Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
Both Kusama and Polkadot share a lot in common. In fact, Kusama features a lot of the same code as Polkadot, with the same architecture, which is a multichain, heterogeneously-sharded structure that works on a Proof of Stake model, rather than Ethereum’s Proof of Work. This means that projects and apps built with these two architectures bring faster execution times, due to their multi-chain approach and for the end-user, perhaps just as importantly, the ability to take advantage of much more realistic transaction fees.
While Kusama is excellent as an experimentation zone for new technologies, startups, and codes, with a low barrier to entry, Polkadot focuses more on the enterprise and B2B stream, due to its higher stability and security features.
Both of these networks offer teams the ability to develop on them by owning a parachain. Developers would have to go through Parachain Slot Auctions for the community of both networks, which means the holders of the native tokens KUS and DOT respectively. This is a way for developers that want to leverage the utility of these protocols to raise funds, without needing ICOs, which comes with its own benefits for the investors including the foresight of not investing in frauds.
Here we look at 3 of the most notable examples of projects that have used the Parachain Slot Auctions to launch their projects:
Moonbeam, which is based on Polkadot, offers both compatibility and interoperability for blockchain applications with Ethereum, effectively bridging Ethereum to Polkadot, by using smart contracts. Its goal is to work towards Web3, a way for apps and users to use the web without compromising or monetizing their personal data. It focuses on the element of interoperability across the entire crypto realm. It offers implementation with the Ethereum Virtual Machine, an API which makes projects Web3 compatible as well as bridges that connect Moonbeam to Ethereum chains.
Developers can use the tools they already use for Ethereum including MetaMask, Remix, Hardhat, and Truffle and they can use existing code, which works right away. Moonbeam is planning to have its own utility token, although now they are strictly focusing on multi-chain interoperability, which gives users access to a huge range of tokens across the entire Polkadot ecosystem.
Power to the people and a return of data privacy, that is the good fight that Kilt Protocol is fighting. This protocol provides a democratic and trustless way for the user to reclaim power over their data and indeed to protect their private data. They offer users certificates, rather than them having to register for products and services using login data, such as emails, passwords, and personal information.
This data is normally penetrable by the companies the users register to, as it is stored on the companies’ servers, making this a rich target for hackers. This also makes the organizations who store this data more powerful, able to sell it on or use it for advertising purposes. With Kilt, there are two parties involved, the first is the Attester, who is a trusted member of the Kilt community. They will verify the user’s details and give the user known as the Claimer, a certificate which corresponds to a hash value on the blockchain. Attesters may remove this certificate at any time if they feel the user has breached trust. This hash value is hidden and secure, meaning that it is impossible to try to hack the blockchain to get hold of the data, with the added bonus of disabusing the monopolies from accessing private user data. The Claimer can present the certificate to any services they wish to register to, allowing them to keep their own data private.
Trusted entities and organizations can also take part in this solution which is striving towards interoperability across the entire realm of crypto, as well as providing an alternative to registration processes, in readiness for Web3.
Acala Network is a hub for decentralized finance, offering users the ability to stake, swap, borrow, lend, and earn with arguably the greatest benefit of all, micro gas fees to be paid in any token the user wishes. The network which is compatible with Ethereum uses its own platform for transactions, which is what keeps transactions extraordinarily low in cost and fast when compared to transaction speeds on Ethereum. Further, all smart contracts and apps which are based on Ethereum can be deployed on the Acala Network, which opens up a wide selection of leading crypto assets to the user. Acala, which is based on Polkadot, is taking part in the Parachain Slot Auctions, with many experts forecasting a successful outcome, on the back of this revolutionary network, which is stable, secure, and feature rich.
Acala’s native token, the Acala dollar, is pegged against the USD, which makes it stable. Holders of this currency become members of the Acala community, which furnishes them with governing and voting rights, to determine the future path of this project.
Crowdloaning these projects and others on both Kusama and Polkadot, provides a way for investors to gain exposure to solid new projects, not available for those outside of their communities. Crowdloaning is safe and secure via Parachain Slot Auctions, especially when compared to ICOs.