Posted 3 weeks ago | by Catoshi Nakamoto
Parachains are finally going live, and no I’m not talking about ATL favorite Two Chainz going on tour, although that would be pretty exciting too. What I’m actually talking about is the next phase in the Polkadot road map, where some of its most innovative architecture is finally going live, giving the network massive scaling capabilities. The parachain auctions on Polkadot are a unique part of crypto and the last auction saw those projects pump like no bodies business. So grab some of the GOOD DRANK and smash the like button.Read More
Let’s get it.
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In this video we’re going to be covering the launch of the first parachains on Polkadot.
Polkadot, IT’S A VIBE. But DOT isn’t just a run of the mill blockchain project made by former Ethereum developer Gavin Wood for fun. It’s here to rule the world. This auction on DOT is a highly anticipated event that has been in the making for over five years. For a good portion of this time, Polkadot has been one of the most important assets in the crypto ecosystem, but there hasn’t actually been much activity on the network. Instead of just rushing to market with a fork, Polkadot has been working on a unique blockchain architecture that takes the diverse needs of the industry into account. Parachains act as their own layer one blockchains that can be custom made for a variety of different use cases, but they will be tapping into the Polkadot base layer for security.
This is really not that much different from Ethereum’s rollup roadmap, where a large network of independent blockchains will all use a base layer blockchain as a hub, but they are using different programming languages and different words to describe what’s taking place. Polkadot is referring to its base layer as a “layer zero” and describing its parachains as layer one networks, while the Ethereum base layer is usually called the layer one, and the rollups networks are recognized as the second layer. Even though Polkadot and Ethereum have very different architecture, the basic mechanics of how these layers interact with each other and the scaling benefits that come along with this are very similar. Polkadot has the advantage of doing this from the ground up, instead of working to fix a moving train, and we now have an opportunity to get in on the ground floor of a new crypto ecosystem.
The price for Polkadot has been ranging between 25 and 50 dollars over the second half of this year, and is currently trading on the low side around XX dollars at time of recording. The price may have been a bit boring for Polkadot holders recently, but with allt his new activity coming into the network, this could be a good time to look for an entry point.
The first parachains to go live are Moonbeam, Acala, Parallel Finance, Clover and Astar.
Moonbeam is one of the most popular parachains on Polkadot, which makes sense considering that this is one of the top EVM-compatible chains, so developers can very easily port applications over from Ethereum, Polygon, Binance Smart Chain or any other network that uses the EVM. It’s also important to remember that this is one of the things that finally caused the price of Avalanche to start taking off over the past few months. After the introduction of the EVM-compatible C-Chain on Avalanche, the network got a new inflow of activity from people checking out new applications, farming airdrops and looking for new yield farming opportunities. It is very possible that Moonbeam could bring this level of activity to Polkadot as token incentives start to show up on new Dapps and platforms.
Moonbeam has its own token called Glimmer, with the ticker GLMR, and it is used for gas and staking on the Moonbeam network. This is an extension of the Moonriver platform that was previously launched on the Kusama network. As we have covered in previous videos on Polkadot, Kusama is where many applications and features are being deployed before they can be fully operational on the Polkadot chain. Developers have called this a canary network instead of a test-net, because although many apps will eventually move onto the Polkadot chain, not all of them will make the cut. There are also some projects that will exist on both blockchains with slightly different names, which seems to be the case with Moonriver and Moonbeam. Kusama is also permissionless, which means that any developers can deploy applications to the network if they want to, but this isn’t how things work on Polkadot, at least for now. In order to secure a spot with one of Polkadot’s parachains, you’ll need to win a parachain auction like Moonbeam and the other launch projects did.
In parachain auctions on the Polkadot and Kusama networks, investors have the choice to bond their DOT or KSM holders to vote for specific projects who are competing for parachain slots.
Another popular project to win a parachain auction is Acala, which is hoping to be a one stop shop for DeFi on Polkadot. This was actually the first project to win a parachain auction on Polkadot. This is definitely going to be one to watch because it has some huge backers, including the Digital Currency Group, Polychain Capital, Alameda Research, and Coinbase Ventures. It’s not everyday that you see the entire cartel sitting down at the same table, so this project probably has a bright future. This project also started out on Kusama as the Karura token, which got a ton of attention after it launched.
Another DeFi platform called Parallel Finance landed one of the first parachain spots, and they are shooting for the same market, hoping to become a “DeFi Pulse of Credit.” Parallel’s sister network on Kusama is called Heiko, and it’s basically a DeFi borrowing and lending platform.
Clover Finance is also going live, and this is a project focused on making the Polkadot DeFi ecosystem interoperable with other networks. There are even plans to be compatible with Bitcoin at some point in the future as well. Sounds like a Money Maker. Earlier this month, Clover announced a partnership with Polygon to launch a bridge connecting the Polkadot and Polygon Networks.
Astar, formerly known as the Plasm Network, is currently launching on a Polkadot parachain as well. Astar is also working on interoperability, but this team is more focused on decentralized applications in general, instead of DeFi specifically.
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In addition to these public parachains, it was also announced that Energy Web will be partnering with Polkadot developer Parity for a Consortia Relay Chain. This will require an entirely new token for the Energy Web ecosystem, but will be opt-in for users of the token.
In addition to the scaling capabilities, Energy Web was also attracted to Polkadot because of its unique on-chain governance framework. Since all of the different blockchains in the Polkadot network are totally programmable, this means the structure of the governance for each blockchain can also be tailored to individual use-cases. This is important for Energy Web because it is connected to so many companies in different jurisdictions that need to comply with different laws and regulations, or just different company policies.
A testnet version of the Consortia Relay Chain and an initial set of connected blockchains is expected to launch some time in the second quarter of next year. Comment below with your best Polkadot project and don’t forget to smash that like button.
But that’s all I got. Be blessed. Bitboy out.