Although Polkadot (DOT) didn’t start until 2020, the ecosystem is already growing rapidly — which projects are the most promising?
Hundreds of crypto projects have started development on Polkadot in the past few months. Each of these projects has different use cases, and just like Ethereum (ETH), it mostly revolves around decentralized finance (Defi) and non-fungible tokens (NFT). Below, we take a look at some of the most hotly debated projects in the DOT ecosystem.
Akropolis is an autonomous and decentralized project that aims to map an innovative cross-blockchain Defi platform that enables innovation. For example, developers should be able to set up decentralized applications (dApps) for investments, loans, pensions, and savings plans on Akropolis.
In addition, the Polkadot project aims to be one of the first protocols in the Defi sector to enable the granting and raising of undercollateralized loans. That could mean a revolution in the Defi sector. Currently, most of the decentralized loans that can be taken out on Ethereum applications such as Maker (MKR) or Aave (AAVE) are overcollateralized. That means: The amount of the reserves stored in a smart contract must be significantly higher than the loan taken out.
Through various incentives and the Acropolis-Sparta Protocol, the DOT project aims to reward users for their risk when they provide unsecured loans with liquidity. At the moment, however, the project is still in an early development phase and has a comparatively low market capitalization of 154 million US dollars.
Edgeware describes itself as a “self-improving smart contract blockchain.” The project is based on Polkadot and uses WebAssembly (Wasm) to continuously upgrade its self-improving functions. This is exactly what distinguishes EDG from many other crypto projects. Although blockchain technology brings with it a massive revolution, there are still obstacles, especially when it comes to connecting to core technologies.
Wasm is an example of how traditional technologies can be scaled and connected to blockchain-based, decentralized platforms. This is why Edgeware uses Wasm, for example, to increase the transaction throughput of its products. Another major benefit of WebAssembly is that developers don’t have to write platform-specific code. Instead, they encode in a language they are familiar with and that is converted to Wasm bytecode.
Edgeware is also entirely community-run. Only active members will receive rewards for staking and participating in EDG. With its innovative approaches, Edgeware could transform into an interoperable platform for decentralized applications in the future.
Centrifuge is a Polkadot project from Berlin that enables the use of real assets in DeFi applications. In cooperation with Maker DAO, Circle, the Centrifuge team wants to implement these projects. In the future, it should then be possible to borrow and lend real assets via the blockchain. This would also make it possible, for example, to take out loans with bills, mortgages, and other tokenized assets as collateral.
The DOT project has two main components: Centrifuge Chain and Tinlake. Centrifuge Chain is a blockchain built on top of Polkadot that uses a Proof-of-Stake Consensus (PoS) process. The native token of this chain is CFG from March 22nd. The token is used to perform on-chain governance and transactions on the Centrifuge blockchain.
Tinlake is a decentralized application (dApp) built on top of Ethereum that allows users to create and manage custom asset pools. Centrifuge users can convert real assets into non-fungible tokens (NFT) that can be used within the Tinlake dApp and exchanged for stable assets. In addition, according to a blog post, Centrifuge plans to launch its own Parachain on Polkadot soon. If you want to find out more about Centrifuge.
Polkastarter is a fundraising platform that enables projects across blockchain to raise capital in the crypto world. The POLS token is at the center of the platform. It enables owners to get early access to pre-sale events for new projects. That makes it easy to get involved in a project before it reaches the masses.
Non-POLS holders can also take part in Polkastarter token launches. In contrast to POLS holders, however, a much smaller proportion of the tokens are offered to them for sale.
Kusama is seen by many as a test net of Polkadot only. However, this designation does not do justice to KSM. Kusama has an almost identical code base as Polkadot, but certain properties of the two networks are very different.
Polkadot and Kusama are therefore rather two independent blockchains that have set themselves different goals. Polkadot’s slower and more methodical governance approach, which ensures stability and security, is particularly suitable for high-quality, low-risk projects — such as DeFi projects. Kusama, on the other hand, can be used for riskier small and medium-sized projects due to its lower economic and technical barriers to entry. In addition, however, Kusama also plays a crucial role in reviewing Polkadot projects.
Because of this, KSM is aimed at a wide range of developers who want to create innovative and future-oriented blockchain projects. For example, you can design both public and private blockchains, smart contracts and high-throughput chains on Kusama.
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