What Is Evmos? All You Need to Know About EVMOS

What Is Evmos?

The ultimate achievement of open source Blockchain, distributed information sharing, and digital assets have proven that decentralized internet protocol if permitted, can profoundly improve socio-economic infrastructure.

From the beginning and adoption of Blockchain technology, there have been specialized Blockchain use cases like Bitcoin: primarily a digital currency, and smart contract network like Ethereum, which enables a large number of decentralized applications (DApps) for the Ethereum Virtual Machine (EVM).

These Blockchains have experienced many ups and downs in their operations, such as energy inefficiency, network congestion, and ineffective governance models.

Evmos is a new frontier in the crypto space that seeks to integrate Ethereum assets and decentralized applications with the Cosmos ecosystem’s software development kit (SDK).

Evmos is a project that deals with proof-of-stake (PoS) networks that enables value transfers between Ethereum and Cosmos ecosystems. The PoS is developed using the Cosmos software development kit (SDK).

Developers can easily use Evmos to deploy Ethereum smart contracts on Cosmos networks tailored for certain apps, and also create cross-chain DApps more quickly and affordably by fusing the EVM and Cosmos ecosystem.

Also, Evmos interoperability of Cosmos and Ethereum blockchains enables developers to use Ethereum’s programming language, “Solidity” to build several decentralized apps (DApps) and get access to shared liquidity and value transfer thanks to the Cosmos’ Inter-Blockchain Communication (IBC) protocol.

What Is SDK?

This is a tool that is used in the framework development of the Proof of Stake (PoS) Network, and as mentioned earlier EVMOS is a Proof of Stake layer one Platform; as such, SDK is needed and used in building Evmos.

Also, SDK has a flexible framework that allows developers to take advantage of pre-built and tailor-made models and test-run them before launch.

How Does Evmos Work? Tendermint Core and BFT

EVMOS sets itself apart from other network application layers by utilizing Byzantine Fault Tolerance (BFT) from Tendermint Core.

The phrase, Byzantine Fault Tolerance (BFT) comes from a conjecture known as the Byzantine Generals’ Problem (BGP). This theory involves Byzantine generals, each of whom controlled an army and resided close to a stronghold.

The nodes serve as generals in a decentralized blockchain with several nodes like in Evmos. As a result, the Evmos can keep operating even if certain nodes malfunction.

Moreover, BFT offers Tendermint developers an open-source library to help with EVM compliance tools on the Cosmos ecosystem to give a faultless experience when utilizing Ethereum tools. Also, BFT can function even when some of its nodes malfunction.

Furthermore, the PoW process necessitates waiting for numerous confirmations before a transaction becomes irreversible, practically all Bitcoin wallets now rely on trusted servers for transaction validation.

Evmos, in contrast to similar systems, offers practically instantaneous and safe mobile-based payment verifications, realizing trust-minimal and practical mobile payments.

What Is the EVMOS Token?

The blockchain’s utility token, EVMOS aids the activities of the Evmos blockchain and facilitates flexible interaction between users, and helps developers build on the network.

Thus, by rewarding network validators and developers, the EVMOS token is essential in maintaining the security of the Evmos blockchain, transaction fee payment, and staking.

Also, it is the second asset on an EVM that supports network participation through governance voting in addition to supplying energy for network transactions and validation procedures.

Nevertheless, you are in charge of navigating the Evmos decentralized autonomous organization (DAO) and participating in decision making thus, being able to determine the ecosystem’s future as a token holder.

EVMOS Tokenomics

EVMOS is intended to have a high rate of inflation, with the release of about 300 million tokens in the first year. The release of the tokens follows an exponential decay schedule, which reduces inflation annually. In a procedure known as “The Half-Life,” the initiative intends to issue one billion tokens in total over four years.

The Half-life Formula Exponential Decay

While this makes the project’s long-term theoretically deflationary, the developers see EVMOS as an asset with an uncapped supply. However, the team advises the community to vote for another token supply system after the first four years. For instance, they can recommend a linear or constant system if the rewards become too little.

The DApp Store

In Evmos, gas fees are not burned funds that merely boost the blockchain ownership shares of validators. The platform now divides fees as incentives between developers and validators for their services through an inbuilt, mutual fee revenue mechanism. This revenue mechanism/fee distribution is known as the DApp store.

You can think of it as an app store, where some income from the app sales is allocated to the store operator and some to the developer. However, in the DApp store, the setup is an eternal, active service where the operator leases much of the infrastructure necessary to operate a DApp.

The store incentivizes developers based on the value and impact of their DApps, instead of their capacity to accelerate a new governance token. In this regard, developers building on Evmos receive a genuine stake in the development and governance of the platform. Initially, the fee is split on a 50/50 basis between deployers and validators but can be changed through a governance proposal.

Settlement Chain

The settlement chain is executed as a Celestia roll-up using Optimistic Tendermint. The settlement chain uses Celestia as the information accessibility layer and Evmos applications (smart contracts, interoperability, composability, etc.) to offer a complete EVM-equivalent stack for interoperable smart contracts on Cosmos and EVM worlds.

Contrary to Ethereum Mainnet, the network is augmented exclusively for roll-ups, as such, roll-ups don’t compete for transaction fees with non-rollup activities, reducing the fees further while increasing throughput.

Features of the Evmos Blockchain

Every DeFi project would dearly love to get access to certain Ethereum-based applications. The advantages of Evmos’ Proof of Stake (PoS) system are compatibility, security, fast transaction, affordable gas fees, and an increasing user base.

Compatibility

The Ethereum blockchain can be used to create DeFi apps because it is well-established, secured, and has a large user base. However, it has lagging results in high running costs and sluggish transaction times.

EVM-compatible layer one chains, such as Evmos, enable developers to deploy Ethereum apps to a large user base, enhancing the apps’ usability.

We previously noted that the Cosmos SDK is used to create Evmos and it is a tool for creating PoS or Proof-of-Authority (PoA) networks. SDK also enables developers to use pre-built and custom models and test them before release.

Instead of a framework focused on virtual machines, it employs a flexible framework. You will be able to appreciate why the Cosmos SDK is the best choice for building interoperable, and application-specific networks once you have a firm grasp of the distinctions between those two frameworks.

Smart Contract

Smart contracts are used in virtual machine networks like Ethereum to create apps. Although the framework is perfect for some applications, such as those that require precise command execution, it is almost hard to create multi-layered programs with it. It is interesting to note that, Ethereum has the largest development community among the smart contract networks.

Fast Transactions

Evmos users also gain from super-fast transaction times, great throughput, and lower costs. Users enjoy fast transactions without having to wait for hours for a transaction to be completed. This is one of the reasons EVMOS is satisfactory for users, as a reduction in network congestion leads to reduced cost, causing developers to scale DApps effectively.

Evmos Ecosystem

Source: EVMOS Ecosystem

Numerous web3 applications and projects have been developed on the EVMOS ecosystem. Let’s look at some of them.

Decentralized Finance (DeFi)

4T2: Is a decentralized yield-boosting mechanism, built on the Evmos blockchain, that aims to maximize liquidity provision throughout the entire Cosmos ecosystem.

ASTEROIDS MONEY: Is an Algo stable coin backed by Evmos that bridges the gap between Ethereum, Evmos, Cosmos, and its ecosystem.

AUTOFARM: Is a yield optimizer, a DEx aggregator, and an intelligent portfolio manager. These are the three main product offerings of this chain-neutral, yield-aggregating DeFi protocol. It’s a one-stop DeFi platform with multi-chain DEx and yield aggregation.

On AutoFarm, Evmos has been integrated because of its enormous space, and AutoFarm is one step closer to becoming a one-stop DeFi store.

Other DeFi applications include AAVE, Kinesis Labs, Diffusion Finance, FRAX, AND NOVADAO.

Infrastructure and Tools

ANKR: A utility token with a variety of applications. It can be used as a payment method to access services on the Ankr network as well as for simple voting on grant proposals. Also, Ankr has a good reputation as the fastest, most dependable web 3 infrastructure.

BAND PROTOCOL: A cross-chain data oracle platform that links actual data to smart contracts and APIs; safe and scalable decentralized cross-chain oracle. Also, it’s important to know that external data and APIs are connected to smart contracts.

BLOCKSCAN: By simply connecting their wallets, BlockScan enables Ethereum users to interact with one another. Besides, it is utilized to create, integrate, and launch specialized Blockchain projects with BlockScan as well as automate and secure important business transactions.

Dashboard

BLOCK SPOT: An educational and informational platform that offers fascinating subjects for investors and enthusiasts. Being the largest Blockchain data platform is its goal.

Wallets And Custodians

Cryptocurrency keys are kept safe and accessible in wallets, which are secure devices, though Evmos adds extra security to wallets. Here are a few examples: FoxWallet, Evmos.me, Disperze wallet, Kepler, FalconWallet, and CypherD wallet.

Non-Fungible Tokens (NFTs)

NFTs are non-fungible tokens that are typically made using the same kind of coding as cryptocurrencies. Examples of NFTs connected to Evmos include Cosmic Horizon, Evmos Explorers, and Evmos Punks.

Decentralized Autonomous Organization (DAO)

This is a decentralized system in which decisions are made by a community centered on a particular set of regulations enacted on a Blockchain, rather than by a central authority. For instance, Layer2 Pad, NovaDao, and OwlDao are some examples of DAOs that run on the Evmos ecosystem.

EVMOS: Bridging the Cosmos and EVM Ecosystem

Cross-chain communication between Ethereum and Cosmos ecosystems is promoted by Evmos. Evmos is enabling users to avoid Ethereum’s high transaction fees and network congestion by tying the two chains together. Also, it gives Cosmos developers relatively unrestricted access to the industry-leading smart contract network (Ethereum has the largest development community among the smart contract networks).

To increase lending inside the Evmos ecosystem and the larger Cosmos community, Evmos installed Aave V3 on its network.

Evmos serves as a portal for users of Ethereum and other EVM chains to access the Cosmos universe. This is made possible via developer-focused incentives, cross-chain composability, and compatibility with other Cosmos blockchains.

The Aave-Evmos Decentralized Exchanges (DEx) accept EVMOS, AAVE, USDT, USDC, DAI, wBTC, FRAX, and ATOM among other tokens.

A settlement layer for EVM roll-ups was developed by Celestia in collaboration with Evmos. With the lowest possible transaction fees, EVM roll-ups let users conduct off-chain transactions while securely sharing the transaction information with an on-chain consensus and information accessibility layer.

Roll-ups provide high throughput to developers and users by processing transactions outside Layer one (L1) chains, which eases congestion. \

Is EVMOS a Good Investment?

EVMOS is compatible with Ethereum Virtual Machine and built using the Cosmos SDK; its goal is to integrate Ethereum assets and DApps with the Cosmos interoperable blockchain.

Using the PoS algorithm, Evmos guarantees fast transactions, next to zero fees, and most importantly provides accessibility to Ethereum’s rich assets. It is basically extending the capabilities of IBC and setting the groundwork for its integration with current EVM chains. Evmos has become one of the biggest networks on Cosmos by market capitalization, and considering that more developments are coming, we could soon see a gigantic growth of its ecosystem.

News on Evmos (EVMOS)

On November 2nd, 2022, Evmos announced that they have concluded their first token sale of $27M to support Evmos development. The round was led by Polychain Capital with participation from some of the major players in the Web3 space and other angel investors. Furthermore, following the announcement, the platform has entered into a partnership with Anchorage Digital to provide custody and staking services in an effort to increase institutional adoption of the inter-blockchain communication protocol and make it more accessible to investors. Evmos is dedicated to providing dApp developers with a range of resources. In order to compensate developers sustainably, Evmos directs half of each transaction fee to the developers whose dApp is being used, rather to all of the transaction fees going to validators or being partially burned as they are on Ethereum.

Useful References

For the latest updates about Evmos, you can visit:

• The official website
• Twitter
• Discord
• GitHub
• Telegram