Polkadot could introduce ‘common good’ parachains with DOT-based smart contracts

As Polkadot (DOT) gets ready to launch parachain auctions, a combined fundraising and market interest discovery mechanism, the team is realizing that some core features may be ill-suited for the auction mechanism.

Polkadot parachains are somewhat analogous to the sharding proposal for Ethereum 2.0. Each parachain is a largely independent blockchain built for a particular purpose. Many projects building on Polkadot, like Moonbeam, Equilibrium or Acala, are developing their own parachains where the project’s tokens would act as a native currency used to pay for transactions. The parachains are able to communicate with each other through the Relay Chain, a central coordinator where Polkadot’s staking-based consensus mechanism is executed.

The different parachain projects may sometimes overlap in their purpose and potentially compete with each other. For example, Equilibrium and Acala are set up as Polkadot-native DeFi chains  while Moonbeam is focusing on offering virtually the same blockchain environment as Ethereum, with a focus on DeFi as well. Certain features like bridges to external blockchains may be useful to all projects on Polkadot, but each individual parachainTitle: Polkadot could introduce ‘common good’ parachains with DOT-based smart contracts
Sourced From: cointelegraph.com/news/polkadot-could-introduce-common-good-parachains-with-dot-based-smart-contracts
Published Date: Thu, 25 Feb 2021 12:43:06 +0000