Delphi Labs is turning research into a new crypto ecosystem… and it’s not Ethereum

Crypto research firm Delphi Digital has shifted the focus of Delphi Labs’ protocol research and development (R&D) arm to the Cosmos ecosystem.

Delphi Labs is the R&D protocol arm of Delphi Digital, with a team of around 50 people aimed at incubating “Web3 primitives”. The R&D arm previously focused on research and protocol development on Terra, but was forced to look at other ecosystems after its collapse in May.

Founded in 2018, Delphi Digital is an independent research and investment firm providing institutional-level analysis of the digital asset market, which launched its Labs wing in 2021.

In a lengthy report published on September 8, Delphi Digital said its team analyzed a number of different blockchain ecosystems to determine which was best suited for its needs, particularly in relation to decentralized finance (DeFi), but ultimately decided the Cosmos ecosystem.

Describing it as “an ecosystem of interoperable blockchains,” Delphi Labs decided Cosmos was the best ecosystem to focus its R&D on. He pointed to Cosmos’ ability to take advantage of a growing number of application chains and cross-chain interoperability as major positives.

The company also cited speed, chain liquidity, decentralization, cross-chain interoperability, technical maturity and code portability as key factors in its decision to back Cosmos, despite the ecosystem being somewhat lacking in compared to competitors like Ethereum.

Delphi Digital suggested that despite Ethereum hosting the majority of DeFi applications, the speed and cost of using the Ethereum base layer is the blockchain’s main drawback, resulting in a poor user experience.

Related: Why interoperability is key to mass adoption of blockchain technology

The report noted that aggregations allow Ethereum to overcome this problem, but sees cross-chain interoperability and outages or latency issues as important issues.

Polygon (MATIC), Optimism (OP), Starknet (STARKNET), Cosmos (ATOM), Avalanche (AVAX), Solana (SOL), Polkadot (DOT), Near (NEAR) and Celestia (CELT) were all compared in the tally, with Cosmos to score the highest overall score.