Built using the Cosmos SDK, Evmos is a proof-of-stake (PoS) blockchain that facilitates value transfer between Ethereum and the Cosmos ecosystem. Web3 developers can use Evmos to deploy Ethereum smart contracts onto application-specific Cosmos blockchains with minimal friction. Furthermore, the Cosmos Inter-Blockchain Communication protocol (IBC) enables Evmos to connect decentralized applications (dapps) on multiple blockchains and benefit from shared liquidity and value transfer.
Evmos uses the Tendermint Core Byzantine fault tolerance (BFT) consensus mechanism to enable developers to separate the network and application layers of blockchains. By combining the best parts of Ethereum Virtual Machine (EVM) development and Cosmos development, Evmos also allows developers to build multi-chain dapps faster and more efficiently. Also, the native EVMOS token plays a crucial role in securing the network. Plus, the reward structure for the EVMOS token incentivizes validators and developers.
Herein, we’re going to dive deep into the Evmos ecosystem. We explore the technology powering the layer-2 (L2) solution. Plus, we’ll discuss the use cases for the native EVMOS token. Furthermore, we look at how Evmos connects dapps on Ethereum and Cosmos. Also, we explore why blockchain interoperability is so important and how it can help to promote blockchain adoption.
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The Cosmos Ecosystem
Before we dive in and explore Evmos, let’s first take a look at the Cosmos ecosystem. Cosmos is a series of independent blockchain networks that interconnect with each other using Cosmos’ Inter-Blockchain Communication (IBC) protocol. The IBC protocol connects decentralized applications (dapps) on multiple blockchain networks and allows them to share liquidity and resources.
The Cosmos software development kit (SDK) provides developers with a comprehensive suite of building blocks and components for making bespoke blockchain networks quickly and securely. Also, these blockchains are inherently interoperable. This makes it easier to prevent the concentration of power that often results in siloed databases and monopolies.
Furthermore, Cosmos enables developers to build autonomous application-specific blockchains that can scale with ease. As such, the Cosmos ecosystem is home to a diverse range of gaming applications, open financial protocols, NFT marketplaces, and many other Web3 applications. All of these applications benefit from the high throughput and low transaction fees afforded by Cosmos. Not only does this lower the barrier to entry into Web3, but it also helps blockchain networks scale sustainably.
What is Evmos?
Evmos is a highly scalable PoS blockchain built using the Cosmos SDK and the Tendermint Core consensus engine. It is fully interoperable with Ethereum and enables developers to run the vanilla Ethereum framework as an application-specific Cosmos blockchain. Accordingly, developers gain access to the necessary features of Ethereum while using the Tendermint PoS consensus mechanism. Also, thanks to the use of the Cosmos SDK, users can exchange assets throughout the Cosmos ecosystem via the Inter-Blockchain Communication protocol (IBC). Plus, Ethereum developers can use common Ethereum tooling to create smart contracts that they can deploy on Cosmos without friction.
Furthermore, Evmos users benefit from lightning-fast transaction speeds, high throughput, and minimal fees. As such, developers can scale dapps quickly and reliably. Also, developers can create Web3 apps on Cosmos with all of the features of an Ethereum dapp. Plus, they can do so with minimal fees and network congestion.
The technology powering the Evmos network evolved from the Ethermint proof of concept, which originated in 2016. Ethermint was created to enable developers to deploy Ethereum smart contracts on Tendermint. The vision is still the same. Evmos aims to give Tendermint developers the same seamless experience they enjoy when using common Ethereum tooling. It achieves this by providing an open-source library that enables EVM compatibility on a Cosmos chain.
The Cosmos Software Development Kit (SDK)
The Cosmos software development kit (SDK) is an open-source framework that enables developers to build multi-asset public PoS blockchains and permissioned proof-of-authority (PoA) blockchains. Moreover, the Cosmos SDK aims to empower blockchain developers by enabling them to build bespoke, interoperable blockchain networks. This is made simple thanks to its composable, modular framework. Also, because the Cosmos SDK is open source, anyone can create their own modules or use those of other developers.
Most blockchains built using the Cosmos SDK are application-specific. Application-specific blockchains act as an alternative to smart contract blockchains, as they can generally provide higher levels of flexibility, sovereignty, and performance. While smart contracts are great for automating simple agreements, they can be limiting when it comes to scaling high-frequency, complex transactions. However, application-specific blockchains are built for a single purpose, allowing them to excel at one job.
The Cosmos SDK comes with the Tendermint Core consensus engine by default. Tendermint Core is the longest-standing “mature” implementation of a Byzantine fault tolerant (BFT) consensus mechanism, which allows nodes to agree on common values relating to various processes throughout a network, even when processes fail.
Inter-Blockchain Communication Protocol (IBC)
Cosmos’ Inter-Blockchain Communication protocol (IBC) is an open-source interoperability protocol for “communicating arbitrary data between arbitrary state machines”. Established in March 2021, IBC processes more than 1.5 million transactions per month on over 20 blockchain networks. IBC allows blockchain networks to speak to each other and facilitates the exchange of value between them, and consists of two layers.
First, the transport layer (TAO) provides the infrastructure required for creating secure connections between blockchains. This layer also facilitates the authentication of data packets. Second, the application layer defines how these data packets should be interpreted and packaged between chains.
IBC enables independent blockchains to “trustlessly” communicate using data packets on dedicated channels connected by smart contracts and relayers. Some of the most common utilities for IBC are for building cross-chain dapps, transferring tokens between chains, oracle data feeds, and interchain accounts. Moreover, IBC enables decentralized finance (DeFi) protocols to benefit from cross-chain liquidity.
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The EVMOS Token
The EVMOS token plays various roles throughout the Evmos ecosystem. It is essential for paying transaction fees when interacting with dapps. Also, Evmos validators can earn EVMOS token rewards by propagating new blocks and securing the network via PoS consensus. In addition, holders of the EVMOS token can vote on proposals to determine the future direction of the project via on-chain governance. This includes the allocation of funding and protocol parameters.
At the time of writing, the EVMOS token is trading at around $1.84, with a market cap of $372 million, according to CoinGecko. Further, it has a maximum supply of one billion and an initial supply of 200 million tokens. Also, the EVMOS token has a planned annual inflation rate of 150% by year one and 450% by year four.
Although Evmos has not fully implemented on-chain governance, validators will most certainly play a significant role in this soon. Furthermore, it is anticipated that Evmos will use similar governance parameters to Cosmos. Also, one EVMOS token will enable holders to cast one vote in update proposals.
The Evmos network consists of two validator types. These types are validator nodes and full nodes. Validator nodes verify transactions and propagate new blocks onto the blockchain. On the other hand, full nodes maintain a full history of every transaction taking place on the Evmos blockchain and retrieve on-chain data when requested. Validators are required to operate a full node and a validator node.
Furthermore, the Evmos ecosystem uses a set of the 150 highest staking validators to incentivize staking and securing the network. Also, this mechanism aims to increase the value and scarcity of the EVMOS token as it is removed from circulation. Validators are selected according to their overall stake size, including any bonded or delegated stakes.
Moreover, anyone can delegate their stake to an Evmos validator to secure the network and earn a passive income, a portion of which goes to validators as commission. Validators may lose their stakes if they display behaviors that the network deems unfit. This includes the double signing of transactions, downtime, and inadequate security.
Why is Blockchain Interoperability Important?
Many experts agree that blockchain interoperability is essential for the mass adoption of Web3. When blockchains interoperate with each other, they can share data and value. Often, blockchain networks use proprietary assets that cannot be transferred to other networks. As a result, this can inhibit the ability of these networks to reach their true potential.
Interoperability allows blockchain networks to plug into each other, share assets, and create novel, customizable protocols that leverage the liquidity of multiple blockchains and decentralized applications (dapps). You can think of blockchain interoperability as “financial building blocks”. Like LEGO bricks, interoperable Web3 protocols can be connected via smart contracts and enable the frictionless transfer of data between previously siloed networks.
Not only does interoperability enhance the user experience, but it also has the potential to increase blockchain adoption sector-wide. Furthermore, interoperability helps to maximize decentralization throughout the Web3 landscape by increasing the number of validators required to process transactions.
There are multiple methods for accelerating blockchain interoperability. For example, many layer-2 scaling solutions promote cross-chain interoperability. Also, oracles play an essential role in increasing interoperability between networks. Oracles are used to bring real-world data onto the blockchain. When multiple networks use the same oracles, it helps to achieve consensus about data integrity throughout the Web3 space. Plus, it removes much of the friction from cross-chain data transfer, allowing multiple blockchain networks to “sing from the same hymn sheet” when syncing data across multiple chains.
In addition, many prominent Web3 projects favor token bridges for cross-chain activities and token swaps. Token bridges allow users to convert assets from one native token standard to another. For example, you could swap tokens from Ethereum’s ERC-20 standard to work on BNB Smart Chain (BSC) using a token bridge to convert your tokens to the BEP-20 standard. In the future, we can expect cross-chain bridges to play a critical role in expediting cross-chain value transfer and connectivity.
Exploring Evmos (EVMOS) – Summary
Evmos is at the forefront of inter-chain connectivity and plays a crucial role within the Cosmos ecosystem. Also, the growing demand for cross-chain interoperability is helping to mitigate the high transaction fees associated with Ethereum and allow developers to benefit from the industry-leading smart contract blockchain without constraints. Ethereum has the largest development community of any smart contract blockchain. However, the EVM compatibility Evmos provides is helping to share value between blockchains that were previously unable to communicate efficiently.
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