interoperability

Blockchains need an interoperable standard to evolve, say crypto execs

Blockchains will need interoperability like computers need an internet connection to transfer data and value, a Chainlink Labs executive says.

Blockchain technology needs a benchmark communications standard that can be easily integrated by every network in order for a complete transition from Web2 to Web3 to occur, industry commentators say.

Many expect there will be multiple blockchains and such an ecosystem requires communication protocols similar to the Transmission Control Protocol/Internet Protocol (TCP/IP) used on the internet.

Ryan Lovell, director of capital markets at crypto price oracle solutions firm Chainlink Labs, told Cointelegraph that blockchains will need interoperability similar to how computers need the internet to transfer data and value across networks:

“To realize a fully interoperable blockchain ecosystem at scale, there needs to be an open communication standard analogous to the TCP/IP, which currently serves as the internet’s de facto connection protocol.”

Lovell believed a similar standard for blockchain networks would “pave the way for a seamless, internet-like experience” for the platform and their applications.

This is particularly important given that the last bull market saw a host of new layer-1 blockchains make their mark. However, nearly all of them operate in isolation from one another.

Lovell stressed that blockchain interoperability is “crucial” for financial institutions looking to tokenize real-world assets because that would ensure that liquidity isn’t “stifled” by only existing in a “siloed ecosystem.”

Brent Xu, the founder and chief executive of Umee — a lending platform backed by Cosmos’ Inter-blockchain Communication Protocol (IBC) — told Cointelegraph that before real-world assets are brought on-chain, proper risk management systems need to be put in place to facilitate this interoperability.

Xu explained that financial institutions would need to tick off Know Your Client (KYC) credentials to ensure the authenticity of the real-world assets before being tokenized on-chain and then make sure that they can be identified by an on-chain proof-of-reserve audit.

In order to avoid an on-chain catastrophe, he stressed the risk of cutting corners simply isn’t worth it:

“Think of the ‘08 mortgage crisis. Tremendous financial value was lost due to a broken legacy system. Imagine if this value was ported into the blockchain ecosystem, we would see tremendous value loss due to the contagion.”

Cross-chain bridges, independent layer-2 sidechains and oracles are three of the most commonly used blockchain interoperability solutions to date. The first two operate solely on-chain, while the latter feeds off-chain data on-chain.

Related: Why interoperability is the key to blockchain technology’s mass adoption

There have been issues with some of these solutions, however, most notably cross-chain bridges.

An October report highlighted that half of all exploits in decentralized finance (DeFi) took place on a cross-chain bridge, the most notable example being the $600 million Ronin bridge hack in March 2022.

Xu noted that many of these hacks have come from multi-signature security setups or proof-of-authority consensus mechanisms, which are considered to be centralized and much more vulnerable to attack.

He added that many of these interoperability solutions favored “speed of development” over security early on, which backfired.

The key, Xu said, is to incorporate interoperability within the platform, as that will result in a more secure end-to-end transaction than through the use of third-party bridges:

“Bridges are particularly susceptible because they provide two ends at which hackers can potentially infiltrate any vulnerabilities.”

Among the most commonly used blockchain interoperability protocols are Chainlink’s Cross-Chain Interoperability Protocol (CCIP); the IBC, which leverages the Cosmos ecosystem; Quant Network’s Overledger and Polkadot.

Update (April 17, 8:25 am UTC): This article has been updated to more accurately reflect an analogy from Ryan Lovell.

Magazine: ZK-rollups are ‘the endgame’ for scaling blockchains, Polygon Miden founder

What is a supernet, and how does it work?

A supernet or umbrella network combines multiple smaller networks or blockchains into one larger network.

Supernets enable communication among distinct blockchain networks, considerably improving the usefulness of the overall system by enabling the transfer of assets and data among different blockchains.

Furthermore, shared infrastructure and resources can be made possible by interconnected networks, which can lower costs and boost overall effectiveness. By making assets accessible across numerous networks, they can significantly improve their liquidity, which will raise the assets’ value.

This article will discuss the concept of a supernet, how to implement supernetting, the advantages and disadvantages of supernetting, and how it’s different from a subnet.

What is a supernet?

A supernet, also known as a metanet, is a network of networks that allows interoperability and cross-communication among different blockchain networks. The idea behind a supernet is to create a decentralized network that allows different blockchain platforms to communicate and interact with one another without the need for a centralized intermediary, creating a unified ecosystem. Moreover, the effectiveness and speed of transactions and communications among various blockchains can be significantly increased as a result. 

A supernet also has the advantage of facilitating the development of new decentralized services and apps that can combine the strengths of many blockchains. This may create fresh opportunities for development and innovation in the blockchain industry. Cross-chain communication is another feature of supernet that enables chains to connect and transact with one another, increasing the value for users.

Related: What are DApps? Everything there is to know about decentralized applications

How does a supernet work?

To implement a supernet, various protocols and technologies, such as atomic swaps, cross-chain communication protocols and sidechains, are used. These technologies allow different blockchains to communicate and interact with one another and can be thought of as a kind of “bridge” between different networks.

Atomic swaps, sometimes referred to as atomic cross-chain trade, enable cryptocurrency trading without the use of centralized intermediaries. This is accomplished by developing a smart contract on one blockchain that encrypts the assets being traded, unlocks them once the trade is complete, and releases them on the other blockchain. This allows assets to be transferred between blockchains without the need for a centralized exchange

To enable communication and interaction across several blockchains, cross-chain communication protocols, such as Cosmos and Polkadot, are employed. These protocols enable the exchange of information and assets among many blockchains and the development of decentralized apps that can combine the advantages of various blockchains.

Another technology utilized in a supernet is sidechains. A sidechain is an additional blockchain that is connected to a main blockchain and permits the movement of assets between the two. This allows for greater scalability and privacy, as well as the ability to experiment with new technologies and consensus mechanisms without affecting the main blockchain.

How to supernet a network

A supernet, or network of networks, can be built using a variety of technologies and protocols, and it is a complicated process. Here is a general overview of the steps involved in creating a supernet:

Identify the networks to be connected

The process of building a supernet begins with identifying the various blockchain networks that are to be linked. To facilitate smooth communication and interaction, these networks should have identical protocols and objectives.

Implement atomic swaps

A crucial piece of technology to enable the transfer of assets among various blockchains, atomic swaps allow cross-chain trade among various blockchains.

Develop cross-chain communication protocols

Cross-chain communication protocols, such as Cosmos and other corresponding protocols, must be created to enable communication and interaction across various blockchains. These protocols enable the exchange of information and assets between several blockchains.

Create sidechains

A sidechain is a separate blockchain that runs parallel to a main blockchain and is connected to it through a two-way peg. This means that assets can be transferred from the main blockchain to the sidechain and vice versa. Each sidechain in a supernet has a specialized function, such as providing privacy and scalability or supporting particular assets.

Test and deploy

Once the supernet infrastructure is set up, it’s vital to test it thoroughly before deploying it. This step will help identify and fix any bugs or errors that may exist.

Promotion

The next stage once the supernet is set up is to promote the use of the brand-new infrastructure. Building a developer community, forming alliances with other initiatives, and putting in place rewards for people who join the network can all help achieve this.

The above steps offer a general overview of creating a supernet and the process can be complex and require different levels of expertise, depending on the specific use case.

How to identify a supernet address

A network address that is produced by fusing many network addresses is known as a supernet address. The process of identifying a supernet address is called supernetting or classless inter-domain routing (CIDR).

The following steps can be used to identify a supernet address:

Steps to identify a supernet address

For instance, let’s say there are two networks:

Two networks to generate a supernet address

To supernet these two networks, one needs to find the largest network mask that can encompass both of them. In this case, the largest mask that would work is a /23 mask (255.255.254.0). The new network mass can be obtained by counting the shared leading bits in the network section of the addresses. This allows one to generate a supernet address by aggregating both networks into a single, larger network, which they can represent as:

Supernet address

This supernet can be used in place of the two individual networks, and any IP address within the range of the supernet will be routed to the correct destination network. Supernetting helps to reduce the number of routes in the routing table, making it easier for routers to manage network traffic and improving the efficiency of IP address usage. However, it is important to note that the process of supernetting requires a good understanding of internet protocol (IP) addressing and network subnetting.

Advantages of supernetting

CIDR is a technique used to create a supernet address by combining multiple network addresses. It has several advantages, including:

  • Efficient use of IP addresses: More effective use of IP addresses is made possible by supernetting, which joins several networks into a single supernet. This can aid in IP address conservation and prevent IP address depletion.
  • Improved routing efficiency: Supernetting can help minimize the number of entries in routing tables, which can lower the amount of memory and processing power needed to route traffic, resulting in improved routing efficiency.
  • Easier network management: Supernetting can make network management easier by reducing the number of networks that need to be managed and configured. This can help to simplify network administration and reduce the number of errors and misconfigurations.
  • Increased security: By lowering the number of computer networks and potential attack surfaces, supernetting can also improve security by making it more challenging for hackers to breach the network.
  • Interoperability: It is a central feature of the SuperNet network and is achieved through the use of sidechains and cross-chain atomic swaps. This allows users to manage and trade digital assets across different blockchains in a seamless and efficient manner.
  • Scalability: Supernetting enables the construction of networks that may be expanded or contracted as necessary to meet changing demands.

Despite the above advantages, supernetting should be done with caution, as it can also introduce new security risks if not done properly.

Disadvantages of supernetting

While supernetting, also known as CIDR, has many advantages, there are also some potential drawbacks to consider:

  • Complexity: It can be a challenging technique that necessitates a solid grasp of IP addressing and network subnetting to perform supernetting. Furthermore, it may necessitate the use of specialized software and hardware, increasing the cost and network complexity.
  • Security risks: If supernetting is done incorrectly, it can create new security problems. Combining several networks into a single supernet might increase the attack surface and make network security more challenging.
  • Compatibility issues: Supernetting can create compatibility issues with some network devices or software that may not support CIDR.
  • Increased complexity in routing: Supernetting can make it risky to find the proper path for packets, which can lead to an increase in routing complexity. Increased latency and poorer network performance may result from this.
  • Lack of granularity: Supernetting can make it more difficult to segment a network and create smaller, more secure subnets. Access control to particular network resources or devices may become more difficult as a result.
  • Limited scalability: Supernetting can limit scalability in the sense that it can create difficulties in adding new networks to the existing supernet.

However, the above drawbacks of supernetting can be mitigated by proper planning and execution and by using appropriate security measures to protect the network.

What is the difference between a subnet and supernet?

A smaller network, often called a subnet or subnetwork, is produced by segmenting a larger network into smaller, easier-to-manage networks. Subnetting divides a network into smaller, independent portions, improving structure and security. 

Each subnet can be established and managed independently, and it can have its own set of network addresses. In large networks, such as those used by businesses or organizations, subnetting is a typical practice. On the other hand, multiple networks are linked together to form a supernet, which enables them to interact and communicate with one another to form a single ecosystem.

Here is a summary of supernetting vs. subnetting:

Subnet vs. Supernet

How to manage supernets

A thorough understanding of IP addressing and network subnetting is necessary for managing a supernet. Here are some general requirements for managing a supernet:

Develop a network plan

A thorough network strategy that specifies the goals and objectives of the network, as well as the particular requirements for each unique network that will be included in the supernet, must be created prior to the implementation of the supernet.

Establish governance

Establish clear lines of responsibility and decision-making processes for the supernet. This includes determining who will be responsible for managing the network, who will have access to it, and who will be able to make changes to the network’s configuration.

Train the staff

The supernet management team must possess the knowledge and abilities required to set up and run the network. They ought to receive instruction on how to use the particular technologies and protocols employed by the supernet.

Plan and implement network integration

Establish how the various networks will be connected to one another and how they will exchange resources as part of the bigger network integration. Then, install the required hardware and software to link the networks together and incorporate them into the supernet. This could comprise network management software, switches, routers and firewalls.

Use appropriate security measures

The use of proper security mechanisms, such as firewalls, intrusion detection, prevention systems and other security technologies, is essential to ensuring the network’s security.

Monitor and maintain the network

The network must be regularly monitored and maintained to ensure that it is operating effectively and that any problems are found and fixed quickly.

Use centralized management tools

Centralized management tools can help to simplify the management of the supernet by providing a single point of control for the entire network.

Keep the software updated

If the software is kept up to date, the network can be protected against known vulnerabilities and run the most recent security patches.

Document and troubleshoot

The network is easier to comprehend and administer with proper documentation and troubleshooting.

Test the network

Network testing on a regular basis might help find and fix any potential problems. Regular penetration testing and other security testing technologies can be used to accomplish this.

Overall, it is important to have a strong understanding of network infrastructure, security and management practices in order to effectively manage a supernet.

Layer 1 EVM oracle platform Flare launches to boost interoperable DApps

Layer 1 EVM blockchain Flare goes online, aimed at providing developers a platform to build decentralized interoperable applications.

Flare, a new layer-1 Ethereum Virtual Machine blockchain platform, has gone live with the launch of two core protocols aimed at powering decentralized interoperability applications.

The platform serves as an oracle network that allows developers to build applications that are aimed at being interoperable with different blockchains and internet platforms and services.

Flare features two protocols that power its application-building suite. Its State Connector protocol enables information and data to be used securely and at scale from various blockchains and internet sources with the use of smart contracts. The functionality is touted to offer powerful data to the network and facilitate the development of cross-chain solutions.

Meanwhile, the Flare Time Series Oracle (FTSO) sources and provides decentralized price and data feeds to decentralized applications (DApps) running on the layer-1 blockchain platform. According to Flare’s technical documentation, the FTSO smart contract provides continuous estimates for different types of data.

Independent providers retrieve data from external sources like centralized and decentralized exchanges and supply that data to the FTSO system. The information is weighted according to each provider’s voting power, with a median calculated to produce the final estimate.

Related: Chainlink launches staking to increase the security of oracle services

This operates as an incentive system for data providers, which are rewarded for supplying price pairs and other information that is close to the median value from various sources.

The protocol’s two networks, Songbird and Flare, run the Ethereum Virtual Machine, allowing Ethereum contracts and tools to be used in the development of smart contracts and applications. However, these layer 1 networks run independently of Ethereum mainnet.

Cast your vote now!

Details of the platform launch shared with Cointelegraph highlight the importance of providing secure access to data. Flare CEO and co-founder Hugo Philion believes that the two protocols can lead to new use cases for blockchain technology, such as triggering a Flare smart contract with a payment made on another chain or by input from a conventional website. He said:

“It also facilitates a new way of bridging, specifically to bring non-smart contract tokens to Flare for use in applications like DeFi protocols.”

Flare initiated its token airdrop on Jan. 9, with 4.27 billion FLR tokens distributed to millions of users across various cryptocurrency exchanges. The airdrop itself marked a unique milestone, as developers can now start using Flare’s EVM and data acquisition protocols.

The initial token distribution released 15 percent of the full public token allocation, with the remainder set to be released monthly over 36 months. The allocation method for the remaining token supply will be settled by a community vote through Flare Improvement Proposal 01.

Worldwide Webb founder explains the role interoperability will play in Web3

NFT Steez chats with Worldwide Webb founder Thomas Webb to discuss the future impact of interoperability in Web3 and the metaverse.

On Nov. 11, NFT Steez, a bi-weekly Twitter Spaces hosted by Alyssa Expósito and Ray Salmond, met with Thomas Webb, the founder of the interoperable avatar game Worldwide Webb, to discuss the integration of interoperability in Web3 and the metaverse. 

By definition, interoperability is a feature of Web3 whereby a product or system can work seamlessly across platforms with other products or services. Webb defines interoperability simply as “creating a token— a nonfungible token (NFT)” since, at its most basic level, no one can control it besides the creator.

But how does interoperability function presently in Web3, and what is its potential impact?

Executing interoperability the “right” way 

When discussing how interoperable applications can create a profound impact, Webb described the creativity he has seen from nonfungible token (NFT) communities and brands.

Whether it comes from “creating a product, creating ideas, or creating experiences,” Webb believes that enabling the creation of intellectual property (IP) allows users to display their loyalty and in other ways, their achievement.

Interoperability also seems to function in tandem with token-gated experiences, according to Webb. In essence, users can get closer to authentic experiences by using the token they hold as an access pass to attend events and receive perks.

This integration enables brands to cross-collaborate, reach their users and create a proliferation of value, or as Webb says, “infinite value.”

Related: NFT Steez and Lukso co-founder explore the implications of digital self-sovereignty in Web3

Interoperability applications across sectors 

“Interoperability could be the backbone of everything,” stated Webb when asked about the sectors interoperability could seep into.

For Webb, the more transparent and data-driven platforms can be, will yield more collaboration and engagement across tech companies. Ultimately, Webb believes that e-commerce, creative experiences and even concepts like identity and self-sovereignty will be impacted by the concept of interoperability.

However, even with interoperability as a cornerstone of Web3, Webb did express the inevitability of risk and challenges associated with creating a standard that suits all countries. 

According to Webb, the presence of centralized regulatory bodies could continue to inhibit experimentation and growth. 

To hear more from the conversation, tune in and listen to the full episode of NFT Steez and make sure to mark your calendar for the next episode on Dec. 2 at 12 pm EST.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

New Cosmos whitepaper repurposes ATOM token and refines vision

The news comes a couple of weeks after research firm Delphi Labs announced it would shift the focus of its research and development efforts toward the Cosmos ecosystem.

Interoperability-focused blockchain network Cosmos has dropped a new whitepaper proposing a revamped Cosmos Hub aimed at strengthening interoperability and security, along with key changes to its native ATOM token. 

The new Cosmos whitepaper was released on Monday at the Cosmoverse conference in Medellin, Colombia. The upgrades outlined in the whitepaper are still technically in “proposal” status but changes are expected to be made on-chain on Oct. 3.

Cosmos is an ecosystem of blockchains designed to scale and interoperate with each other. Cosmos Hub was the first blockchain to be built on Cosmos, which initially served as an intermediary between other interconnected blockchains.

The ATOM token is used to transact within the Cosmos ecosystem, which can also be used for governance and staking purposes.

Under the proposed changes, Cosmos will become a more interoperable, decentralized, and secure ecosystem.

One of the changes outlined is the reinvention of the Cosmos Hub as the “Interchain” web, which will enable other Cosmos blockchains to borrow the Hub’s validator pool to secure its network rather than having to find their own.

Billy Rennekamp, the Cosmos Hub Product Lead added that the value proposition behind this transition to Interchain Security would also make the Cosmos network “legally, defensibly decentralized.”

According to the whitepaper, Interchain Security will also enable Cosmos Hub to “host a novel category of applications with complementary functionality,” stating:

“Interchain Security gives consumer chains a faster, easier, and cheaper path to market [and] the development platform afforded by Interchain Security allows […] third parties to utilize the Hub’s essential infrastructure to build commercial applications.”

The whitepaper also proposes a new issuance model for the native ATOM token, with the aim to strike a better balance between ecosystem growth and interchain adoption “while still preserving the security afforded by the original regime,” according to the whitepaper.

The new monetary policy will see two phases: “transition” and “steady state.”

The transition phase will see 10,000,000 ATOM issued in the first month, which will then decrease at a declining rate until it reaches the steady state phase 36 months later.

Cosmos co-founder Ethan Buchman said this new token issuance model would enable other Cosmos blockchains to become more interconnected with the Cosmos Hub and ATOM.

Related: Most of the crypto market is down, but Cosmos (ATOM) price is up — Why?

The whitepaper also outlined a plan to further accrue more value to the ATOM token by enabling leveraged liquid staking.

This will allow ATOM holders to unstake ATOM tokens as easily as they staked them, which will soon be enabled by the Cosmos “liquid staking module.”

“The user experience and capital efficiency improvement offered by liquid stalking is so substantial” that it required “full economic integration” into the new Cosmos interchain-oriented ecosystem, according to the whitepaper.

The release of the whitepaper comes a few weeks after research and investment firm Delphi Labs announced a shift of its R&D efforts to focus on the Cosmos ecosystem.

The research firm outlined network speed, chain liquidity, sufficient decentralization, and cross-chain interoperability as the key factors behind its decision to provide R&D efforts to help further the growth of Cosmos.

New Cosmos white paper repurposes ATOM token and refines vision

The news comes a couple of weeks after research firm Delphi Labs announced it would shift the focus of its research and development efforts toward the Cosmos ecosystem.

Interoperability-focused blockchain network Cosmos has dropped a new white paper proposing a revamped Cosmos Hub aimed at strengthening interoperability and security, along with key changes to its Cosmos (ATOM) token. 

The new Cosmos white paper was released on Monday at the Cosmoverse conference in Medellin, Colombia. The upgrades outlined in the white paper are still technically in “proposal” status, but changes are expected to be made on-chain on Oct. 3.

Cosmos is an ecosystem of blockchains designed to scale and interoperate with each other. Cosmos Hub was the first blockchain to be built on Cosmos, which initially served as an intermediary between other interconnected blockchains.

ATOM is used to transact within the Cosmos ecosystem, which can also be used for governance and staking purposes.

Under the proposed changes, Cosmos will become a more interoperable, decentralized and secure ecosystem.

One of the changes outlined is the reinvention of the Cosmos Hub as the “Interchain” web, which will enable other Cosmos blockchains to borrow the Hub’s validator pool to secure its network rather than having to find their own.

Billy Rennekamp, the Cosmos Hub product lead, added that the value proposition behind this transition to Interchain Security would also make the Cosmos network “legally, defensibly decentralized.”

According to the white paper, Interchain Security will also enable Cosmos Hub to “host a novel category of applications with complementary functionality,” stating:

“Interchain Security gives consumer chains a faster, easier, and cheaper path to market [and] the development platform afforded by Interchain Security allows […] third parties to utilize the Hub’s essential infrastructure to build commercial applications.”

The white paper also proposes a new issuance model for ATOM, with the aim to strike a better balance between ecosystem growth and interchain adoption “while still preserving the security afforded by the original regime,” according to the white paper.

The new monetary policy will see two phases: “transition” and “steady state.”

The transition phase will see 10,000,000 ATOM issued in the first month, which will then decrease at a declining rate until it reaches the steady state phase 36 months later.

Cosmos co-founder Ethan Buchman said this new token issuance model would enable other Cosmos blockchains to become more interconnected with the Cosmos Hub and ATOM.

Related: Most of the crypto market is down, but Cosmos (ATOM) price is up — Why?

The white paper also outlined a plan to further accrue more value to the ATOM token by enabling leveraged liquid staking.

This will allow ATOM holders to unstake ATOM as easily as they staked them, which will soon be enabled by the Cosmos “liquid staking module.”

“The user experience and capital efficiency improvement offered by liquid stalking is so substantial” that it required “full economic integration” into the new Cosmos interchain-oriented ecosystem, according to the white paper.

The release of the white paper comes a few weeks after research and investment firm Delphi Labs announced a shift of its R&D efforts to focus on the Cosmos ecosystem.

The research firm outlined network speed, chain liquidity, sufficient decentralization and cross-chain interoperability as the key factors behind its decision to provide R&D efforts to help further the growth of Cosmos.

Delphi Labs shifts research focus to a new crypto ecosystem… and it’s not Ethereum

As part of Delphi Digital’s research into major ecosystems to find a new focus for its R&D arm, the firm has selected Cosmos over Ethereum as it thinks the latter is too slow and expensive.

Crypto research firm Delphi Digital has shifted the focus of its research and development (R&D) protocol arm Delphi Labs to the Cosmos ecosystem.

Delphi Labs is Delphi Digital’s protocol R&D arm, with a team of around 50 aimed at incubating “Web3 primitives.” The R&D arm had previously been focused on researching and developing protocols on Terra but was forced to look into other ecosystems following its collapse in May. 

Delphi Digital is an independent research and investment firm founded in 2018 that provides institutional-grade analysis of the digital asset market, which launched its Labs wing in 2021. 

In a lengthy report published on Sept. 8, Delphi Digital said its team analyzed a range of different blockchain ecosystems to determine which was the most suitable for its needs, particularly in relation to decentralized finance (DeFi), but ultimately decided on the Cosmos ecosystem.

Describing it as “an ecosystem of interoperable blockchains,” Delphi Labs decided Cosmos was the best ecosystem to focus its R&D on. It pointed to Cosmos’ ability to benefit from an increasing number of app chains and cross-chain interoperability as major positives.

The firm also outlined speed, chain liquidity, decentralization, cross-chain interoperability, technical maturity, and code portability as key factors in its decision to back Cosmos, despite the fact that the ecosystem is somewhat lacking compared to competitors such as Ethereum. 

Delphi Digital suggested that despite Ethereum hosting the majority of DeFi apps, the speed and cost of using the Ethereum base layer is the main drawback of the blockchain, resulting in a poor user experience.

Related: Why interoperability is the key to blockchain technology’s mass adoption

The report noted that rollups allow Ethereum to overcome this problem but sees interoperability between chains and outages or latency issues as major issues.

Polygon (MATIC), Optimism (OP), Starknet (STARKNET), Cosmos (ATOM), Avalanche (AVAX), Solana (SOL), Polkadot (DOT), Near (NEAR), and Celestia (CELT) were all compared within the report, with Cosmos scoring the highest overall. 

Delphi Labs shifts research focus to a new crypto ecosystem, and it’s not Ethereum

As part of Delphi Digital’s research into major ecosystems to find a new focus for its R&D arm, the firm has selected Cosmos over Ethereum as it thinks the latter is too slow and expensive.

Crypto research firm Delphi Digital has shifted the focus of its research and development (R&D) protocol arm Delphi Labs to the Cosmos ecosystem.

Delphi Labs is Delphi Digital’s protocol R&D arm, with a team of around 50 aimed at incubating “Web3 primitives.” The R&D arm had previously been focused on researching and developing protocols on Terra but was forced to look into other ecosystems following its collapse in May. 

Delphi Digital is an independent research and investment firm founded in 2018 that provides institutional-grade analysis of the digital asset market, which launched its Labs wing in 2021. 

In a lengthy report published on Thursday, Delphi Digital said its team analyzed a range of different blockchain ecosystems to determine which was the most suitable for its needs, particularly in relation to decentralized finance (DeFi), but ultimately decided on the Cosmos ecosystem.

Describing it as “an ecosystem of interoperable blockchains,” Delphi Labs decided Cosmos was the best ecosystem to focus its R&D on. It pointed to Cosmos’ ability to benefit from an increasing number of app chains and cross-chain interoperability as major positives.

The firm also outlined speed, chain liquidity, decentralization, cross-chain interoperability, technical maturity and code portability as key factors in its decision to back Cosmos, despite the fact that the ecosystem is somewhat lacking compared to competitors such as Ethereum. 

Delphi Digital suggested that despite Ethereum hosting the majority of decentralized applications (DApps), the speed and cost of using the Ethereum base layer is the main drawback of the blockchain, resulting in a poor user experience.

Related: Why interoperability is the key to blockchain technology’s mass adoption

The report noted that rollups allow Ethereum to overcome this problem but sees interoperability between chains and outages or latency issues as major issues.

Polygon, Optimism, Starknet, Cosmos, Avalanche, Solana, Polkadot, Near, and Celestia were all compared within the report, with Cosmos scoring the highest overall. 

Fork of July: Cardano Vasil upgrade successfully launches on testnet

With the Cardano testnet hard fork complete, all that remains is to fork the mainnet, which will come in about four weeks or when developers have had enough time to prepare their tools for the upgrade.

The much-anticipated Vasil hard fork has been completed on the Cardano testnet, bringing it one major step closer to becoming a reality on the mainnet and promising broad performance upgrades.

Project developers, stake pool operators (SPO) and exchanges are now encouraged to deploy their work on the testnet to ensure integrations run smoothly when the mainnet gets the Vasil treatment in about four weeks.

Once completed on the mainnet, the Vasil hard fork will allow faster block creation and greater scalability for decentralized apps (DApps) running on Cardano. Input Output HK (IOHK), the organization that produced Cardano, said in a Sunday tweet that in addition to the performance upgrades, developers would benefit from “much-improved script performance and efficiency” and lower costs.

Vasil will also enable interoperability between Cardano sidechains, one of the main features developers intend to launch in the current Basho phase of the blockchain’s development. Basho is the fourth development phase for Cardano that focuses on scaling and will be followed up with the Voltaire phase, in which governance will be the main focus.

IOHK also noted that there would not be a proposal to hard fork the mainnet until “ecosystem partners are comfortable and ready,” but it is expected to come in about four weeks.

The previous phase, Goguen, saw the launch of smart contract capabilities on Cardano, which decentralized finance (DeFi) developers took advantage of by launching dozens of decentralized exchanges (DEX) and DeFi protocols, according to ecosystem tracker Cardano Cube.

Related: Ethereum fork a success as Sepolia testnet gears up to trial the Merge

Cardano’s top DApp with $49.7 million in total value locked (TVL) is currently the DEX WingRiders, according to the DeFi data compiler DefiLlama.

The testnet hard fork has done little to move Cardano (ADA) as it is only up 0.1% over the last 24 hours to $0.45, according to CoinGecko.