Content editor: Yao Erliu

Content collation: Yao Erliu

What is Cosmos’ modular blockchain?

Since last year, the topic of modular blockchain has been at the top of the trend, especially Celestia, a modular project in the Cosmos ecosystem. Yes, it was the TIA project that amazed everyone at its launch. It once became the leader of the modular blockchain sector, and also caused a number of projects such as DYM and OMNI to enter the top 100 in terms of market value.

A modular blockchain is one that focuses on handling a small number of responsibilities and outsources the rest to one or more independent layers. By decomposing the core components of a Layer 1 blockchain, 100x improvements can be made on a single layer, resulting in a more scalable, composable, and decentralized system.

Now the Cosmos ecosystem has once again launched the dark horse project Initia in the modular track. Let’s take a look at the strength of this heavyweight!

1. Initia modular full-chain Rollup blockchain

Initia is a full-chain Rollup network built by fusing a novel L1 with an application-specific L2 infrastructure system. The Initia platform provides product-ready Rollups that enable teams to build scalable sovereign systems while eliminating the user experience complexity that end users face when interacting with the modular multi-chain universe. Initia has a complete technology stack that implements a set of chain-level mechanisms to align economic interests between users, developers, L2 application chains, and L1.

Initia is inspired by Apple's design philosophy. Initia aggregates blockchains to make them as easy to access and integrate as iPhone applications. Its core technology includes a customized layer 1 blockchain tightly integrated with layer 2 infrastructure, providing security, liquidity and interoperability. The product stack includes multi-chain browsers, wallet tools, bridges, centralized application platforms and on-chain identity systems to create a unified and user-friendly blockchain experience.

Initia rebuilds the technology stack

At its core, Initia is about rebuilding the entire technology stack, introducing a base Layer 1 blockchain integrated with a custom Layer 2 infrastructure. This integration fosters a tightly coupled modular network ecosystem. Having a complete technology stack enables Initia to implement chain-level mechanisms that coordinate the economic interests of users, developers, Layer 2 application chains, and the Layer 1 chain itself.

Initia Layer 1 acts as an orchestration layer, facilitating the coordination of security, liquidity, routing, and interoperability in a woven rollup network through the VM-agnostic Optimismitc Rollup framework (OPinit Stack).

The framework is powered by fraud proofs and rollback capabilities, allowing rollups to be safely scaled based on the CosmosSDK in environments such as EVM, MoveVM, or WasmVM, while leveraging Celestia’s Data Availability (DA) layer.

Introducing Enshrined Liquidity, a unique mechanism where single or paired INIT tokens are staked with validators to create liquidity hubs within the Layer 1 chain.

This mechanism enhances security, improves liquidity, and acts as a Layer 2 router, enabling seamless token transfers across Rollups.

Initia’s product stack unifies the architecture, providing users with a one-stop chain experience when interacting with Rollup:

InitiaScan: A multi-chain explorer with VM specific tools and information.

Wallet Widget: Supports EVM and Cosmos wallet signatures, and includes social login capabilities.

Bridget: Front-end bridge/ingress aggregator that integrates directly into rollup.

Initia App: The centralized platform for all things Initia related.

Initia Usernames: A blockchain-wide on-chain identity system.

Initia Wallet: A dedicated wallet designed for navigating the vast Initia ecosystem.

2. Initia’s Layer 1

Initia's Layer 1 protocol utilizes CometBFT (formerly known as Tendermint) for consensus and integrates Move VM to implement smart contract functionality.

CometBFT uses a deterministic consensus mechanism to select block proposers through weighted round-robin. This power distribution method makes the participation of nodes more fair and balanced. The proportion of equity determines the chance of becoming a leader, thereby ensuring the fairness and effectiveness of the consensus process, and excels in security and attack resistance.

The extremely fast transaction confirmation speed and the introduction of zero-knowledge proof technology to improve efficiency and security to promote the development of blockchain and distributed systems consensus algorithm also make Cosmos one of the largest ecological protocols at present.

At the same time, Initia's L1 architecture also integrates native DEX, which has similar functions to Balancer, realizing a weighted and stable Swap pool at the center of the multi-chain network.

Liquidity Moat builds a resilient liquidity foundation on L1 while providing enhanced staking returns, allowing locked liquidity for trading and yield generation, and enabling seamless token movement and flexible Gas supply within the ecosystem through the Minitia inter-router and Just-in-Time Gas.

3. Initia’s Layer 2 Network Minitia

Minitias is a layer 2 application chain in the Initia ecosystem, featuring a fully functional CosmosSDK blockchain that utilizes optimistic rollups for settlement. These chains are characterized by fast block times of 500 milliseconds and the ability to process more than 10,000 transactions per second, positioning them as a high-performance platform for a wide range of applications.

OPinit Stack (Cosmos Optimistic Rollup Framework): OPinit Stack is the first Optimistic Rollup framework tailored for the Cosmos ecosystem, inspired by Optimism's Bedrock specification.

Minitias' native consensus mechanism relies on Initia Layer 1 for security and data settlement. This structure can integrate advanced rollup functions and use standard CosmosSDK modules as well as custom modules. Transactions are also efficiently sorted and batched to L1 and Celestia, providing a transparent and secure environment for operation and verification.

Minitias has a throughput of up to 10,000 TPS and a block time of 500 milliseconds, supports Cosmos interoperability and Omnitia shared security through IBC, and is compatible with Celestia data availability, MoveVM, WasmVM, and EVM.

Its native features include vested interest programs, token rebates, and Omnitia messaging modules. It provides advanced tools such as InitiaSDK, WalletSDK, and 1-Click Deposit Widget, and integrates with third-party services and oracles to build a versatile development platform for decentralized applications, supporting the Initia ecosystem's powerful interconnected infrastructure.

4. Initia Innovation Highlights

The Initia platform provides developers and users with a flexible, secure, and efficient blockchain development and usage environment through its modular architecture, simplified development process, out-of-the-box functionality, focus on user-friendliness, strong interoperability and data availability, highly customized aggregation, and shared security and expansion capabilities.

Modular architecture for flexibility

Initia achieves the flexibility of modular architecture by decoupling each layer of the technology stack (execution, settlement, consensus, and data availability). Developers can freely customize each module, using Celestia's Data Availability Sampling (DAS) and Namespace Merkle Tree (NMT) technology to enable light nodes to verify data by only selecting relevant transactions, greatly improving the efficiency and scalability of the system.

Reduce development complexity

While modular blockchains have been criticized for increasing development complexity, the Initia platform simplifies the experience of using multi-chain systems by vertically integrating the technology stack. It pre-makes targeted integration decisions, reduces choice overload, and enables developers to focus on building successful products rather than dealing with the complexity of the underlying infrastructure.

Highly customized summaries

Minitias allows teams to develop extremely versatile applications in their favorite smart contract language and customize rollups across all modules of the CosmosSDK. Examples include leveraging AuthZ for native account abstraction, or using Skip's Protocol-Owned Builder module to unlock EIP1559-like fee markets, mempool channels tailored for programmatic gas-free transactions, and even sorter-enforced top-level block oracle updates.

Shared security and scalability

Initia enables shared data availability and security for thousands of intertwined applications with Celestia’s DAS and NMT solutions. Through the shared DA layer, Initia L1 validator sets, challengers, and instant bridge operators access state data to build fraud proofs to dispute invalid rollup operations. Omnitia Shared Security allows validator nodes to natively integrate Celestia light nodes to verify data on each Minitia without downloading the entire block, enabling scalability.

Strong interoperability and data availability

Initia's OPinit Stack framework enables teams to build vertically integrated applications in any computing environment (EVM, MoveVM, or WasmVM), while accessing interoperability and data availability through CosmosSDK and Celestia. This virtual machine-agnostic architecture design ensures interoperability and data sharing between different applications.

Out-of-the-box features

Initia provides comprehensive out-of-the-box functionality to meet the needs of application developers. Highlights include:

  • Instant bridging: enabling fast and secure asset transfers between different blockchains.

  • Native USDC and CCTP access: Support for widely used stablecoins and cross-chain payment protocols.

  • Token interchangeability across Minitia: Tokens are freely interchangeable across different Minitia, regardless of the choice of VM.

  • Oracle interface: provides reliable data source connection.

  • Fiat rails and developer tools: Reduce development complexity and accelerate time to market.

5. Why Initia became a dark horse project

First of all, Initia is built on the Cosmos ecosystem. Friends who are familiar with the mechanism of the Cosmos project can feel the ferocity of the Cosmos modular track. When Celestia was first launched, it led to the chapter of modular development.

This is not only reflected in the market value of the project products, but also in the unambiguous airdrops in marketing. In terms of interaction, Cosmos' module track has never been stingy with airdrops, which has brought very high popularity to the entire ecological project in terms of reputation. This has also led to the success of module protocol layer projects such as Celestia and Dymension, including Cosmos.

As a result, Celestia's market value is still around US$1.5 billion, and Dymension's market value fluctuates between US$500 million and US$400 million.

Initia not only made a wise choice of Cosmos in terms of ecology, but also recently launched an incentive testnet activity to attract users. Combined with the previous experience of Celestia and Dymension, Initia has won the favor of many users before the mainnet is launched.

In addition, two of Initia’s core developers, Zon and Stan Liu, worked at Terraform Labs during its heyday. Terraform Labs is the driving force behind the Cosmos-based Terra blockchain and its sister stablecoin UST, and has never been vague about algorithms and innovations.

In October 2023, Initia also received pre-seed investment from Binance Labs.

These halos have made Initia, which has just launched its test network, attract as much attention as a rich lady born with a silver spoon in her mouth. Therefore, it is not an exaggeration to call Initia a dark horse project.

6. Initia’s Investor Lineup

Initia has completed two financing events so far, with a total disclosed financing amount of up to US$7.5 million.

The first financing event occurred in the pre-seed round of financing on October 23, 2023, invested by Binance Labs, and the financing information of this round was not disclosed.

The second financing event occurred in the seed round of financing on February 27, 2024, led by Delphi Digital and Hack VC, with participating institutions including Nascent, Figment Capital, A.Capital, Big Brain Holdings, Cobie, Nick White, Smokey, DCF GOD, Fiskantes, naniXBT, Zaheer Ebtikar, Maghnus Mareneck, OmniscientAsian, and Sawit Trisirisatayawong, completing a financing amount of US$7.5 million.

The round was a SAFE agreement with token warrants. The team declined to comment on the specific valuation but said it was in the lower nine-figure range.

7. Initia project progress

Just 15 hours ago, Initia launched a public testnet with incentive attributes. It will carry out an 8-week incentive activity before the Mainnet is released. This is an opportunity to take the first step in core applications.

Initia has been aligned with infrastructure construction and economic framework over the past year, completing tasks such as collecting NFT cards, merging and calling bans on Initia L1.

Initia and Celestia have a close relationship. Although they are in a cooperative relationship, they are still competing projects in the market. Celestia's market value is still the leading project in the modular track, sitting firmly on the throne with a market value of US$1.5 billion. The modular track will also become one of the most competitive sectors in the future Cosmos ecosystem!