Moonbeam is a platform designed to work with smart contracts. It allows you to convert projects that were originally developed based on the Ethereum network to a more universal format. The network has yet to roll out within the Polkadot ecosystem, but it is already one of the most anticipated rollouts in the parachain segment.
The idea
Moonbeam's main mission is to remove limitations in the operation of applications using smart contracts. To this end, the project has tools that allow the formation of a multi-chain: the combination of multiple blockchains with the function of smart contracts.
Moonbeam is Ethereum-compatible and will run on its own slot in Polkadot's decentralized ecosystem. The company is now participating in an auction, which has not ended yet. And the chances of this project getting a parachain slot are very high.
Moonbeam created a buzz among users and services by solving one of the main problems of decentralized applications: the complex concept of scalability of Ethereum.
What does it mean
- The enormous size of the blockchain;
- The high commissions;
- The lack of interoperability, i.e., limiting operation to one system.
Developers building their projects based on Ethereum have to adapt the code to make it work on other blockchains.
The Moonbeam parachain removes such restrictions for all projects that use the Smart Contract feature. This result is achieved by combining a number of special tools.
By using the Moonbeam platform, developers get the following benefits: Minimal changes to the configuration of the smart contract. No need to rewrite or reconfigure it.
The ability to use convenient and familiar tools. Moonbeam parachain supports working with the services and software that are already used in the applications based on Ethereum or interacting with this blockchain. For example, Waffle, Truffle, MetaMask, Remix, and Hardhat.
Familiar languages for creating smart contracts. This includes anything driven by Ethereum virtual machine code (EVM bytecode). Moonbeam also supports Vyper and Solidity code.
Ready-made integrations. In the parachain, it is possible to integrate assets such as ERC-20, DOT as well as infrastructure services such as The Graph (a protocol for indexing network requests) and ChainLink (a network of oracles).
Extending basic Ethereum capabilities. With Moonbeam, stacking, cross-chain integration, and blockchain management are possible.
As a result, developers have the ability to seamlessly transfer applications built on the Ethereum blockchain to Polkadot.
At the same time, the Moonbeam parachain functionality allows you to make the necessary changes to decentralized services and platforms or leave their original versions as they are. The applications themselves will work without any changes.
Working with Kusama and Polkadot
The Polkadot decentralized ecosystem allows applications to run on different blockchains. Different networks can be connected to it and created for the most convenient and efficient deployment of certain projects. There are parachains that provide Polkadot with DeFi services.
The Moonbeam network is designed to be used in a decentralized ecosystem of applications based on Ethereum smart contracts. The main advantage of such a partnership is that you get access to all the features of Polkadot without having to change the code written in Solidity.
Projects deployed in the ecosystem become compatible with other blockchains. At the same time, their security is guaranteed by Polkadot tools. The number of slots is limited, so the best projects will be selected by voting. The developers whose service receives the most tokens from network users win.
The decentralized ecosystem for parachains has an experimental development environment called Kusama. It allows you to test applications and blockchains in the real world. With a successful test launch on Kusama, the authors of the project have the opportunity to participate in the auction to get a slot to deploy the code in Polkadot.
To facilitate testing of applications based on Ethereum smart contracts, a Moonbeam partner network called Moonriver has been created. As a result, developers using the Solidity language have the ability to work on Kusama and Polkadot without restrictions.
The key value of such interaction provides these benefits:
- Effective scaling of Ethereum. Projects based on ETH blockchain can interact with other networks.
- Lower transaction costs. The fees on Polkadot are significantly lower than on Ethereum.
- Other Polkadot projects get access to the smart contract feature.
- Since you have to pay a commission to use the system, the Moonbeam project has introduced its own token called Glimmer (GLMR). The Moonriver network uses MOVR.
Glimmer is a utility token suitable for the following tasks:
- Gas metering during the execution of a smart contract.
- Decentralized management of the work and development of the platform. Users holding the GLMR token can participate in voting on various issues, including casting their votes in referendums and elections of council members.
- Stimulating the work of network participants. Users can receive tokens for completing required tasks.
- Paying commissions for transactions on the Moonbeam network.
The total number of tokens is limited to 1 billion.
MOVR is used in the same way as GLMR, only within the Moonriver network - voting, paying commissions, paying rewards, etc. The maximum number of tokens is limited to 10 million.
The Moonriver platform
Various applications on Ethereum are built using the Solidity programming language. It is well suited for developing self-executing smart contracts.
With the help of Moonriver (as in Moon River), you can test the created smart contracts on the Kusama network. Developers get the opportunity to test how applications and smart contracts work in real-world conditions.
The working mechanism is simple:
1. First, the code written in Solidity is loaded into Moonriver.
2. Then it is going thru quality control and testing.
3. If no vulnerabilities are found, the application is transferred to Moonbeam.
Another feature of the platform is the ability to deploy DeFi applications.
In general, the Moonriver network is ready to serve as an ecosystem for combining projects of different types, powered by smart contracts.
The advantages of this platform include the following features:
- Rapid development. The developers often make the necessary changes by updating the Moonriver network code.
- Built-in compatibility with popular Ethereum wallets. The platform also supports various integrations and in-demand developer tools.
- Implementation of your own projects and use cases.
- No need to change your accounts, addresses, and signatures.
Since the Moonriver network provides quality solutions for scaling blockchain applications, a large number of large projects are already collaborating with it.
Crowdloans at Polkadot
The Moonbeam network is not yet deployed in a decentralized ecosystem and needs support from users. You can vote using tokens. Still, even now users have the opportunity to donate their tokens to support the Moonbeam project.
KSM is used to increase positions in the selection of Kusama slots. And in Polkadot auctions, you need to deposit DOT. After depositing tokens, the system blocks them for 48 days. If the project to which crypto funds were deposited wins, the tokens are returned.
The official start date for the auctions for receiving parachain slots in Polkadot is November 11, but the acceptance of tokens to the project’s crowdloans became available on the 4th. To deposit coins in favor of Moonbeam, you need to go to a specific page of the platform.
Smart contracts become the obvious choice for safe and fast transactions. That is why developers continue to actively create applications using smart contracts. These factors are adding popularity to the Moonbeam project.
Perhaps this platform will not get first place in the auction, since it has strong competitors - Karura, Shiden, etc. But the chances of getting allocated the second or third slot of the Polkadot parachain are very high.
The fact that the ChainLink network of oracles has been integrated into this platform is also an advantage. It is the most popular and secure set of tools for creating universal smart contracts. The oracle network allows you to combine data from different sources in one contract. By using ChainLink, developers are no longer limited to one blockchain at the level of smart contract creation.
The network is operated by a large community of users. That is, the effect of decentralization remains, which ensures a high level of security.
Integration with ChainLink makes Moonbeam a project with one of the best feature sets in its segment. It provides developers with the ability to build smart contract apps in Polkadot with any market data source connected.
Blockchain programmers and various services have already appraised the idea of Moonriver. This is confirmed by the results of the Kusama auctions.
In terms of the total amount of funds raised, the test network of the Moonbeam parachain took 5th place.
Users donated 205 thousand KSM in support of the "Moon River". As a result, Moonriver turned out to be one of the most profitable projects launched on Kusama.
Many expect Moonbeam to replicate the success of its testnet in terms of ROI. There will definitely be a reason for the growth in the value of GLMR after receiving the parachain slot. And Moonbeam is highly likely to be among the top Polkadot projects. But the final change in GLMR rate in percentage terms may not be as high as in the case of MOVR.
The Moonriver network was the first full-fledged test environment for smart contract applications powered by Ethereum. Due to its novelty, the project was able to quickly attract significant investments.
At the moment, the market capitalization of MOVR has reached $ 902.2 million. The daily trading volume is $151.7 million. Due to the rapid rise in popularity, the demand for the token has grown significantly. At the same time, the circulating volume is limited to $2,185,399. All these factors contribute to increasing the price.
Moonbeam will not introduce something completely new. At the same time, 100 million GLMR tokens will be immediately released. That is, the starting offer will be 10 times more than the maximum for MOVR. Also, the project does not have incentive programs.
As a result, there will be growth, although possibly more moderate than in the case of Moonriver. But worrying about whether the investment will pay off is counterproductive because now the project is in 2nd place in terms of the volume of tokens in the list of Polkadot crowdloans. The difference can only be in terms of the dynamics of growth.
Keep in mind that Moonriver immediately releases only 30% of the total supply. The remaining 70% of tokens will be issued within 2 years.
Development Prospects
At the moment, the Moonbeam and Moonriver partner networks are among the best solutions for scaling the Ethereum blockchain. They provide a good set of tools for testing the code and fully deploying it.
Also, these parachains neutralize the limitations in the work of any applications based on smart contracts. Plus, Solidity developers can quickly migrate their projects to Kusama and Polkadot without changing their code.
This functionality, combined with the constant updating of the network, allows Moonbeam and Moonriver to successfully compete with other similar projects.
The cost of the MOVR token is already at $427 per coin and continues to grow.
As for Moonbeam, after being deployed in a decentralized ecosystem, the project will get new growth dynamics not only a test environment will become available to developers, but also a platform for the full-fledged launch of ready-made applications.
Moonbeam already has many partners who are using this network's functionality to deploy code.
Moonbeam's selection of tools and versatility against the backdrop of Polkadot's security and popularity allows this decentralized platform to attract new large-scale blockchain projects as well as users involved in the development of blockchain applications.
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