Curious J ⚛️ (💙,🧡) Profile picture
Mar 27 33 tweets 15 min read Twitter logo Read on Twitter
#EVM & #IBC are two of the most important innovations in crypto. EVM has gained the most adoption as an execution layer, IBC seeks to gain the most adoption as an interoperability layer for blockchains. In this thread we will discuss which has more potential...🧵 Image
First, wtf is EVM?
Ethereum Virtual Machine is a critical component of the Ethereum network and has become a dominant force in the world of crypto. Devs can write and deploy code on EVM compatible blockchains, powering decentralized applications and automated financial contracts. Image
It has largely contributed to the success of many EVM compatible chains such as BSC, Avalanche, Polygon, and Fantom. Leveraging EVM have had significant benefits from it due to smart contract protocols porting their dapps on these chains due to being faster & cheaper. Image
It is no secret that EVM's importance in the DeFi space has helped to cement Ethereum's position as the leading ecosystem in the crypto world. It is estimated that over 90% of smart contracts run on EVM. source: https://app.artemis...
According to @DefiLlama, the total value locked (TVL) in DeFi protocols built on EVM-based chains sit at an estimated total of $52 billion recently (Tron exclused), which is around 86% of all DeFI TVL. This showcases the immense growth and adoption of DeFi on EVM-based chains. Image
While EVM has been the dominant virtual machine, it's general purpose build without parallel execution has led to several limitations, such as processing only 270 swaps per second. This isn't sufficient to scale to billions of users. medium.com/momentum6/the-…
EVM's limitations have led to other blockchains building their own Virtual Machine, such as Fantoms upcoming FVM, Cosmos's CosmWasm, and even modular chains & roll ups leveraging other virtual machines such as @EclipseFND using Sealevel VM.
In fact, the limitations of Ethereum along with inspiration of Cosmos appchains have given birth to a new paradigm shift in crypto called modular blockchians, separating execution, settlement, consensus & data availability.
This brings us to Inter Blockchain Communication, which has been the most reliable interoperability protocol in the DeFi space thus far. #IBC enables Cosmos appchains to communicate and transact with each other in a decentralized and trust-less manner. medium.com/the-interchain…
Thanks to IBC, Cosmos ecosystem has been described as the "internet of blockchains," enabling seamless communication between different blockchain ecosystems & allowing users to access liquidity and new assets across different blockchain ecosystems.
As of March 2023, there are 54 IBC-enabled chains on the Cosmos ecosystem with a total market capitalization of over $10 billion, and 4.3 million monthly #IBC transactions. This highlights the immense potential of IBC in bridging different blockchain ecosystems. ImageImage
#IBC has also recently enabled cross-chain communication between Cosmos and several other blockchain ecosystems, including Near, Polkadot, and soon Solana.
This has opened doors for new opportunities for DeFi developers and users to access liquidity and new assets across different blockchain ecosystems, leveraging IBC to make defi across chains become more interoperable and more composable.
So which has more potential?
Comparing the two, IBC has far more potential in my opinion as it will also integrate other non cosmos EVM chains as well. This means that Cosmos will be able to eventually connect with virtually any blockchain ecosystem.
The ability to connect and integrate with many chains expanding beyond cosmos increases the value and utility of the Cosmos ecosystem and the $ATOM & other IBC tokens as more liquidity will flow into the ecosystem.
Other advantages?
Due to the inherent nature of Cosmos thanks to sovereign appchains & IBC being essentially chain agnostic, the cosmos ecosystem is fundamentally more decentralized on core aspects. The Cosmos onchain governance is arguably the most involved community in crypto.
There have been multiple occasions where participation has been north of 80% and many controversial takes have delayed or outright halted significant developments such as ATOM 2.0. Cosmos drama is a feature, not a bug, which is a side effect due to how outspoken the community is.
While Eth has Layer 2s that leverage it's security, they essentially run on a sequencer and are ultimately dependent on Eth to operate. Cosmos on other hand is currently experimenting with their own methods to help secure the ecosystem.
One of the most important features to come to Cosmos hub is its replicable security model. This means that smaller appchains can leverage the security of Cosmos hub by using the same validator set, making them equally secure as the Cosmos hub itself.
This is a unique feature of Cosmos and one that finally gives $atom a direct source of value accrual within the #IBC ecosystem, as it previously there have been many who didn't understand the value proposition of this token.
Osmosis is integrating it's own version of interchain security called mesh security, allowing cosmos chains to simultaneously receive security and provide security to the corresponding chains, creating a mesh network of chains helping secure each other.
Terra is also integrating it's own version called Terra alliance. This will leverage interchain staking to form economical alliances between IBC chains.
Cosmos EVM is also gaining traction, with several EVM-based chains like Canto, Evmos, Kava, Cronos, and upcoming chains like Berachain. Cosmos EVM chains are currently responsible for nearly 80% of all Cosmos TVL. Image
$canto gave us a glimpse of the potential of Cosmos EVM as it went from 60mil to 200mil in just a few months. $bera chain is looking ripe for success, more here: Image
It's also important to discuss and give credit to @EvmosOrg as it pioneered Ethermint. Current EVM chains are built thanks to it. $EVMOS has been very active with development recently as well.
Beyond EVM, many app-specific non-EVM chains are onboarding to the Cosmos ecosystem, including DYDX, Sei Network, Babylon Chain, Archway, Neutron, and Duality. This demonstrates the growing interest and development activity within the Cosmos ecosystem.
Why so much dev interest?
The Cosmos SDK makes it easy for devs to build custom appchains, and the interoperability provided by IBC and the security provided by the Cosmos Hub make it an attractive choice for developers. Cosmos eco is catching up to Ethereum in development. Image
In fact not just catching up but outpacing it on some aspects. Recently Osmosis recently flipped Uniswap in active developers, the largest dex in crypto.
In addition, the expansion of the #IBC outside of Cosmos and EVM development in Cosmos will attract more liquidity and developers, thus increasing the value of Cosmos chains and thus making this ecosystem become a hot spot for all things defi.
As more Cosmos appchains onboard & IBC expand beyond Cosmos, we can expect to see significant value driven to the Cosmos ecosystem especially tokens such as $atom, $osmo, $strd and many others that other #IBC protocols of product market fit.
Overall, Cosmos IBC and EVM are driving significant value to the world of crypto. With the growing interest in DeFi and the expanding use cases for blockchain technology, the future looks brighter for IBC, as it shows much more untapped potential meanwhile EVM has limitations.
Please like & retweet if you enjoy, and follow these peeps for the best cosmos content as I feel some are underrated:
@interchainriley
@The_BendyOne
@Thyborg_
@youssef_amrani
@Flowslikeosmo
@CCosmonaut_
@N1C0_B_
@cosmoscoffeeDFI
@CosmosClub_
@maria_dedotfi
@sooper__
As always please like, retweet and follow me or comment below & roast me on anything I missed out. We’re here to learn after all…

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More from @Curious__J

Jan 22
As AI is picking up steam, let's talk about infrastructure plays such @RenderToken: the leading provider of decentralized GPU based rendering solutions. $RNDR 🧵
1/ Founded in 2016 by Jules Urbach, CEO of OTOY, Render is the next step in his dream of the open metaverse.
With headquarters in Los Angeles, CA and a team based around the globe, the Render Network and those behind it have been growing from strength to strength in the years since its establishment.
Read 19 tweets
Jan 21
0/ While AI is trending, $ocean doesn't quite fit the narrative but it most certainly stands out. Let's try understanding the revolutionary impact of Ocean Protocol - A Decentralized Data Marketplace. $ocean...🧵
1/ Have you ever wondered about the true value of your personal data and how it's controlled by a select few? Ocean Protocol is bringing about a paradigm shift in the way we think about data accessibility and efficiency for researchers, data analysts, and AI developers.
2/ So, how does it work?
Publishers can publish their data for free on the Ocean Market, creating a "data NFT" containing metadata on the dataset and its publisher. This NFT acts as a tradable "right" to revenue earned from the dataset.
Read 19 tweets
Jan 21
1/789 $atom is and will always be the bluechip/flagship/ $btc coin of the cosmos ecosystem. Without cosmos hub there would be nothing.
2/789 But what about $btc entering cosmos? $btc doesn’t have governance, the community to decide the future of the hub, the ability to attract so much interest. Drama is a feature. $btc is $btc. $atom is $atom.
3/789 The potential for $atom is much greater on an investment scale because math. $atom is a testament to #ibc and now it’s up to us to push it forward. Less bitching, more involvement.
Read 5 tweets
Jan 11
0/ There is one project in the entire crypto space that's a paradigm shift in the making involving cross chain defi and that is @THORChain. $Rune is one of the most fundamentally bullish altcoins of 2023. Let's expand on my thesis......🧵
1/ 2022 was full of bridge exploits, implosions and centralized exchanges collapsing due to lack of trust. To combat these issues, there is an on-chain version that lets you swap and earn yield off your NATIVE coins within your wallet without any bridge risks? That is Thorchain.
2/ What is it?
Thorchain is a liquidity protocol designed to essentially link all native blockchain assets in a decentralized market through its cross-chain bridge and ongoing liquidity pools that are rewarded and protected by validators using $rune token.
Read 36 tweets
Sep 17, 2022
@cosmos $atom is finally getting noticed but we have really just begun, some of the most promising #ibc chains have yet to be released, here’s 5 upcoming cocmos chains to be fundamentally bullish on…⬇️
1. @babylon_chain . A Cosmos Sdk which chain can fundamentally change PoS. PoS chains rely on off-chain social consensus to prevent these attacks so it takes 21 days to unbond as a checkpoint, this is somewhat of a fail safe mechanism for the inherent risks of PoS.
Humans are also unreliable & unpredictable. Babylon enhances Cosmos chains security with Bitcoins, which can reliably decide in a few hours vs weeks. It is a way of checkpointing proof of stake into proof of work, and thanks to IBC virtually all IBC enabled chains can use it.
Read 20 tweets
Aug 27, 2022
Confused about $atom's value accrual?
Allow me to explain it in a thread.....🧵 Image
1.1 In order to establish a case for atom's value accrual, it's important to address the elephant in the room, narratives. Narratives were the main reason we had an altcoin boom in 2017, with the promise of these coins and chains being revolutionary tech that changes the world..
1.2 What gave $xrp, $ada their supid high evals in 2017? It was simple narrative of them being the next best thing. As @Evan_ss6 said: "L1s are not inherently valuable

They are only valuable insofar as they:
1) are monies
2) capture revenue from blockspace demand and/or MEV"
Read 26 tweets

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