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The race for a better blockchain is intense. But Gavin Woods, co-founder of the Ethereum blockchain, didn’t want to create the best blockchain when he launched the Polkadot blockchain this year. Polkadot’s goal is to combine the best of all blockchains through its interoperable protocol.
Polkadot is an ecosystem of interoperable blockchains known as parachutes. These chains work in parallel on the highly scalable polkadot fabric. Parachutes perform various functions as follows:
- Intelligent contract chains for the execution of chain and cross-chain actions
- Oracle chains as a bridge between real data and events and functions in the chain
- Identity chains that link personal identity information across parachutes
- Layer 1 chains for decentralized financial DApps (DeFi)
- Internet of Things (IoT) chains to support IoT interoperability with multiple chains
- Data chains for collecting and curating data across chains
Each parachute is a sovereign blockchain with its own token.
The Polkadot multi-chain structure was built on the Substrate blockchain, but owes a lot to the Ethereum developer community. With next-generation Ethereum features like sharding and parallelization, Polkadot is evolving into the blockchain highway. The real potential of the blockchain is unleashed when the ecosystem can leverage the strengths of each chain and share resources and transfer values.
Below are some of the parachutes that provide more features and services by leveraging the capabilities of other parachutes in the Polkadot multiple chain.
According to the blockchain marketplace Dapp.com, 44 DApps are currently building on Polkadot. The total number of ecosystem developers exceeds loudly PolkaProject.
The rapid growth of the network is also indicated by the number of explorers (more than 10 explorers provide data on Polkadot) and the wallets (27) that are increasingly supporting Polkadot.
The network has just over 50,000 active accounts that have made 400,000 transactions. The average blocking time is approximately six seconds. The average transactions processed every day is around 3,0003,500.
The network is growing pretty fast and integrates 5001,500 new accounts every day.
Below we present five projects that are most popular with Polkadot in these (still) early days.
Kylin Network, a data infrastructure component from Polkadot, is designed as a data infrastructure for the future of DeFi and Web 3.0. It is supported by Polkadot and hopes to provide validated data feed, data exchange and analysis tools for the future of DeFi and Web 3.0 applications.
It represents an extensibility and a synergetic increase in the skills of employees outside the chain, as it not only provides access, management, insights and coordination to a larger number of data sources, but also strengthens the validity and decentralization of the data sources themselves.
On October 29th the project was official admitted was added to the list of Web3 grants in full force with the first PoC product expected to launch in Q4 2020. Also, the completion of the Seed Round funding was announced in November, with USD 1.1 million raised from large institutional investors such as Digital Strategies, SigNum Capital, PNYX Ventures, AU21 Capital, Moonrock Capital, CMS, ZMT Capital, Tenzor Capital and Rarestone Capital.
Kylin Network has set itself the goal of building a cross-chain platform that powers the data economy on Polkadot. The aim is to become the data infrastructure for DeFi and Web 3.0 applications on Polkadot and to provide them with secure, reliable and inexpensive data sources and analysis services.
The paid network
The PAID network has joined PolkaDot Multi-Chain, so everyone in any blockchain can benefit from their DeFi legal system, which is summarized in one smart contract. Business disputes and litigation slow business growth and tie court systems together. Small businesses alone spend an average of $ 20,000 annually on litigation.
Smart contracts issued in the blockchain digital ledger make it easier to complete business transactions, but businesses still face a wide variety of legal risks. To minimize these risks, PAID has developed a free smart contract to make doing business easy, secure and inexpensive.
PAID’s digital legal services are easily accessible via mobile apps or the internet. Select the SMART Agreement template that meets your legal requirements, fill in the terms and conditions, and execute the contract. It’s that easy to make sure your contract is legally secure.
In the event of a dispute, PAID offers arbitration services through another PolkaDot member, Chainlink. Chainlink offers arbitration via the Chainlink Verifiable Random Function (VRF), an unbiased and verifiable arbitration process. In dispute resolution, the arbitrators are selected at random.
In the event of a dispute, the parties will have access to community-regulated arbitration.
Another PolkaDot parachute, the Plasm Network, offers middle-layer protocols to support DeFi protocols. PAID will use Plasm to expand its DeFi services. This currently includes insurance, deployment, and peer-to-peer reputation assessments.
Kusama is the rebel parachute on Polkadot. Kusama builds on Polkadot code to provide next-generation functionality not available in Polkadot, including improvements to interoperability and scalability.
Since its launch in 2019, Kusama’s token has shot into the top 50 CoinMarketCap. Its founder Gavin Woods Co-founder of Ethereum, PolkaDot and Parity Technologies gave the project a huge boost with his experience as a blockchain developer and Creds. The blockchain development platform is designed to ensure that the blockchains connected to the Polkadot parachute chain are high performing. Kusama is based on the blockchain construction kit from Parity Technologies.
Polkadot was called the Internet of Blockchains. The benefits of a digital highway based on advanced digital ledger technology have quickly drawn hundreds of parachutes into the Polkadot multiple chain. China’s Blockchain Network Service (BNS) recently added the Polkadot Multi-Chain.
The use cases mentioned above provide an insight into the many ways in which Parachains extend functions and improved products and services through provision in other Parachains. If you want to track the future of business and society on the blockchain, keep an eye on the Polkadot ecosystem.
Ocean Protocol breaks down corporate data silos to host and support curated big data marketplaces. The more data sources Ocean can use, the higher its data value. As a parachute, Ocean has the potential to access data from the 300+ parachutes currently operating on Pokadot.
On the parachute of Ocean, decentralized data marketplaces have been set up to buy and sell the curated data. Organizations are hungry for quality data to feed into their artificial intelligence and machine learning systems. Polkadot has many blockchains that companies and other data generators host. The more Blockchain Ocean Protocol data can extract, the higher the data quality and value for businesses.
Polkadot has the scalability needed to capture and curate big data. Digital Ledger Technology (DLT) can collect data anonymously in a transparent and secure environment.
This allows data providers to share their data while maintaining control over it. In addition to data providers and consumers, network operators earn fees for the Ocean Protocol by running nodes within the network.
AAVE is a credit protocol for Polkadot. The popular DeFi DApp uses Chainlink to aggregate out-of-chain price data into lending rates. By using the decentralized Oracle network, AAVE avoids one point of error for its pricing data. Chainlink brings reliability and data integrity.
Depositors provide liquidity to credit pools in exchange for aTokens. aTokens earn interest on the deposits. Borrowers can get secured and unsecured loans from the pools. The loan interest is weight-adjusted based on the oracle feed rates. This trustworthy approach ensures fairer pricing. The ability of the Polkadot protocol to execute transactions in parallelFor example, the pricing of credit, the deposit of collateral and the deposit of the credit makes flash loans possible.
Nikolaos Kostopoulos is an established fintech consultant with a focus on capital markets and asset tokenization. Nikolaos has been a pioneer in the consensus industry since early 2015. He is an early adopter and avid evangelist of distributed technology to improve many aspects of the modern world. His master’s thesis “Development of an optimal financial and regulatory mechanism for crypto currencies in the European Union” was one of the first scientific papers in which the necessity and method of regulating crypto currencies in the European Union was discussed. Nikolaos speaks often at financial events related to regulation and safety.
Featured image: Shutterstock / Captain Wang