2023 COSMOS Ecosystem List

Author: Harvey, Chanhee Kim Source: XANGLE.io Translation: Shan Ouba, Bitchain Vision

1. Introduction

In 2023, the rapid development of COSMOS ecology, we witnessed the evolution of blockchain technology.COSMOS has attracted many developers and projects with its unique interoperability and modular architecture. It can be said that these characteristics have opened up new horizons for blockchain technology.

In this report, we discussed new projects, major technical renewal and prominent projects in the 2023 COSMOS ecosystem in 2023.We also carefully studied the technological progress and market changes of the ecosystem, as well as how COSMOS redefines the existing blockchain paradigm.

• 0.47 version update

• Upgrade to CometBFT: The renamed COMETBFT is a branch of the consensus engine called Tendermint, which was previously used, and is now officially provided in the COSMOS SDK.The 0.47 version has no major implementation. This update aims to help the use of the TENDERMINT chain to use the COMETBFT.

• Migrate to COSMOS/GogoProto: COSMOS SDK uses Protobuf developed by Google as a message contained in the transaction.However, the existing GOGO/Protobuf is no longer maintained, so it has been split and started in the COSMOS ecosystem to manage the name of COSMOS/GogoProto.

• 0.50 version update

• ABCI 2.0: ABCI is an interface that is responsible for the data exchange between the application layer responsible for the consensus engine and the application layer of different functions on the chain.Consensus engine CometBFT (Tendermint) is responsible for block generation and trading broadcast, which is the process of determining the transaction order.Due to the design of ABCI, there are restrictions on the transaction in the memory pool according to the order of the required order.To overcome this problem, ABCI 2.0 adds a new process called “Prepareprposal” to determine the order of transactions in the memory pool and pass it to CometBFT.

• Optimistic Execution: In the previous COSMOS SDK, all verifications need to be reached before they can execute the transaction and submit the results to the chain.This slows down the execution of the transaction. In order to overcome this problem, it introduces a function called “Optimistic Execution”.This function allows transactions to execute and submit without all verifications, so as to obtain higher transaction throughput.

• SDK module: COSMOS SDK includes various modules for application development.Earlier, the update of each module followed the update version of SDK, so it is difficult to track the update history of each module.In version 0.50, the version control of each module has been changed to independent, which is easier to track historical records.In addition, the data storage model Store and IAVL have been decoupled so that they can be updated separately.

2-2. COSMOS on metamask

Because there are many chains in the cosmos ecosystem, even if the aids are the same, each chain has an independent address.At present, the use of wallets called KEPLR to integrate and manage them, but need to use new wallet applications to use every new chain appearing on Web3, which brings huge fatigue and obstacles to users.

The COSMOS ecosystem recognizes this problem and is developing projects to solve this problem.In this context, Metamask has launched a comprehensive support for SNAP, allowing adding custom functions to Metamask.Thanks to Metamask, now you can create a transaction on a COSMOS -based chain, and the Leap wallet is one of these services.

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Leap Wallet (https://cosmos.leapwallet.io/Portfolio/over/over/over)

In other words, the technical foundation has been established to make users familiar with the EVM -based chain are more likely to be attracted by the COSMOS ecology.

2-3. Multi-virtual machine

Unfortunately, COSMOS SDK does not support a virtual machine for smart contracts.Therefore, several projects have appeared to develop unique virtual machines that are verified and used in other blockchain protocols in other blockchain protocols.People have tried to integrate various virtual machines (such as EVM, WASMVM, Solanavm, Movevm, etc.) and COSMOS SDK, and their support for certain virtual machines is highly appreciated.If more commonly used virtual machines, DAPP developers will be easier to join the COSMOS ecosystem.

3. Project

The following is some of the most interesting and most striking projects that appear in the COSMOS ecosystem in 2023.

3-1. Celestia

The hottest project in the COSMOS ecosystem in 2023 is undoubtedly Celestia.Celestia is a representative modular blockchain project. It divides the function of the blockchain into four parts:

• Execution: the ability to deal with transactions and change chain status.

• Settlement: Verify the transaction of calculating layer processing.

• Data availability: store information from transactions and blocks and ensure that it is always available.

• Consensus: Determine the ability of transaction effectiveness or transactions to be included in the sequence in the block.

In these features, Celestia focuses on data availability.This combines the word “L2”, which has triggered the Rollup boom of the COSMOS ecosystem.To this end, it creates and supports a framework called “Rollkit”, which supports ABCI between Celestia and COSMOS SDK.

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Celestia Rollkit (https://docs.celestia.org/developers/rollkit)

It replaces the COSMOS consensus engine Tendermint (or more precisely, COMETBFT) and allows Celestia and COSMOS SDK to communicate directly.This allows the sovereignty to summarize the sovereignty by aggregating the transaction in one block and using the consensus engine and data availability of Celestia.

3-2. SKIP Protocol

SKIP Protocol is a project with a vision of “sovereign trading infrastructure of sovereign blockchain”.It helps improve the user experience of the sovereign blockchain and transparent transaction processing to prevent malicious MEV and improve the network in quality.

In the improvement of user experience, the project aims to solve the problem of inter -blockchain communication (IBC) protocol.IBC is a protocol for exchanging assets between different chains in COSMOS.In order to transfer assets through IBC, a communication “channel” must be created. Each channel needs to provide a unique ID for each chain connected to it.The figure below shows the channel connecting Axlar and Terra2, representing an example of sending ETH from Terra2 from Axlar.

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SKIP API (https://api-docs.skip.money/docs/ibc-routing-Algorithm)

Assets passed to another chain through IBC will have new denominations, follow the following naming algorithms:

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It should be noted that even if the same assets are sent to the same chain, if the value of the channel or the value of the path is different, its surface will be completely different.In other words, even if the assets in ETH are the same, they will be recognized as different assets in Terra2.This is especially true when the assets are delivered through a complex path, so it is difficult to know which assets are delivered.

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In order to solve these problems, SKIP proposed an optimal routing algorithm to deliver assets in the COSMOS ecosystem and provide a better user experience by determining the assets.

The SKIP protocol also provides various APIs that can be used for COSMOS SDK development blockchain, such as multi -chain trading tracking and Block SDK.SKIP also proposed to the community to include SKIP’s function into the COSMOS SDK to contribute to the development of the ecosystem.

3-3. Other projects

SEI

SEI is positioned as a chain specializing in transactions. Its goal is to become a fast layer1 instead of Rollup, which is also a major trend in the development of blockchain in 2023.SEI focuses on improving chain performance by using various technologies.

Injective

Injective is committed to building a blockchain ecosystem specifically for financial applications.Injective has established a partnership with Figment and Binance, and supports various DAPPs such as Helix and Hydro to join the Injective ecology.

dydx

Dydx is considered the most successful DEX and has been successfully migrated to Layer1 with COSMOS SDK.

Dydx strengthened governance through its own tokens.

Stride

Stride is a liquid pledge protocol similar to Ethereum LIDO.In the COSMOS ecosystem, the liquidity is very difficult, because the assets are scattered on multiple chains.Stride aims to achieve multi -chain liquidity pledge in the COSMOS ecosystem by using ICA (chain account), ICQ (chain query) and ICS (chain security).

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Coreum is a Layer1 blockchain for the company, supporting WASM -based smart contracts, RWA token, Neobanking applications, etc.

4. Chain performance

4-1. Development activities

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Although the development activities on the COSMOS network have maintained health, the highest number of smart contract deployments in the second quarter (2,226) and the highest growth rate (21.4%).The number of core developers is gradually rising, which is also a sign of the active construction of ecological infrastructure.

At the same time, the number of smart contract deployed in the second and third quarters of last year was 2,226 and 1,777, respectively, which was higher than 1,701 in the fourth quarter.Although the development activities have indeed slowed down compared with the previous two quarters, considering the decline in the end of the fourth quarter, we believe that the level of activity is still continuing.

4-2. Network activity

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The most noticeable thing in the COSMOS network activity is that the development activities in the second and third quarters were transformed into the growth of the entire ecosystem in the fourth quarter.As shown in the table, TVL in the COSMOS ecosystem continued to decline in the third quarter, but rose sharply in the fourth quarter.

In the fourth quarter, the explosive growth of the COSMOS ecosystem TVL can attribute to the combination of two factors.The first is the flow of each Layer 1 theme in mid -October.During the 2H period, a large amount of liquidity flow into Layer 1 ecology, solana, COSMOS, and Avalanche pull the overall TVL with explosive performance.

In addition, the friendly infrastructure environment of developers, including COSMOS SDK, and huge blockchain connection networks based on IBC ecosystems, have also brought actual effectiveness to users.If you look closely, the TVL trend will find that this is not just a temporary rise, but a continuous trend.Satisfaction with the maturity of protocols may promote the liquidity of the 1st level, promote the development of COSMOS and reduce user loss.

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Compared with the lowest performance in the third quarter (1,470,050), the number of active wallets in the fourth quarter also increased by nearly 55%to 2,280,335, reflecting the vitality of the ecosystem.This is promoted by the interoperability of the COSMOS IBC ecosystem, which has led to an increase in chain activities. For example, users participate in activities on each protocol and use tokens through DEFI.

In addition, from the TVL trend of the key protocol in the IBC ecosystem, the continuous speculation based on the COSMOS SDK protocol in the second half of the year also played a role in reviving the ecology.In fact, we can see that the TVL of the protocol has increased slightly.Unlike ThorChain and other projects, from the beginning of the fourth quarter, the Injective Agreement has exploded from the end of the fourth quarter to now.We can explain it as the flow of liquidity and transaction activities in the COSMOS IBC ecosystem.

4-3. Network security

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COSMOS currently has a total of 180 active verifications.The top 9 authenticants hold 40.89% pledge $ atom supply.At present, there are 2.44B $ atom pledge on COSMOS, accounting for about 65%of the total supply.

5. End language

2023 is a milestone for the COSMOS ecology, and has witnessed the development and major changes of multiple projects.We believe that these changes indicate that COSMOSO is not only a field of blockchain technology, but also promotes the innovation of the entire blockchain ecosystem.

Celestia, SKIP Protocol and other famous projects show the diversity and flexibility of the COSMOS ecosystem and how they continue to develop.These projects have created new cases of blockchain technology and helped create a more efficient and user -friendly blockchain environment.

The growth and development of the COSMOS ecosystem have enhanced our excitement of blockchain technology in the future.They opened the door to new opportunities for developers, users and investors, and paved the way for continued innovation in the next few years.We expect that the COSMOS ecosystem will continue this positive trend in the next few years, and in the process, new technical challenges and opportunities will continue to appear.