Why Sei Aims to Focus Exclusively on Ethereum by Reducing Cosmos Compatibility

A developer associated with the Sei Network suggested on Wednesday to phase out support for the Cosmos blockchain, aiming to simplify the user experience by removing unnecessary complexities.

If this proposal is approved, Sei users will only be able to conduct transactions that conform to Ethereum standards.

The decision to cut Cosmos support will greatly streamline the blockchain, decrease infrastructural burdens, and enhance Sei’s standing in the wider Ethereum ecosystem, stated Philip Su, Engineering Lead at Sei Labs, in the proposal.

“This shift will promote wider adoption, enhance the experience for developers, and foster a more unified community,” he mentioned.

This initiative arises amid the ongoing competition among blockchain infrastructure developers vying for a larger share of the developer market.

The majority of decentralized finance applications are built on Ethereum-based infrastructure, which relies on the Ethereum Virtual Machine (EVM). Major blockchains like Coinbase’s Base and Binance’s BNB Chain also utilize the EVM.

However, there are competitors, such as Solana, which operates on its distinct Solana Virtual Machine (SVM), while Cosmos has introduced CosmWasm.

Sei currently supports both EVM and CosmWasm. “Although this dual framework has allowed for flexibility, it has also led to increased complexity and friction for users and developers,” Su remarked.

Removing CosmWasm support could significantly impact the software’s overall adoption in the industry.

Since launching in 2023, the Sei Network has seen steady growth. Current deposits in decentralized finance applications on the network have reached $1 billion, according to recent data, ranking it as the 15th largest blockchain by total value locked.

The Cosmos Hub, a prime development platform for Cosmos, has not responded to inquiries regarding this matter.

Reducing Unneeded Overhead

When Sei was first launched, it did not support EVM, which hampered its growth.

In the early stages, the network drew only about $50 million in deposits across its DeFi applications, a stark contrast to other blockchains like Sui, which exceeded $600 million in deposits in a similar timeframe.

This changed in July 2024 when Sei unveiled its second version, allowing users to develop DeFi applications utilizing either CosmWasm or the EVM.

Developer activity surged as both developers and investors showed keen interest in the blockchain. Among DeFi developers, the EVM is recognized as the most prevalent platform. By introducing EVM support, Sei was able to attract a much larger number of developers.

Recent data from Sei Labs indicates that new users are increasingly opting for EVM over CosmWasm.

Moreover, the current dual compatibility is accompanied by certain challenges, Su highlighted, stating it adds “unnecessary complexity to the codebase and complicates debugging and testing efforts.”

However, it remains uncertain whether others in the Sei community will share this perspective.

A meeting hosted by Build with Sei, a group overseen by the Sei Foundation, is scheduled for May 14 to delve deeper into this proposal and provide developers and community members with a chance to discuss and offer feedback.