On a latest episode of the SlateCast, Akiba and Nate welcomed Sunny Aggarwal, the founding father of Osmosis, for an insightful dialogue in regards to the Cosmos ecosystem, the rise of hyperbitcoinization, and the way forward for DeFi.
Hyperbitcoinization and the function of Cosmos
Sunny expressed his long-standing imaginative and prescient of constructing the app layer for Bitcoin, a objective that motivated his involvement with Cosmos from the very starting. He defined:
“Seven years in the past, 2017, I assumed we have been constructing for Bitcoin. How does this assist Bitcoin? After which I began engaged on Cosmos, as a result of that is how we construct the app layer for Bitcoin.”
The introduction of Ordinals and different developments inside the Bitcoin ecosystem have revived the ‘Bitcoin Season 2’ or ‘Bitcoin Renaissance’, offering a chance for Cosmos to play a serious function within the hyperbitcoinization motion.
Allotted belongings: tackling liquidity fragmentation
One of many predominant matters mentioned was the idea of ‘Alloyed Belongings’, an answer designed to deal with liquidity fragmentation in numerous blockchain ecosystems. Sunny defined the rationale behind this revolutionary strategy:
“What occurred a couple of 12 months or two in the past, Osmosis used governance and the DAO truly voted to make Axelar ETH the canonical ETH on Osmosis. The issue is that within the final two years a number of bridges have emerged, like Wormhole, however much more exercise within the Ethereum ecosystem has additionally shifted to L2s.”
Alloyed belongings permit customers to deposit and withdraw tokens from totally different supply chains, equivalent to Ethereum L2s, whereas sustaining fungibility and bettering the person expertise.
Neighborhood engagement and DeFi innovation
Sunny emphasised the significance of group involvement within the success of Osmosis, stating that the workforce conducts buyer surveys each quarter to assemble suggestions and form the challenge’s growth roadmap. He emphasised the necessity for continued innovation within the DeFi area, citing the potential of mixing social parts and DeFi:
“Particularly with the rise of social, that is the place among the actually fascinating issues come, if you mix social and DeFi. One in every of my issues has at all times been DeFi and crypto at the moment is essentially designed on this mannequin of the world, the place we dwell in a reliable system, however I truly do not suppose that is the actual state of the world.
Tradeoffs between centralization and decentralization
In response to the centralization vs. decentralization debate, Sunny expressed concern in regards to the shift in direction of centralized execution within the Ethereum L2 ecosystem, stating:
“The issue is that decentralization provides you extra than simply the protected. In a blockchain you are wanting for lots of various properties, proper? You search for security, that’s, the right implementation of the protocol, however you additionally search for liveliness. Does the system at all times stay on-line? You’re on the lookout for resistance to censorship.”
He advocated mesh safety, which makes use of financial incentives throughout networks to enhance safety and validity with out compromising decentralization.
The episode additionally supplied invaluable insights into the way forward for Osmosis, the Cosmos ecosystem, and the broader DeFi panorama. With a robust concentrate on group engagement, innovation and upholding the core ideas of decentralization, Osmosis continues to place itself as a number one participant within the evolving world of decentralized finance.
New SlateCast🎙️: Bitcoinization of Cosmos
“I began engaged on Cosmos as a result of it is how we construct the app layer for #Bitcoin”
🎤 Visitor: @sunnya97 co-founder of @osmosiszone
🗣️ Hosts: @NateWhitehill @akibablade pic.twitter.com/Y7clQGRz5P
— Crypto (@Crypto) April 17, 2024