Exploring the Convergence of Cosmos and WASM in 2023

In the dynamic realm of blockchain technology, the Cosmos ecosystem stands out as a beacon of innovation and interoperability. Known for its unique vision of creating an ‘Internet of Blockchains,’ Cosmos facilitates seamless communication and transaction between diverse blockchain networks. At the heart of this ecosystem’s evolution is the integration of WebAssembly (WASM), a cutting-edge technology that enables near-native performance for web applications. This convergence of Cosmos and WASM heralds a new era in blockchain development, where flexibility, efficiency, and cross-chain interoperability are not just aspirations but tangible realities. Let’s delve into the transformative impact of WASM within the Cosmos blockchain ecosystem.

At the core of this transformation lies CosmWasm, an advanced module that integrates with the Cosmos SDK to enable smart contract capabilities within the Cosmos network. Launched in December 2019, CosmWasm utilizes WebAssembly (Wasm) and is primarily coded in Rust, a programming language renowned for its efficiency and security. This integration has equipped developers with the tools to build sophisticated and secure decentralized applications (dApps) on the Cosmos network​​​​.

Cosmos SDK operates as a versatile framework for building multi-asset public Proof-of-Stake (PoS) and Proof-of-Authority (PoA) blockchains. It offers a modular design, allowing developers to select and integrate specific components tailored to their project’s needs. The symbiosis between Cosmos SDK and CosmWasm epitomizes the blend of modular design with the technical prowess of Rust, offering unprecedented flexibility and efficiency in blockchain application development​​.

The year 2023 has been pivotal for CosmWasm, marked by significant events like the AwesomWasm conference and HackWasm Berlin. These events not only spotlighted the latest developments in the CosmWasm ecosystem but also fostered a vibrant community of developers and enthusiasts. The increasing adoption of CosmWasm beyond the Cosmos network underscores its growing relevance in the broader blockchain landscape​​.

In the ever-evolving Cosmos ecosystem, several protocols and applications are harnessing the power of WASM to create innovative solutions and services. Here are some key players and stakeholders contributing to this dynamic landscape:

1. Neutron: This is a permissionless smart contract platform secured by the Cosmos Hub. It allows for the deployment of smart contracts using CosmWASM without a governance vote for whitelisting. Neutron is an incubator for dApps joining the ATOM Economic Zone, fostering innovations like interchain DEXes. One notable deployment on Neutron is Lido, which offers ATOM liquid staking services​​.
2. Osmosis: A highly active chain in the Cosmos ecosystem, Osmosis stands as the liquidity backbone with deep liquidity among IBC-enabled chains. It introduced Superfluid Staking and is planning to launch several features in 2023, including concentrated liquidity and internalizing benign MEV via the Skip Protocol. Osmosis is significant in driving economic activity within the Cosmos ecosystem​​.
3. Sei: This promising blockchain is a hybrid Layer1 that offers high flexibility and freedom for developers, particularly in DeFi applications. Sei is notable for launching two optimized rollup solutions, Nitro (a Solana Virtual Machine rollup) and Paddle (a Move Virtual Machine rollup), enhancing performance and security​​.
4. dYdX: A DEX-focused appchain that plans to deploy its blockchain on Cosmos. This move is significant for the circulation of native USDC across the Interchain, filling a vital gap in the Cosmos and IBC protocol. The growth of dYdX is expected to create a virtuous cycle, boosting the adoption of consumer chains and native USDC​​.
5. Injective: A decentralized derivatives protocol, Injective is designed to create a global trading market for derivatives that is fully trustless, enhancing security and fairness of transactions. It supports a variety of applications including perpetual futures, options, and stablecoins​​.
6. Duality: Known for creating AMM pools that allow swaps at a constant price, Duality is distinctive in its approach to liquidity, resembling limit orders on a CLOB. It competes with Osmosis to internalize arbitrage profits from MEV and redistribute them to LPs​​.

In addition to these projects, the Cosmos Builders Foundation plays a pivotal role in supporting and scaling the Cosmos ecosystem. This non-profit organization is dedicated to maintaining and developing infrastructural public goods for the long-term growth of the Interchain ecosystem. It implements a grants program to fund IBC infrastructure and incentivizes relayers, ensuring the scalability and functionality of the Interchain. The foundation also plans to deploy funds for the development of the Cosmos Stack, including Tendermint, CosmosSDK, and CosmWASM, supporting projects that improve accountability and user privacy in the Interchain ecosystem.

The recent updates in the Cosmos ecosystem, including releases and developmental strides, reflect the dynamic nature of CosmWasm. Key developments such as White Whale on Terra Classic, Helix Institutional in the Injective ecosystem, and native USDT pool in Osmosis signify the expanding footprint of CosmWasm. Educational initiatives like the Interchain Builders Program and the Dev Academy further bolster the ecosystem by providing resources and support for Web3 founders and developers​​.

CosmWasm, in conjunction with IBC (Inter-Blockchain Communication Protocol), unlocks a plethora of use cases. These include cross-chain asset transfers, creation of a highly interoperable infrastructure, and facilitation of multi-chain governance. Such functionalities not only enhance the flexibility of blockchain networks but also pave the way for innovative applications across various domains​​.

In the cosmos of Cosmos and WASM, the potential for innovation is boundless, and DIA is here to fuel this journey. Our unique approach to oracles covers the entire data journey, offering extensive, transparent data feeds for WASM smart contracts on Cosmos. From randomness to cryptocurrency, NFT and LST price feeds, our offerings are diverse. If you’re ready to elevate your blockchain projects with reliable, tailored data solutions, connect with DIA.