EVM Extensions: A Paradigm Shift in Interoperability and Composability

EVM Extensions, a transformative feature of Evmos Apeiron v13, represents a landmark achievement in the fusion of the Ethereum Virtual Machine (EVM) and the Cosmos ecosystem. This synergy affords smart contracts an advanced level of composability within the EVM and capitalizes on the unique sovereignty and scalability intrinsic to the Cosmos network.

Echoing the infinite implications of its name, Apeiron — derived from the Greek word for “boundless” or “unlimited” — empowers developers to transcend traditional boundaries in decentralized finance (DeFi). It enables creating truly cross-chain decentralized applications (dApps), unearthing new possibilities, and catalyzing a paradigm shift in smart contract development.

The limitless potential of Apeiron’s EVM Extensions also means that Evmos dApps can now interact seamlessly across different Inter-Blockchain Communication (IBC) chains within the Cosmos ecosystem. This opens up new reservoirs of liquidity, fosters greater collaboration, and drives the Evmos ecosystem to new heights of advancement.

Bridging the Isolation Gap

Traditionally, smart contracts within the EVM environment were limited in scope; they could interact with one another but had no access to liquidity outside of the EVM. EVM Extensions change the game by acting as a conduit, granting smart contracts access to core protocol functionalities such as staking, voting, and the pivotal Inter-Blockchain Communication (IBC). This amalgamation effectively bridges the isolation gap and significantly broadens the capabilities of smart contracts.

With EVM Extensions, smart contracts can harness a plethora of functionalities. Developers can construct a staking index through smart contracts, facilitating automated staking or delegation of tokens to a subset of validators. Additionally, smart contracts can integrate voting and governance functionalities. The crown jewel of EVM Extensions is undoubtedly its ability to interact with other chains using IBC Protocol, which empowers smart contracts deployed on the EVM to communicate with smart contracts on other chains, allowing them to create customized packets and dictate the type of data to be transmitted.

The Outpost Model

One of the foremost implementations of EVM Extensions is the concept of “Outposts.” An Outpost is essentially a smart contract on Evmos that functions as a relay or intermediary for another chain. Through Outposts, users and smart contracts can interact with services such as DEX or staking platforms on different chains. IBC middleware facilitates these interactions by processing the packets of data and routing them to the appropriate smart contracts or sections within the EVM that execute the desired logic.

Suppose a smart contract called “Contract A” is designed to facilitate a token swap between two different cryptocurrencies. This contract operates within the EVM. Now, let’s say a user initiates a token swap that is connected to Contract A. This action would generate a data packet that includes the swap details — such as the types and amounts of tokens to be swapped. The IBC middleware would route this packet to Contract A within the EVM. Contract A would then execute its programmed logic — performing the token swap as specified in the packet.

In a more complex scenario, a single action might generate multiple packets that need to be routed to different contracts. For instance, one contract might handle the actual token swap, another might calculate fees, and a third might update a user’s balance. The IBC middleware would be responsible for ensuring each packet reaches the appropriate contract.

Use Case

Let’s consider a practical example involving Stride, a platform that provides liquid staking services within the Cosmos ecosystem. Without EVM Extensions, users would need to engage in multiple transactions, transferring their tokens to the Stride chain, performing a separate transaction to liquid stake, and finally transferring the liquid-staked tokens back to their original location. This process is cumbersome and inefficient.

However, with the Outpost model facilitated by EVM Extensions, this entire workflow is condensed into a single transaction. Users interact with the Stride Outpost contract on the Evmos chain. The Outpost communicates with the EVM Extensions, which in turn initiates an IBC transfer of the assets to Stride. Stride executes the liquid staking and subsequently returns the liquid-staked tokens.

Additionally, EVM Extensions allow users to connect to the Evmos network using popular wallets such as Keplr, MetaMask, or Ledger, and even pay transaction fees with tokens native to the chains they are interacting with.

Dynamic IBC

Beyond the Outpost model, EVM Extensions will bring into play Dynamic IBC, which is expected to reach mainnet later this year. This innovation will enhance composability by allowing smart contracts to communicate with one another and define their own packet standards without the need for chain upgrades. This translates to more flexible and powerful interchain communication, further augmenting what smart contracts can achieve across chains.

In particular, some key components of Dynamic IBC are:

• Customized Packets: Dynamic IBC will allow smart contracts to define their own packets, which is a game-changer compared to the static packet types like ics20 that would traditionally require a chain upgrade. The packets contain essential information like sequence, source, destination, and data. The data field in the packets is of particular importance as it allows smart contracts to define call data, allowing them to interact with other smart contracts across chains.
• Enabling Cross-Chain Composability: With Dynamic IBC, smart contracts will not only be able to communicate with other chains but also compose and build with them. By defining the call data within the packets, smart contracts can send information to another chain, receive an acknowledgment, and depending on the acknowledgment, execute subsequent logic or steps. This will open up endless possibilities for smart contracts to compose with not only other smart contracts but also with external chains through the Outpost model.
• Utilizing IBC Protocol Components: IBC protocol will have several components, including lines, connections, channels, and packets. Channels play a critical role as they enable a specific part of the state on one chain to communicate with a specific part of the state on the receiving chain. This state can be a module or a smart contract. Dynamic IBC will utilize these components, especially the packets which are forwarded between different channels, to enable cross-chain communication.
• Interoperability with Different VM Frameworks: Dynamic IBC will go beyond interoperability with chains that have EVM implementation. It’s being designed to be compatible with other Virtual Machine frameworks such as CosmWasm (a WebAssembly implementation for Cosmos), Solana, Polkadot, etc. This allows for a more diverse and rich ecosystem where smart contracts across different platforms can interact with each other.

Conclusion

EVM Extensions represent a paradigm shift in blockchain interoperability and composability. By bridging the isolation gap, introducing the Outpost model, and soon enabling Dynamic IBC, EVM Extensions are poised to play a pivotal role in the evolving cross-chain future.

Through streamlined transactions and enhanced interchain communication, they not only foster greater efficiency but also substantially improve the user experience and unlock new possibilities for developers and users alike in the DeFi space. The integration of EVM Extensions with the Cosmos ecosystem sets the stage for a more interconnected, scalable, and powerful blockchain network, with smart contracts now able to access core functionalities, interact with multiple chains, and create customized communication protocols.

About Evmos

Evmos is an EVM-compatible, IBC-enabled blockchain in the Cosmos ecosystem designed for cross-chain dApp development.

The Evmos Core Development Team is on a mission to create and ship the foundational tools necessary for building the cross-chain applications of the future. With groundbreaking roadmap features like EVM Extensions, the Evmos SDK, and the Evmos dApp Store, Evmos gives developers the freedom to take advantage of the IBC and connect their smart contracts to the Cosmos Ecosystem.

This revolutionary technology frees developers from the confines of today’s siloed blockchains.

The future is cross-chain.

Helpful Resources

💻 Developer Documentation: https://evmos.dev/

👾 Official Discord: https://discord.gg/evmos

🐙 GitHub: https://github.com/tharsis/evmos

🕊 Twitter: https://twitter.com/EvmosOrg

📯 Telegram: @EvmosOrg

📄 Medium: https://evmos.blog/

🖥 Evmos Website: https://evmos.org

🌋 Evmos Jobs Board: https://boards.eu.greenhouse.io/evmos

Evmos is the EVM stack for building natively cross-chain decentralized applications.

We encourage you to read the Evmos Manifesto and learn more about our plans to build a cross-chain future.

DISCLAIMER: None of this is financial advice. This content is strictly for educational purposes. It’s not investment advice or a solicitation to buy or sell any assets.