes that this design can more effectively motivate developers and create a sustainable income for them, and at the same time, for the ecology, it can reduce the risk of project parties selling tokens in order to obtain income.

Deferred Gas Rebates

Deferred Gas Rebates is a user incentive function completed by community governance. In Evmos’ Token Distribution, 25% of the block reward will enter a user incentive pool, which will be used by the community to vote on how to distribute. One of the effective incentives is that the community votes for popular dapps, and the reward pool Tokens will be returned to users of the protocol in an airdrop. Likewise, while incentivizing users to use the network, it can also incentivize developers to build better products, thereby generating a positive feedback effect.

IBC Relayer Fee Rebates

In addition, another unique design in the Evmos economic model is the IBC Relayer Fee Rebates. In the ICS (Interchain Standards) published by Cosmos, there is no incentive mechanism for Relayer, which actually creates a problem for the transmission of IBC data. Because as a Relayer that undertakes the task of transmitting IBC data packets, it needs to pay certain software and hardware costs, server costs, and transaction fees. The current role of Relayer is mostly held by the stakers at the core of the ecosystem, but this is not a long-term solution. Without effective incentives, the number of Relayers will be greatly limited, which will lead to instability in the IBC transmission service. Therefore, Evmos has designed a 50% rebate on transaction fees for Relayers who provide IBC transfer services. In order to thank the pledgers for their contributions regardless of the cost, and to encourage more Relayers to provide services.

3. Expansion of modular blockchain – Cevmos

For a long time, the impossible triangle (that is, scalability, security, and decentralization cannot be satisfied at the same time) is the ultimate problem that all public chains are committed to solving. The limitations of the monolithic chain are difficult to break, and decoupling the data layer, settlement layer and execution layer has gradually become a more recognized solution. Evmos not only integrates the advantages of cosmos and EVM, but also has a layout in the modular direction.

Layer 2 is an attempt to decouple the execution layer from the settlement layer, but the current rollup still uses the Ethereum main chain for settlement, and the Ethereum main chain is used by many applications as the execution layer, which makes L2 also face strong challenges. Resource competition has not achieved a very good user experience. In the planning of Ethereum, sharding will better solve this problem. However, with a heavy historical burden, the implementation of Ethereum sharding still faces many challenges. So are there other solutions? Celestia is one of the representative projects.

Celestia is based on Cosmos SDK and Optimint Tendermint. Unlike other L1s, its only function is to store transaction records and provide data availability (Data Availability) through a consensus mechanism, and other developers can rollups on Celestia. Build your own settlement layer (such as EVM) and execution layer (such as application chain) without designing a consensus mechanism for your own chain.

In -depth understanding of the value potential of Evmos: Cosmos and EVM ecological settlement center

Celestia is partnering with Evmos to launch Cevmos. Cevmos is an open source modular stack that uses Celestia as a data availability layer to provide the foundation for EVM-based applications built on Celestia rollups, which in turn enables efficient EVM-based rollups to run in Cosmos hubs with higher scalability sex and safety.

Additionally, Cevmos will be optimized specifically for rollups. As a result, rollups will not have to compete for gas with non-rollup transactions, resulting in lower fees and better scalability. And new chains built using Cevmos will connect to the Evmos Hub via IBC, leveraging $EVMOS tokens for security and gas.

As a bridge connecting the IBC world and the EVM world, Evmos can bring assets and even applications in the EVM ecosystem into the cosmos ecosystem, so it will surely become an important asset settlement layer in Cosmos. The launch of Cevmos will bring more possibilities to the Evmos ecosystem and the $EVMOS token.

4. Ecological development

The ecological development of Evmos is still in its early stages, but we are very happy to see a comprehensive ecosystem developing, including Defi, NFT, DAO, and more.

Additionally, Evmos is supported by many mature projects based on EVM compatibility. AAVE is one of the typical representatives. Evmos proposes to deploy Aave v3 on the Evmos blockchain to expand lending to Evmos and the larger Cosmos ecosystem. The proposal has been voted on by the Aave community. In addition, Frax, DForce, etc. have also announced that they will support Evmos.

We have summarized some ecological projects on Evmos, but there is still a lot of room for more developers to build.

In -depth understanding of the value potential of Evmos: Cosmos and EVM ecological settlement center

The Evmos team has been working hard to establish partnerships with various protocols to grow the ecosystem. In addition to actively encouraging developers to create dApps, the team has also secured partnerships with several projects, including the cross-chain bridge solution Nomad+Connext, Help Evmos to interact with EVM chains including Ethereum; decentralized oracle UMA; storage middleware Kyve, etc. These tools will facilitate developers to build applications and allow users to get a better interactive experience.

Summarize

We believe that the future will develop towards a blockchain world with a multi-chain structure. The future positioning of Evmos will not only be an EVM-compatible chain in the Cosmos ecosystem, but will also become the settlement center of the Cosmos ecosystem and the EVM ecosystem. Therefore, we are optimistic and are supporting the development of this ecology.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/in-depth-understanding-of-the-value-potential-of-evmos-cosmos-and-evm-ecological-settlement-center/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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