Cosmos & Cardano: A New Era of Interoperability
Sifchain is applying for a grant to connect Cardano to the Cosmos ecosystem through our Peggy 2.0 bridge. Peggy 2.0 will be our latest advancement in cross-chain bridge technology and would serve as the seminal bridge deployment between Cosmos and Cardano (via its EVM-compatible layer).
The Cosmos-Cardano bridge powered by Peggy 2.0 and Sifchain will deliver never-before-seen network effects that will scale the reach and adoption of both families of blockchains.
Connecting Cosmos & Cardano
Cosmos and Cardano share common goals around research-backed development, community-driven applications, and global accessibility of blockchain-based solutions, with interoperability at heart.
The Peggy 2.0 bridge will unlock new cross-chain opportunities between these two ecosystems and offer new solutions to existing problems such as access to decentralised governance protocols for growth, new liquidity markets, token-based economies, and much more. In addition, the productive interaction between the vibrant communities of each side, Cosmonauts and the Cardano Community, holds the potential to set new and innovative socioeconomic relations and even cross-chain standards for better interoperability.
Interoperability & Mutual Expansion
One of the core tenets of Cosmos is interoperability and as such, it is popularly dubbed the ‘internet of blockchains’ in the cryptocurrency community. To that end, Cosmos-native chains have the inherent functionality to utilise the Inter-Blockchain Communication (IBC) system that allows for seamless asset transfers and data messaging between IBC enabled chains.
A bridge that connects Cardano’s EVM-compatible layers to Cosmos effectively connects said EVM environment to an enormous ecosystem of chains, dApps, assets, and utilities.
Let’s look at the statistics of the Cosmos ecosystem:
- $4.2B in staked assets securing the chains
- ~$200M in monthly cross-chain transactions
- 40 chains (and continuously growing)
- Thousands of dApps and utilities
A clear commonality between the Cardano and Cosmos worlds is their commitment to eco-friendly and efficient methods to secure their networks through the use Proof-of-Stake technology. With that said, the Cosmos ecosystem would benefit from a connection to Cardano in many ways.
The Cardano community is well-known as one of the most active, vibrant, and committed communities in the cryptocurrency space. Their on-chain organizational and governance structures are well-established and continuously evolving with a focus on providing decentralised tools, solutions, and opportunities that are accessible to millions of people across the globe.
Another tenet of Cardano is its research-based approach to development with serious academic rigour and peer review processes. This can be publicly observed via their vast library of research work and their reputation for being one of the most active development environments based on activity on Github.
For this reason, Cardano provides a valuable service to the rest of the cryptocurrency industry: a passion for in-depth development and global adoption by the masses. The Cosmos ecosystem would naturally benefit from an influx of new users, cultures, and ideas.
The Power of Decentralised Governance & Access to Funding for Innovation
Major Cosmos-based projects like Sifchain are driven by their voting population or a combination of voting and hierarchical decision-making methods by the project teams.
Cardano takes it a step further and offers decentralised governance structures and funding mechanisms to the community to be used to improve and evolve their ecosystem. The Project Catalyst innovation fund is one of the systems that facilitates this process in Cardano.
Project Catalyst’s decentralised innovation funding model works in steps:
- The community self-decides priorities and measures for Cardano ecosystem growth.
- The global community is invited to submit public proposals for grant funding, which are reviewed and voted on by holders of the ADA cryptocurrency.
- Holders of the ADA cryptocurrency vote on their preferred proposals. Selected projects receive funding in traunches and undergo a rigorous management process to measure their development progress.
This process allows the Cardano community to evaluate and approve their preferred proposals, and fund the teams behind such proposals. Sifchain has submitted a proposal. Read the Sifchain proposal on the Project Catalyst site.
With a Cosmos <> Cardano bridge, more projects from Cosmos could propose ideas and qualify for funding assistance via this governance on Cardano. This helps solve major problems for many Cosmos projects, namely the cost of development and the lack of similar governance and open-access funding structures in the Cosmos ecosystem.
Finally, receiving funding support from the Cardano blockchain via decentralised on-chain governance will shed more light on the prospects of interoperability that go beyond token transfers and DeFi opportunities. This will also help usher in new discussions and uplifting narratives surrounding both blockchains project to the general cryptocurrency community.
Cross-Pollination of Teams & Technology
One of the remarkable aspects of both Cosmos and Cardano’s ecosystems is the rapid expansion and cross-pollination of their dApp ecosystems.
On Cosmos, a proliferation of interconnected chains, dApp-specific ecosystems, and community-driven development has resulted in thousands of apps projects launching in less than 2.5 years.
On Cardano, a vibrant dApp ecosystem and optionality have arrived after less than a year of smart contract functionality. Hundreds of dApps have launched on the chain. Its NFT volume is #3 globally, after the behemoths of Ethereum Mainnet and Solana.
The two will benefit from cross-pollination of teams, ideas, and development resources. This connection will encourage global innovation on both fronts.
An Interconnected Future
Sifchain is hard at work on our commitment to making Cosmos’ ‘internet of blockchains’ mantra a reality. Our grant proposal to Cardano (Project Catalyst) will be up for voting from August 11 to August 25. We look forward to the massive cross-chain collaboration from these two major blockchain ecosystems, courtesy Sifchain’s Peggy 2.0 Bridge technology.
We encourage everyone in the Cosmos community and beyond to register before the registration deadline (August 4) in order to partake in the voting process.
Get Involved
Ways you can help Sifchain’s Project Catalyst Grant Application:
- Share this article with your friends, family, and in your favorite Telegram & Discord groups by clicking the sharing link
- Prepare your ADA wallet for voting using our easy step-by-step guide
- Retweet the application announcement on Twitter
Official Channels
Media & content creators, contact us at communications@sifchain.finance.
