It has been almost 4 months since Polkadot’s first slot auction, and at the end of last month, the Polkadot Council passed a resolution of Motion 158, arranging the parachain auction time for the rest of the year.
This means that in the next 12 months, that is, 4 LPs, with 7 auctions per LP, the top two winners in a batch can join the Polkadot network immediately, and the next five winners can join the Polkadot network immediately. The Polkadot relay chain will be connected to the next LP. At this point, we can say that the Polkadot parachain auction has also entered a stage of normalization.
Therefore, we try to observe how these parachain projects that have won the slot auction are developing, which directions are favored by ecological users, and whether the direction of their layout can be changed or bring new vitality to the Polkadot ecosystem , with this question, we started the exploration of this paper.
At the same time, we are still standing on a mature blockchain network to analyze the dismantling. What are the sectors that Polkadot needs to make up for? This may bring some thoughts to the leaders of the follow-up ecology. Of course, the blockchain’s Development is to explore and move forward. We can all become pathfinders and observers. Below, Enjoy.
The status quo of Polkadot ecology
In order to better predict the future development of the Polkadot ecosystem, we have to review the development status of the Polkadot ecosystem once again.
As a Substrate framework, Polkadot, which can issue chains with one click in fifteen minutes, undoubtedly has an unparalleled advantage in ease of use for developers. Therefore, it has also attracted many elite teams to join, creating high-quality projects like mushrooms after a spring rain, and playing an important role in the entire ecosystem.
Let’s break it down one by one.
Whether it is “the future will be multi-chain” that V God believes, or the value of “cross-chain” proposed by Dr. Gavin. In the era of Web 3.0, no public chain can be an island. Ecosystems are open and interactive. “Interconnection of ten thousand chains” is an inevitable trend in the development of the blockchain industry. So what attempts has the Polkadot ecosystem made in this regard?
Expand to a multi-chain ecosystem
When it comes to “10,000-chain interconnection”, we cannot avoid the expansion to a multi-chain ecosystem. There are many scalable DApp platform projects in the Polkadot ecosystem, such as the “Ethereum” Moonbeam of the Polkadot ecosystem, Bit.Country, a Metaverse smart contract platform, and Astar, the DApp center on the Polkadot ecosystem.
As an early technical project of the Polkadot ecosystem, Astar complements the smart contract function of the relay chain and provides interoperability to many ecosystems such as Ethereum, BSC, and Avanlanche. If Moonbeam provides the necessary conditions for applications in the Ethereum ecosystem to be replicated in the Polkadot ecosystem, then Astar provides the possibility of multiple chains and multiple virtual machines.
Before Astar won the Polkadot parachain slot lease, its pioneering network Shiden, as the third project to win the Kusama parachain slot lease, has already taken the lead in testing new features.
In the future Astar will focus on providing multilingual WASM compilation support in addition to EVM compatibility. And supports EVM and WebAssembly developers to deploy existing Solidity smart contracts as well as Polkadot’s native ink! smart contracts. Cosmos two-way bridge for blockchains such as Ethereum, Terra, Cronos, Osmosis, Oasis, etc. And connect all mainstream Layer1 public chains in 2022.
This is an important step for the expansion of the Polkadot ecosystem to a multi-chain ecosystem. The Polkadot ecosystem plays a vital role as an important part of the “10,000-chain interconnection”.
Expand into traditional areas
However, in addition to the “10,000-chain interconnection”, the development of blockchain technology is to comply with the increasing demands of users for decentralization, transparency and traceability. In addition to important fields such as DeFi and NFT, the combination of blockchain and traditional fields has also attracted widespread attention.
The Polkadot ecosystem has numerous projects expanding into traditional areas, such as Centrifuge, KILT, Acala, Equilibrium, and more. Even the Astar we mentioned above has applications that extend into the traditional realm. Here we only list some relatively simple examples to illustrate the expansion of the Polkadot ecosystem to traditional fields.
First of all, when it comes to the expansion into traditional fields, we have to mention Centrifuge. Centrifuge realizes the tokenization of real-world assets, places invoices, houses and other commodities on the blockchain, and provides loans to users. In the future, Centrifuge will use the KYC mechanism in KILT and verification of real-world Assets to realize its vision to provide access to financing for any asset.
Acala has reached a cooperation with the digital bank Current, and launched its multi-financial layout – HyFi, which combines the world of fintech and traditional banking with encryption and Web3, and stimulates the potential of more fintech industries. Currently, more than 3 million users have joined the Acala project through Current.
Astar has reached a cooperation with Microsoft Japan, and Microsoft Japan will provide extensive support in the field of marketing and infrastructure centered on “Microsoft For Startups” to jointly build the Astar Network / Shiden Network ecosystem.
The combination of blockchain technology and traditional fields is an important way for the blockchain industry to break barriers and enter thousands of households, and an indispensable means to closely integrate Web3.0 with the general public. The many attempts of the Polkadot ecosystem to expand into traditional fields have a very important role in promoting the further development and popularization of blockchain technology.
Improve its own function
At present, although the information exchange between chains can be realized through some tools or technologies, the convenient, simple and efficient cross-chain function must be the goal that many chains want to achieve, so try to improve the block as much as possible. The function of the chain itself is also very important.
Zenlink is the underlying cross-chain DEX protocol based on Polkadot, by accessing the ultimate, open and universal Zenlink DEX protocol based on Substrate.
So far, Zenlink has completed many key milestones. For example, Zenlink has completed 2 rounds of public testing, which has laid a good foundation for the launch of the mainnet; Zenlink SlotVault has been launched to help other projects better participate in Kusama slot auctions. In addition, excellent functions such as Smart Order Routing v1, Farming v2, Limit Order Beta have also been developed, which has established a good foundation for Zenlink.
In addition, funding can help projects build new features faster. For example, Interlay, a project dedicated to enhancing the interoperability of decentralized finance, is developing infrastructure for decentralized finance applications on major blockchains such as Ethereum, Cosmos and Polkadot, and the funding will help it expand its business. Scale, while also being able to attract more developers.
Currently, Interlay is also stress testing the Kintsugi bridge to become one of the best BTC bridges to launch on Kusama.
Bifrost, the Rainbow Bridge, is the basic protocol of Polkadot ecological DeFi. It is committed to becoming the infrastructure for pledged assets to provide Liquidity. It has also launched Derivatives VToken for Staking and Polkadot parachain card slots.
On February 18, Bifrost and Statemine have been successfully upgraded to two-way cross-chain, introducing BTC, ETH, USDT assets, realizing the circulation of asset liquidity, and allowing developers or communities to use Statemine to issue assets.
In terms of cross-chain functions, in addition to such great progress, Birfrost has also launched Collator to realize the decentralization of block collection. Bifrost will gain network security and stability through the operation of these large and quality-assured Collators.
develop its own ecology
Acala is a cross-chain financial center between Polkadot and Kusama, and the first winner of the Polkadot parachain slot Auction. As of February 28, the Acala ecosystem has covered 13 categories, including cross-chain bridges, FinTech, NFT, audit security, wallets and tools, and 72 dynamic projects. They will jointly build and prosper the Acala ecosystem.
In addition, on February 10, Acala launched a native decentralized stable asset – aUSD/kUSD, which can be minted using DOT and LCDOT as collateral. In the future, Polkadot and Kusama will connect more than 200 parallel chains. And there will be tens of thousands of parachains connected to it through a network of relay chains, and Acala’s decentralized stablecoin will provide native and trustless asset liquidity for all of these parachains.
In addition, Acala also plans to upgrade and merge kUSD with aUSD, which will also use aUSD on the Karura network.Therefore, the liquidity of aUSD will serve both the Polkadot and Kusama ecosystems.
The Acala team is achieving its goals in an orderly manner, and Acala is introducing a new financial paradigm, hoping to provide many solutions for the entire network through active innovation and construction.
Moonbeam, the winner of Polkadot’s second parachain slot Auction, is an Ethereum-compatible smart contract platform on the Polkadot network that makes it easy to build natively interoperable applications.
Moonbeam completed its release in January 2022, and Moonbeam and Moonriver now have over 100 projects, integrations and collaborations, providing a vibrant ecosystem for developers and end users.
On January 20th, Moonbeam announced the provision of a one-way bridge from Statemine to Moonriver, which means that Statemine-based fungible assets such as RMRK can be transferred to Moonriver through the HPMP channel, and RMRK will bring RMRK-based functionality to Moonriver.
In addition, on February 25th, Moonbeam and the cross-chain NFT game BCMHunt multiverse announced the official integration. Their cooperation has undoubtedly contributed to the vigorous development of the NFT and game ecosystem on Moonbeam.
Moombeam has gradually become the preferred space for blockchain projects such as NFTs, games, decentralized storage, DeFi, etc., with its interoperability, ease of use, and cost-effectiveness.
Astar Network is the dApp hub on Polkadot that supports Layer 2 solutions like Ethereum, WebAssembly, and ZK Rollups, and is the project that won Polkadot’s third parachain slot auction.
At present, Astar has launched the Ethereum two-way bridge supported by Multichain (AnySwap) and Celer Network, and the Cosmos<>Astar two-way cross-chain bridge compatible with Cosmos IBC will be launched in the first quarter. Second, Astar natively supports the #Build2Earn protocol to provide and distribute basic income to developers.
In addition, Astar launched an incubation program not long ago to support promising projects in the Astar/Shiden ecosystem and jointly promote the development of Web3.
Parallel is committed to bringing more liquidity to Polkadot and the Kusama network, and is also the winner of the fourth slot Auction of the Polkadot network, its goal is to actively innovate and take DeFi to a new level, creating the most secure , the easiest-to-use decentralized platform for financial services for everyone.
In February, the Parallel V2 webpage was launched, users can contribute through the Crowdloan pallet to get cDOT, in addition, users can exchange cDOT for DOT at the end of the lease period.
In terms of technical progress, Parallel has completed the development and testing of crowdloan v2 pallet, liquid-staking pallet, and product design and function development of farming pallet. At the same time, Parallel is also accelerating the release process of new products such as AMM and Money Market.
Explore cross-chain scenarios
Thanks to the rapid development of blockchain technology, the number and scale of blockchain networks are also growing, and the cross-chain function will realize the exchange of information, data, and value between chains, which is in line with the next generation. The idea of Internet Web3 is also the vision of Polkadot.
Therefore, more and more projects are joining the Polkadot network to obtain value interoperability and exchange. The following is the exploration of cross-chain scenarios by some projects in the Polkadot network.
Parachain A chain assets on Polkadot cross to parachain B chain
Zenlink’s X-Transfer can support asset cross-chain interaction between Substrate chain to Substrate chain and EVM chain to Substrate chain, and now supports RMRK’s $RMRK cross-chain from Statemine to Bifrost.
Previously, on Kusama, Bifrost and the Acala pioneer network Karura have opened up the two-way cross-chain interoperability function through XCM. It is believed that such a scenario will soon be realized between various parallel chains of Polkadot.
Assets on Polkadot/Kusama cross to parachains
Moonriver, the first network of Polkadot smart contract platform Moonbeam, has added a native cross-chain token function, which marks the introduction of a new type of interoperable token XC-20, which conforms to the ERC-20 standard but is also a native asset of Substrate, into the Kusama network. For example, KSM is distributed on Moonriver in the form of xcKSM.
Assets outside the Polkadot ecosystem cross over to Polkadot
Polkadot’s multi-layered DeFi protocol Composable announced that its cross-layer asset transfer system Mosaic will support Polkadot ecological smart contract Moonbeam as one of its connected networks. This integration will allow users to connect Moonbeam with Ethereum, Fantom, Avalanche, Arbitrum, Polygon , Moonriver, and upcoming integrations such as Optimism and Starknet to seamlessly transfer tokens.
Additionally, developers can now access Moonbeam through the Composable SDK for cross-layer transfers, exchanges, and function calls.
Astar Network/Shiden Network will be the first parachain with IBC interoperability to transfer and receive cross-chain assets between any Cosmos chain.
The Moonbeam community, a Polkadot smart contract platform, is now able to use cBridge, a layer-2 scaling platform, Celer Network, for a fast, low-cost cross-chain bridging experience between Moonbeam and 15 other supported blockchains and Layer2 networks.
Current predicaments and future expectations
Maturity of cross-chain technology
At present, although Polkadot has conducted a parachain slot auction, and each project party can also access the Polkadot relay chain, Polkadot is not complete at this time, and the most critical cross-chain technology is still lacking. . At present, due to the immaturity of XCM and the official launch of XCMP, the project parties have not been able to let go, but they are still eager to explore more cross-chain scenarios.
For example, use the temporary HRMP technology to launch some channels for some cross-chain attempts. HRMP, that is, horizontal relay routing message passing, can be regarded as a simplified version of XCMP, which has the same interface and functions as XCMP, but has higher resource requirements because it stores all messages in the relay chain storage.When XCMP was implemented, the HRMP program was deprecated and phased out in favor of XCMP.
Another example is the XC-20 format launched by Moonbeam/Moonriver, which enables cross-chain tokens to fully comply with the ERC-20 standard on the premise of maintaining Substrate’s native token. Tokens created in the XC-20 format will be able to cross other Kusama parallel chains. Other parachain tokens will also be able to be transferred to Moonriver as XC-20.
Zenlink has also launched X-Transfer, which integrates cross-chain and token transfer functions, which will provide the community with a one-stop cross-chain bridging service, which can support asset cross-chain interaction between Substrate chain to Substrate chain and EVM chain to Substrate chain. It has opened up the gap between the EVM architecture and the Substrate chain in the Polkadot ecosystem, and is currently implemented in the form of HRMP.
Everything is ready and only owed to the east wind. Polkadot is still a while away from ushering in the dividends brought by cross-chain, which is the time period that those who like the layout on the left focus on.
More scenes bring more incentives
With the improvement of cross-chain technology, more cross-chain scenarios will appear. For example, after different parachains are connected to each other, various cross-chain assets will appear, and these cross-chain assets will be combined with the native assets and derivative assets of the parachain for more DeFi combinations. The most direct one is to meet the trading needs of different assets, and these trading needs need to be supported by liquidity.
In this regard, the project side of cross-chain assets will cooperate with some application platforms that provide cross-chain functions and launch some liquidity incentive mechanisms, among which there are many liquidity rewards. For friends of Card Ecological Assets, this will be a great opportunity for welfare.
These cross-chain scenarios will provide more lock-up mechanisms in disguised form to lock up more assets for the project party, and even cross-chain DOT to the parachain as the target of DeFi, adding new features to DOT. scenes to be used.
The number of cross-chain scenarios is increasing, for example, multiple traffic routes have been added between countries, and in the case of incentives, the frequency and amount of trade will naturally rise. For Polkadot, it also means that cross-chain assets and With the increase of cross-chain activities, various parachains in the Polkadot ecosystem and some applications in the parachains will naturally develop faster because of this trend.
Access to high-quality projects outside the ecology
Polkadot’s shared security design solves one of the most difficult problems in handling cross-chain messages from the consensus level: rollback attacks. If you want to roll back a parachain, you must roll back the Polkadot main chain, and then all other parachains will be rolled back at the same time. If everyone rolls back together, there will be no data inconsistency.
With the improvement of Polkadot’s infrastructure, the cross-chain security within Polkadot will be higher than some projects that conduct cross-chain on multiple public chains. Therefore, more high-quality projects, especially DeFi projects that have more cross-chain requirements or multi-chain deployment requirements, can support EVM smart contract parachains in the Polkadot ecosystem, such as Acala, Moonbeam, Astar, etc., in the Polkadot ecosystem. Deploy your own applications on it to complete your multi-chain deployment in the Polkadot ecosystem.
Some high-quality assets, such as the well-known stable coins USDT, USDC, etc., enter the Polkadot ecosystem by generating Polkadot native assets in Statemint to provide financial support for various usage scenarios, thereby developing and expanding themselves.
The entry of these projects and funds will also give a boost to the development of the Polkadot ecology. The development of the ecology is like a flywheel effect. It is difficult at the beginning, but it will become faster and faster after the start.
Even though Polkadot has been around for almost 6 years, the complicated technology development and technical implementation have taken up almost half of the time. Even now, Polkadot is still not the final ideal, especially the XCM we mentioned above. This may be a crucial milestone in 2022.
Judging from the current development path of blockchain, cross-chain is still a topic that will exist for a long time, and it will also be the direction that technology innovators will continue to explore. Objectively speaking, we can no longer say who will become the blockchain field. The real cross-chain leader, after all, there are still variables in the story before the ending is written, but we have a high probability that Polkadot will go in the established direction and will definitely become the leader in the blockchain field.
We also know that the innovation brought by the blockchain is far from the end, it is still in the early stage of the industry, and more pathfinders and forerunners are needed to join in. Whether technical talents or adventurers, there is still a chance to become the next generation. An era of “Jobs” or “Bill Gates”.
When the grass grows and the warbler flies again, a cold winter has left us. No matter how cool it is, we will eventually usher in summer. The industry is ups and downs. Fertile soil for the fall harvest season.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/what-explorations-are-the-polkadot-ecological-projects-doing-after-the-polkadot-slot-auction/
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