Altcoin Roundup: Interoperability push brings focus back to Polkadot

The Polkadot ecosystem significantly underperformed other Layer 1 networks in 2021, while the slow rollout of parachain auctions and mainnet launches left the network catching up in 2021.

This trend seems to have come to an end in mid-March when many projects in the Polkadot ecosystem saw their prices increase after users started engaging with networks that expanded their offerings and pushed towards the Ethereum Virtual Machine (EVM) compatibility.

Here is an overview of the top six mobile protocols in the Polkadot ecosystem that help establish a presence in the cryptocurrency market.

Interoperability is key

Interoperability has been one of the driving themes of the cryptocurrency market over the past year, and Moonbeam (GMLR) and Astar (ASTR) are two Polkadot parachains focused on multi-chain compatibility with other Ethereum networks. .

Moonbeam is a smart contract parachain aimed at making it easier to use Ethereum developer tools to create or redeploy Solidity projects in Polkadot’s substrate-based environment.

It was the first parachain to go live on the Polkadot mainnet and plans to bring on-chain governance, staking, and cross-chain integration to the base Ethereum feature set.

Astar is a decentralized application (DApp) hub that supports a variety of standards including Ethereum, WebAssembly (WASM), and Layer 2 solutions such as zk-Rollups. The goal of the protocol is to become a multi-chain smart contract platform capable of supporting multiple blockchain networks and virtual machines.

Since its launch in late January, the Astar network has seen the total value locked on the protocol peak at $1.47 billion, and the metric currently sits at $1.31 billion, according to data from DefiLlama.

Moonbeam and Astar provide an important service to the Polkadot ecosystem because the Polkadot relay chain does not support smart contracts.

Polkadot’s DeFi ecosystem is still in its infancy

The decentralized finance (DeFi) ecosystem on Polkadot has started to gain traction, thanks to new developments from Acala and Centrifuge.

Acala played an important role in Polkadot’s DeFi ecosystem by bringing its first native stablecoin – aUSD – to the network.

Stablecoins have become a fundamental part of the underlying DeFi infrastructure and the addition of aUSD brings a decentralized stablecoin to market that is backed by Polkadot (DOT), DOT derivatives, and possibly assets. cross-chain like Bitcoin (BTC) or Ether (ETH).

Along with Acala and aUSD, the Polkadot ecosystem has now joined Terra, Frax Share, and Curve Finance in the ongoing “stable wars” that have become a dominant theme in the evolution of DeFi.

Centrifuge is a decentralized asset finance protocol designed to connect the real world with DeFi through the tokenization of assets such as invoices, real estate, and royalties.

The main goals of the protocol are to help users generate profits that are not tied to cryptocurrency assets, reduce the cost of capital for small and medium businesses, and provide investors with a stable source of income.

With Centrifuge, businesses can use real tokenized assets as collateral to access funding on the DApp Tinlake Lending Protocol.

Acala, nine parachain teams and a group of venture capital funds launched the $250 million ‘aUSD Ecosystem Fund’️

The fund seeks early-stage projects of any @Peas or @KusamaNetwork parachain with box $aUSD stablecoin use case https://t.co/OJ2V47ZUry pic.twitter.com/NDgLg2bG8N

— Acala (@AcalaNetwork) March 23, 2022

Acala and Centrifuge are participating in the $250 million “aUSD Ecosystem Fund” which was launched on March 23, shortly before the Polkadot ecosystem began to rise.

Web3 Pivot Catalyzes Growth

Web3 is another buzzword in the crypto ecosystem, and the term is really just a fancy term for integrating blockchain technology into the internet.

Saito and Kylin are two protocols in the Polkadot ecosystem that aim to facilitate the evolution of Web3 through scalability and data management.

Saito is a blockchain network designed to process terabytes of data by paying rewards to peer-to-peer (P2P) network nodes, instead of using miners or staking, as a method of providing a network without permission and scalable.

This functionality is needed to one day power decentralized versions of popular sites that currently hold the Web2 monopoly, such as Twitter, Facebook, and Amazon.

When it comes to data management in the Polkadot ecosystem, Kylin has led the charge by providing a decentralized data infrastructure solution known as DeData for Web3. The Kylin ecosystem consists of a data oracle, data analytics, and a data marketplace.

Kylin Data Analytics is a set of tools designed for data warehouses that extract meaningful results, patterns, and interpretation from data, while implementing low-cost go-to-market functionality for the public.

The Kylin data oracle is an advanced decentralized data feed protocol capable of processing any type of on-chain and off-chain data in a validated manner.

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