Sei Network Proposes to Upgrade Its Architecture and Focus Solely on the EVM Model

Layer-1 network Sei has initiated a proposal to streamline its architecture and focus solely on the Ethereum Virtual Machine (EVM) model.

Layer-1 network Sei is planning to drop support for CosmWasm and native Cosmos accounts as it pivots to supporting only the Ethereum Virtual Machine (EVM), according to a new proposal.

The developer firm Sei Labs has submitted a Sei Improvement Proposal (SIP) for the community to vote on.

According to SIP-3, which is titled "Transition to Native EVM Transactions," the project will be dropping support for CosmWasm and native Cosmos addresses. This will see the layer-1 complete a shift to focusing solely on the EVM model.

The network was originally built using the Cosmos software development kit (SDK) and later upgraded to include support for the EVM with the launch of Sei v2.

The goal was to attract more decentralized finance (DeFi) developers to the chain. This is because the majority of smart contracts are deployed on Ethereum, which uses the EVM.

The move was designed to expand the network's capabilities and offer users more flexibility. It also aims to integrate more DeFi protocols and attract a wider range of developers.

However, the proposal noted that the dual architecture has also increased complexity for users and developers who have to manage both EVM and native addresses and link the two to fully enjoy network functionality.

It added that infrastructure providers and developers also have to deal with more overhead costs due to the complexities.

The network is now planning to address this problem and has decided to focus on the EVM because it has seen the majority of network activity on Sei.

According to the proposal, "Since August, EVM addresses have performed over 80% of transactions on the network."

It added that with the proposal, only EVM addresses will be able to initiate transactions, and all Cosmos-based contracts will be deprecated and subsequently removed.

The proposal recommends that "Only EVM addresses be allowed to integrate transactions on Sei. The network will support process-only transactions from EVM. CosmWasm contracts and native Cosmos message handling will be deprecated and removed."

However, it noted that Sei native addresses will remain functional for internal protocol processes such as validator addresses. Core functionalities such as governance and staking will also remain available through precompiles.

Upgrade to EVM-only to happen in three phases

Meanwhile, the proposal noted that the upgrade’s simplicity will benefit users and network stakeholders in the long run. With the network already offering one of the fastest blockchain transactions, Sei Labs expects sole EVM functionality to improve adoption and developer experience.

The proposal also broke down the planned upgrade into three high-level milestones. In the first phase, developers will create EVM pointers to make Cosmos and CosmWasm assets accessible from the EVM side.

Once that is done, the developers will deprecate all new CosmWasm deployments and disable all legacy CosmWasm contracts and transaction support for non-EVM addresses.

Unsurprisingly, the upgrade will affect all network participants. Infrastructure teams on the network will have to ensure they interact only with EVM APIs, while users will also have to migrate their assets to EVM-compatible wallets by bridging, swapping, or withdrawing their assets.

Developers building on CosmWasm also need to transfer their applications to EVM and integrate EVM-compatible front ends.

So far, mixed reactions have trailed the proposal. Most users believe it is a positive development for Sei. However, developers are concerned about the difficulty of migrating apps and contracts built on Cosmos to EVM, with some projects saying they might quit if the proposal passes.

Others believe there should be a bridge that connects Cosmos to Sei so that builders using Cosmos can retain their stack while enjoying the benefits of EVM.

Sei is up 6% as interest increases

Meanwhile, the SEI token has been up 6.6% in the last 24 hours, hitting $0.21, according to CoinMarketCap. Its positive performance results directly from the general market sentiment that has seen Bitcoin price today, 965,726.25, Monday, 28 August 2023 03:44:06 GMT -7.

However, the Sei network has also seen increased user activity and interest. With its pitch as the fastest EVM chain, it has seen its total value locked (TVL) grow, peaking at $515 million in April. According to Artemis data, it is only second to Ethereum in net flow over the last 24 hours.

With interest in the network growing, digital assets firm Canary Capital recently filed an S-1 registration for the SEI spot exchange-traded fund with the Securities and Exchange Commission (SEC).