Sei Network Plans to Drop Cosmos Compatibility in Favor of Ethereum

A proposal has been put forth by a Sei Network developer to discontinue the blockchain's support for Cosmos, citing the need to simplify the platform and enhance user experience. If successful, the proposal will restrict Sei users to transactions compatible solely with Ethereum. According to Philip Su, Engineering Lead at Sei Labs, this transition will lead to increased adoption, improved developer experience, and a more unified community. The decision comes as various blockchain infrastructure builders vie for dominance and aim to attract developers.

Ethereum-based infrastructure, utilizing the Ethereum Virtual Machine (EVM), is the backbone of most decentralized finance applications. However, other blockchains such as Solana and Cosmos have introduced their own software, including the Solana Virtual Machine (SVM) and CosmWasm. Sei currently supports both EVM and CosmWasm, but this dual architecture introduces significant complexity and friction for both users and developers. A shift away from CosmWasm could have substantial implications for its adoption.

Despite potential drawbacks, the Sei Network has experienced steady growth since its launch in 2023, with deposits to DeFi apps reaching an all-time high of $1 billion. Barry Plunkett, co-CEO of Interchain Labs, noted that even if Sei discontinues Cosmos support, it will remain a Cosmos-based blockchain, allowing users and developers to leverage certain Cosmos features like staking and governance. The introduction of EVM support in July 2024 marked a significant turning point for Sei, as it enabled developers to create DeFi apps using either CosmWasm or the EVM, leading to a surge in activity.

Data compiled by Sei Labs on Dune Analytics shows that new Sei users predominantly choose to use the EVM over CosmWasm. The current cross-compatibility comes at a cost, introducing unnecessary overhead and complicating debugging and testing. The Sei community will discuss the proposal in detail and provide opportunities for feedback during a call hosted by Build with Sei on May 14.