Delphi Labs switches its research emphasis away from Ethereum and toward a new crypto ecosystem

As part of its investigation of key ecosystems to establish a new focus for its R&D division, Delphi Digital has chosen Cosmos over Ethereum because it believes Ethereum is too sluggish and costly.

Delphi Digital has transferred the emphasis of its protocol research and development (R&D) subsidiary Delphi Labs to the Cosmos ecosystem.

Delphi Labs is the protocol R&D branch of Delphi Digital, with a staff of around 50 tasked with incubating “Web3 primitives.” Prior to its collapse in May, Delphi Labs was primarily focused on studying and creating protocols for Terra.

Delphi Digital is 2018-founded independent research and investing organization that delivers institutional-grade analysis of the digital asset market. Its Labs division was created in 2021.

In a long study issued on Thursday, Delphi Digital said that its team investigated a variety of blockchain ecosystems to determine which was most suited for its purposes, especially in terms of decentralized finance (DeFi), but eventually chose the Cosmos network.

Delphi Labs determined that Cosmos, which it describes as “an ecosystem of interoperable blockchains,” was the optimal environment for its R&D efforts. Cosmos’ potential to profit from a growing number of app chains and its interoperability between chains were cited as important advantages.

The company also cited speed, chain liquidity, decentralization, cross-chain interoperability, technological maturity, and code portability as important considerations in its choice to adopt Cosmos, despite the ecosystem’s relative deficiency in comparison to Ethereum.

According to Delphi Digital, despite the fact that Ethereum hosts the majority of decentralized apps (DApps), the speed and cost of utilizing the Ethereum base layer is the primary disadvantage of the blockchain, resulting in a poor user experience.

The paper notes that rollups enable Ethereum to circumvent this issue, but identifies interoperability across chains, outages, and latency concerns as significant obstacles.

The survey contrasted Polygon, Optimism, Starknet, Cosmos, Avalanche, Solana, Polkadot, Near, and Celestia, with Cosmos ranking the highest overall.

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