In a latest episode of the SlateCast, Akiba and Nate welcomed Sunny Aggarwal, the founding father of Osmosis, for an insightful dialogue concerning the Cosmos ecosystem, the rise of hyperbitcoinization, and the way forward for DeFi.
Hyperbitcoinization and the Position of Cosmos
Sunny expressed his long-standing imaginative and prescient of constructing the app layer for Bitcoin, a purpose that motivated his involvement with Cosmos from the very starting. He defined:
“Seven years in the past, 2017, I assumed we’re constructing for Bitcoin. How is that this serving to Bitcoin? And in order that’s after I began engaged on Cosmos as that is how we construct the app layer for Bitcoin.”
The introduction of Ordinals and different developments inside the Bitcoin ecosystem has reignited the “Bitcoin Season 2” or “Bitcoin Renaissance,” presenting a possibility for Cosmos to play a major function within the hyperbitcoinization motion.
Alloyed Property: Addressing Liquidity Fragmentation
One of many key matters mentioned was the idea of “Alloyed Property,” an answer designed to deal with liquidity fragmentation throughout completely different blockchain ecosystems. Sunny defined the rationale behind this revolutionary strategy:
“What occurred was a few yr or two in the past, Osmosis used governance and the DAO principally voted to make Axelar ETH the canonical ETH on Osmosis. The issue is that during the last two years, a number of bridges have come, like Wormhole, but in addition much more of exercise within the Ethereum ecosystem has shifted in the direction of L2s.”
Alloyed Property permit customers to deposit and withdraw tokens from numerous supply chains, comparable to Ethereum L2s, whereas sustaining fungibility and bettering the person expertise.
Neighborhood Engagement and DeFi Innovation
Sunny highlighted the significance of group engagement in Osmosis’ success, stating that the workforce conducts quarterly buyer surveys to collect suggestions and form the mission’s growth roadmap. He emphasised the necessity for steady innovation within the DeFi house, citing the potential of mixing social parts and DeFi:
“Particularly with the rise of social, that’s the place a few of the actually fascinating stuff comes, whenever you mix social and DeFi. One among my issues has at all times been DeFi and crypto in the present day may be very a lot designed on this mannequin of the world, the place we stay in a trustless system, however I really simply don’t assume that’s really the true state of the world.”
Centralization vs. Decentralization Commerce-offs
Addressing the controversy round centralization and decentralization, Sunny expressed considerations concerning the shift in the direction of centralized execution within the Ethereum L2 ecosystem, stating:
“The issue is the decentralization offers you extra than simply the secure, you understand, in a blockchain, you’re in search of a bunch of various properties, proper? You’re in search of security, which suggests the proper execution of the protocol, however you’re additionally in search of liveness. Is the system at all times going to be on-line? You’re in search of censorship resistance.”
He advocated for mesh safety, which leverages financial incentives throughout networks to boost safety and validity with out compromising decentralization.
The episode additionally offered beneficial insights into the way forward for Osmosis, the Cosmos ecosystem, and the broader DeFi panorama. With a robust concentrate on group engagement, innovation, and sustaining the core rules 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 that 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
