While Ethereum and Cosmos had their own distinct goals at first, factors including MEV, liquidity dispersion, and widespread decentralization presented obstacles that led the two to consider formalizing their partnership. The graphic introduces EigenLayer. The business wants to introduce several advances by integrating Ethereum with Cosmos.
This will make it possible for the Cosmos community to build links related to decentralised liquidity and security within the Ethereum core source code. Ethereum, on the other hand, gains from the many experiments carried out inside the Cosmos framework.
Ethereum wants to be a centre for global settlement, while Cosmos sees a vast number of virtual city-states populating the universe. Ethereum implemented Proof of Stake, in contrast to Cosmos, which used delegated Proof of Stake.
The creatives are starting to converge as the mechanisms grow. Ethereum has developed an update plan that is focused on rollups, while Cosmos is actively looking for shared security protocols. Projects like Superchain, ZK Stack, and Polygon 2.0 become more like the integrated economies available in Cosmos as the number of Ethereum L2s rises. The safe enhancement of the crypto architecture remains the goal.
Ethereum’s innovative proposer builder separating (PBS) protocol seems to be the answer to the MEV problem, which is impacting the company’s long-term strategy. PBS in Ethereum is now done through MEV-BOOST, an out-of-protocol innovation that uses a trustworthy commit reveal mechanism.
This also applies to Cosmos, where MEV is the source of issues. Nonetheless, because every Cosmos chain is flexible, modern ePBS services are being introduced. While Skip is working with BlockSDK, Osmosis is experimenting with top-of-the-block arbitrage profit sharing. Fairblock is another option; it attempts an encrypted mempool for every chain.
The Cosmos developer community prioritizes interoperability. The IBC protocol was created to handle cross-chain light client authentication interoperability problems. Approximately 1,000 IBC connections have been made. Similar to this, espresso systems are attempting to solve Ethereum‘s interoperability problem.
The majority of Cosmos’ creativity is based on the validator set, which is a challenging claim. By offering a basis for the financial stake, EigenLayer resolves the issue and enables any stakeholder to make contributions to every POS network.
Decentralization is the main factor that links Ethereum to Cosmos. EigenLayer provides an initial connection to the vast validator pool of the Ethereum network. Cosmos is currently seeking to increase its user base, and testing has shown that Ethereum wL2 provides the best environment.
EigenLayer will keep catalyzing Ethereum and Cosmos continue to grow their cooperation.