Polkadot (DOT) has positively surprised the cryptocurrency market with its unique, so far, parachain solution, which according to analyst Sales Wallet could prove to be an absolute goldmine.
The expert points out that Polkadot was founded by the co-founder of Ethereum, Dr. Gavin Wood, with the aim of providing the most sophisticated platform in terms of security, innovation and scalability and fulfilling the promises “that the big dog Ethereum simply could not keep.” “.
“Given that Dr. Wood is the former CTO of the Ethereum Foundation, it should come as no surprise that the DOT ecosystem design shares a multitude of similarities with the upcoming ETH 2.0,” he notes.
It also highlights that Parachains, in Polkadot, are a set of several layer 1 blockchains that work in parallel within the Polkadot ecosystem on the Polkadot and Kusama networks.
“Parachains are connected and protected by the core relay chain and share and benefit from Polkadot’s interoperability, governance, and scalability features.”
In addition, it highlights that the network’s cross-chain composition capacity allows for the efficient transfer of any type of asset or data between parachains through a system called cross-chain message passing or XCMP.
Subsequently, this opens up a host of new use cases and potential applications in DeFi, GameFi, Metaverse, NFTs, and more.
5 projects in Polkadot that could ‘explode’ in valuation by 2022
Due to these unique factors, which are currently only built on Polkadot, the analyst believes that the projects developed on the DOT blockchain have great potential not only for valuation but also for the transformation of the crypto-asset industry.
The first project on the list of experts is Acala Network (ACA), which was founded in 2019 by Bryan Chen, Bette Chen, Fuyao Jiang, and Ruitao Su. He notes that the team has previous Polkadot experience, having helped develop mobile wallets, such as Polkawallet, and contributed extensively to the development of the Substrate ecosystem.
“Acala is considered to be Polkadot’s best decentralized finance network and liquidity hub. From a technical point of view, Acala is a layer 1 parachain smart contract platform with high scalability, Ethereum compatibility and DeFi optimization. It also has integrated liquidity and an advanced suite of modular financial applications out of the box,” he said.
He notes that with the Acala platform, users can access features such as DOT-based assets and derivatives, a Polkadot-native decentralized stablecoin, liquid staking options for DOT (LDOT), as well as support for Ethereum’s EVM virtual machine.
Thus, he says, this allows developers to access the best features of Ethereum while taking advantage of substrate-powered blockchain infrastructures.
“What I find particularly interesting about Acala is that once it’s fully operational, it will bring tremendous value and utility to the Polkadot ecosystem,” he said.
Moonbeam (GLMR)
Secondly, the analyst points to Moonbeam (GLMR) which was founded in January 2020 by the Moonbeam Flight Crew, which defines itself as “A global team of creators, thinkers and doers”. It is led by pure-play CEO Derek Yoo and CEO Stefan Melhorn.
He notes that Moonbeam’s mantra echoes what many blockchain developers have long known, which is that the future is inherently multi-chain.
“Interoperability is a key issue, about which I am becoming increasingly optimistic lately. We will only be able to exploit the full potential of cryptocurrencies if disparate networks can communicate,” he stressed.
Right now Moonbeam is a parachain that brings smart contract solutions and interoperability with Ethereum to the Polkadot ecosystem. This essentially enriches the design of its core Layer 0 architecture by leveraging native Ethereum features such as on-chain governance, staking, and cross-chain integrations.
“This means that Moonbeam allows users to take advantage of Polkadot’s unique speed and bridging properties, while implementing the full set of qualities that EVM support offers,” he said.
Therefore, he said, this will enable greater Web3 access and ease of use when deploying Solidity smart contracts and dApps originally built on Ethereum.
“Moonbeam relies on its native utility token Glimmer (GLMR) for its operations and is essential to parachain design as it powers its smart contracts, facilitates network security, and enables dApp performance.”
He points out that, in November of last year, Moonbeam was the second project to get its skydiver spot, after raising more than 35 million DOT from more than 200,000 contributors. This set a new precedent for all upcoming PLOs due to the incredible support from the community.
“Furthermore, once its core network launches, Moonbeam will likely work closely with other DeFi and interoperability platforms, such as Clover, to act as a middle layer between the various Layer 1 parachains,” he noted.
Clover Finance (CLV)
Third on the expert’s list is Clover Finance (CLV), which was co-founded by Viven Kirby, Norelle Ng, and Burak Keceli in May 2020. From a technical standpoint, Clover is a Polkadot parachain based on the substrate you are looking for. provide an intuitive blockchain infrastructure to reduce developer efforts and costs in decentralized finance.
“Clover’s native utility token is CLV, a multipurpose asset that acts as both a protocol ruler and a utility token. Users can stake their CLV tokens to validate transactions on the network’s validator infrastructure, request that their projects be funded by the treasury, nominate node validators, and deploy dApps and smart contracts on Clover,” he said.
On December 16, 2021, Clover won the fifth parachain auction on Polkadot, raising over 9.7 million DOT tokens from over 11,000 subscribers. CLV is already listed on the open market and made its initial offering on Coinlist in April last year. They were sold at a price of $0.20 per token.
“CLV is currently trading at more than 3x the ICO price, and those who contributed to Clover’s slot auction are expected to receive 28% of the CLV tokens they are entitled to very soon. In addition, contributors who bet DOT on CLV will also be entered into a drawing to win a Clover NFT containing potentially over 40 million CLV tokens. It would be a nice gift to open,” he said.
Efinity (EFI)
Ultimately, he points to Efinity, which is a Polkadot parachain that aspires to be the next generation blockchain for NFTs, with minimal fees and rewards for ENJ holders.
While Ethereum NFTs are based on the ERC721 token standard, Efinity leverages a new NFT infrastructure design called the ERC1155 token standard, which allows developers to generate non-fungible and fungible tokens within the same contract. This reduces GAS costs and increases developer flexibility.
Enjin is also building a Paratoken, which will be compatible with ERC1155 tokens developed for Ethereum.
“Efinity was designed by Enjin in conjunction with the Web 3 Foundation to be a cross-chain NFT blockchain that enables ecosystem interoperability, incentives for people to engage with NFTs, and a consistent user experience,” he noted.
It further notes that Efinity’s parachain capabilities will therefore allow other parachains to incorporate Efinity’s NFTs into their respective ecosystems and leverage its native cross-chain capabilities in gaming, DeFi, other NFT projects, and even smart contract applications. .
Centrifugal (CFG)
To finalize the list, the expert points to Centrifuge (CFG), a paratrooper project that has not yet found its place within the Polkadot ecosystem. Centrifuge is a DeFi lending protocol that aims to make credit more accessible to small businesses.
It will also provide a stable return to investors by opening up the combined liquidity for traditional finance and real-world assets. Centrifuge was co-founded by a team led by CEO Lucas Vogelsang and has raised nearly $12 million from major investors including the likes of Galaxy Digital and IOSG Ventures.
“Centrifuge’s partner decentralized app, called Tinlake, is a marketplace for real-world tokenized assets. By minting NFTs to represent these real-world verified tokenized assets, Centrifuge enables businesses to pool assets to use as collateral for their loans and quickly access liquid capital provided by individual investors. This essentially means that users can take a real-world asset, like a house or other real estate, for example, tokenize it as an NFT, and use that NFT only as collateral.” stands out.
Furthermore, he notes that Centrifuge is built on top of Parity Substrate and thus can interface seamlessly with Polkadot, as it effectively becomes a parachain that benefits from Polkadot’s relay chain security and consensus protocols.
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