Informal Systems

High-Level Overview

Informal Systems is a Canadian-based technology company founded in 2019, specializing as a core developer of the Cosmos Network software and protocols, including the Tendermint consensus engine, IBC (Inter-Blockchain Communication) interoperability standard, and Cosmos Hub.[1][2][5] It operates multiple business lines: Informal Staking as a leading Proof-of-Stake validator and IBC relayer with over $40 million staked (peaking at $100 million in 2022), a fully booked security auditing service for Cosmos projects and beyond, and tools like the Apalache model checker for scalable verification of large systems.[1][2][3] Serving blockchain developers, protocols, and ecosystems like Cosmos, Informal solves critical problems in interoperability, consensus security, and formal verification to enable trustworthy decentralized software and money transfers.[2][5] The company has raised $5.3 million in funding (June 2023), employs around 60 people across Toronto, Switzerland, Austria, the US, and UK, and shows growth momentum through expanding audits, infrastructure services, and open roles in Rust and Go.[1][2][3]

Origin Story

Informal Systems emerged in 2019 from expertise in blockchain protocol design, positioning itself at the forefront of the Cosmos ecosystem's development.[1][2] The cooperatively-owned and governed team comprises highly technical researchers, software engineers, infrastructure leads, principal scientists, and product managers—boasting some of the world's top protocol designers who understand low-level smart contract and protocol mechanics.[2][4] Key early focus was building and maintaining core Cosmos components like Tendermint and IBC, alongside launching Informal Staking for validation and relaying services.[1][2] Pivotal moments include securing investments like CMCC Global's Titan Fund backing, recognizing their blend of research and operations, and achieving product-market fit with staking highs of $100 million amid market booms, even as conditions softened to $40 million.[2]

Core Differentiators

• Deep Protocol Expertise: Designs and maintains foundational Cosmos tech (Tendermint, IBC, Cosmos Hub) with low-level understanding of consensus and interoperability, extending to security audits for major ecosystem projects.[1][2]
• Security Leadership: Informal Security offers rigorous audits and partnerships, fully booked in 2025, covering Cosmos solutions and expanding to new ecosystems; includes tools like Apalache for faster, scalable verification vs. TLA+.[2][3]
• Infrastructure Reliability: Informal Staking provides validator, relayer, and interchain services with proven scale ($40M+ staked), demonstrating strong product fit.[1][2]
• Technical Talent & Tools: 60-employee team excels in Rust, Go, and formal methods; develops open-source like ibc-rs, hermes, and malachite for interchain trust.[2][3][5]

Role in the Broader Tech Landscape

Informal Systems rides the interchain and modular blockchain trend, enabling seamless communication across sovereign chains via IBC, which powers Cosmos' "internet of blockchains" vision.[1][2][5] Timing aligns with rising demand for secure, verifiable DeFi, interoperability post-Ethereum scaling wars, and multi-chain adoption amid fragmented ecosystems. Market forces like Proof-of-Stake dominance, regulatory scrutiny on security, and growth in Cosmos (e.g., 100+ chains) favor their validator and audit services.[1][2] They influence the ecosystem by maintaining critical infrastructure, auditing top projects, and advancing formal verification tools, fostering trust in decentralized money and software across Interchain.[2][4][5]

Quick Take & Future Outlook

Informal Systems is poised to scale as a billion-dollar interchain infrastructure leader, leveraging booked audits, staking recovery potential, and expansions into new ecosystems with tools like Apalache.[2][3] Trends like AI-driven verification, zero-knowledge proofs, and Cosmos 2.0 upgrades will amplify their protocol design edge, while market rebounds could restore $100M+ staking. Their cooperative model and technical depth position them to shape trustworthy multi-chain futures, evolving from Cosmos core to universal blockchain security providers—reinforcing their role as the backbone of verifiable decentralized trust.[1][2][4][5]