polka dot plos are here and they could prove to be an absolute gold mine but how do you find that gold and which projects on polka dot have the most potential well that’s exactly what i’ll be answering today i’ll be taking you through five of the most interesting parachain projects and covering their ins and outs pros and cons as well as some of my own predictions you definitely don’t want to miss this people now i hate to be uncouth but i need to hit you with some truth financial advice is not something i do but if that’s what you’re looking for then contact a financial advisor near you also do be aware that i do in fact hold some polka dot in my personal portfolio but i will do my absolute best to be as unbiased as possible while delivering my opinions here now if crypto content is what inspires you then woohoo you’ve come to the right place my name is guy and quality crypto content is my favorite space here at the coin bureau we deliver the best crypto education straight from our studio to you coins news reviews market moves and some fun facts too i do it for the culture and for the knowledge but the views are great too if what i just said struck a chord then subscribe to the channel and ping that little old notification bell to get on board okay that’s all i’ve got so without further ado let’s dive straight into these top five projects on polka dot okay before we jump into the top five most promising power chains on polkadot a brief analysis of what a parachain actually is and how it is structured is only polite this should provide you with a deeper understanding of how polka dots architecture is natively designed and shed some light on its interoperable nature and cross chain composability features if you already know all about that then feel free to skip ahead to the next section using the timestamps in the timeline below now as many of you will know polkadot is a smart contract compatible blockchain that launched in may of 2020.
Polkadot was founded by ethereum co-founder dr gavin wood, with an objective to deliver the most sophisticated platform for security, innovation and scalability, as well as deliver on the promises that the big dog ethereum simply could not. Now, given that dr wood is the former cto of the ethereum foundation, it should come as no surprise that dot’s underlying ecosystem design shares a plethora of similarities with that of the upcoming eth 2.0. In fact, in terms of fundamental blockchain structure, polka dot, central chain and foundational layer is called the relay chain which uses a proof-of-stake consensus mechanism and because polkadot was designed to function as what is called a layer.
Zero heterogeneous multi-chain network, the relay chain in and of itself, does not natively support, smart contract functionalities, and it can only handle a handful of transaction types, namely those pertaining to staking now polkadot is able to gain its smart contract, integrations from the additional blockchains that can Plug into the foundational relay chain, this is ultimately because dot’s relay chain can provide layer, 0 security and, more importantly, scalability – for up to 100 layer 1 blockchains connected to the relay chain as parachains para chains are a set of diverse layer, 1 block chains running in Parallel within the polkadot ecosystem, on both the polkadot and kusama networks, parachains are connected to and secured by the central relay chain and they share and benefit from the interoperability, governance and scalability features of polkadot. What’S more, the network’s cross-chain composability allows for any type of asset or data to be efficiently transferred between parachains through a system called cross-chain message passing or xcmp for short. Subsequently, this opens up a trove of new potential use cases and applications in defy game fight. The metaverse nfts and so much more now, there’s a lot more to polka dot that i can’t go over here, but i will leave links in the description to some of my previous polkadot videos that i encourage you to watch at your leisure moving on, though one Of the most fascinating and deeply appealing traits of the polkadot parachains is the polkadot parachain loan offering system or plo via plos projects. Looking to secure a slot on polkadot’s network can do so by participating in what is called a parachain slot auction slot auctions involve bidding on a particular slot on either the polkadot or kusama blockchains, using real capital, in this case dot for polkadot and ksm for kusama And those projects looking to bid for a slot may do so by using their own dot or ksm assets or by leveraging a crowd loan system.
Now, whichever project is able to secure the highest amount of ksm or dot tokens at the time when the snapshot is taken, wins the slot. This process is akin to that of an initial coin, offering, however, the main difference here is the fact that crowd loan participants maintain full ownership and control over their tokens. This means that they are not actually required to trade one token set for another, as they will essentially be airdropped. The project’s native tokens for every dot or ksm contributed. Of course, this is if the project they have loaned to manages to secure a parachain slot, if not all, contributed, capital will be returned to the contributors at the end of the auction batch when it comes to participating in plos.
That’S the subject of a whole other video and thankfully, for you, it’s one i have in the top right feel free to open up a new tab so that you can come back to it later. Okay, that’s enough of an overview. I now want to look at a few polka dot projects that have secured their slots as well as some that are still bidding. I will also say that i have not invested in any of these and have no affiliation to the projects whatsoever, they’re just projects. I find interesting so with that out of the way, let’s dive in first up, we have a kala network.
It was founded in 2019 by brian, chen betty, chen fuyao, zhang and ruito su sorry, if i mangled any of those names now, the team has previous polka dot experience as they helped developed mobile wallets, such as polka wallet, and have contributed extensively to the development of The substrate ecosystem, now a carla deems itself as the ultimate decentralized finance network and liquidity hub for polkadot. Technically speaking, acala is a layer, 1 parachain, smart contract platform boasting high scalability ethereum compatibility and defy optimization. It also has built-in liquidity and an advanced set of ready-made modular financial applications with akala platform users can gain access to features such as dot based assets and derivatives, a polka dot native decentralized stablecoin, liquid, staking options for dot l dot, as well as ethereum virtual machine Evm compatibility this allows developers to gain access to the best functionalities of ethereum, while also taking advantage of substrate-powered blockchain infrastructures. Therefore, what i find particularly intriguing about akala is that once fully operational, it will look to bring some serious value and utility to the polka dot ecosystem in terms of pure structure. Akala is made up of two primary protocols.
The first is hanzon a decentralized stablecoin protocol, which makes it possible to mint a digital asset. Collateralized us dollar stablecoin called the akala dollar or ausd. The second protocol is a tokenized staking liquidity protocol called homa, which makes it possible to use a tokenized version of staked dot called l dot across d5 protocols built on polka dot. Akala has also developed a cross chain dex that will feature wrapped assets such as renbtc that can be used as collateral to mint. It’S a usd stablecoin, pretty cool.
If you ask me now, akala’s native utility token is aca and if you’ve already tried looking it up on either coin market cap or coin gecko. Well, you probably didn’t find anything. However, you will find the necessary information about aca’s tokenomics on akala’s official website. This is because polkadot’s defy hub has only just started rolling out its launch process with the team announcing the project’s mid-term roadmap on december, the 18th after two years of consistent building and protocol development. On november, the 18th akala was the first parachain to secure a slot on polkadot, with over 32 million dot, contributed by over 190 000 community members.
This momentous achievement was a testament to the strength and passion of akala’s growing community, which currently counts more than 800 000 members across global channels and over 100 ambassadors. According to its roadmap, the team at hakala anticipate that aca tokens will be distributed to all contributors within the first four weeks of genesis, with the entire one billion token supply being minted in the genesis block at launch. So if you participated in the akala plo, do keep your eyes peeled for that next up, a drum roll, please moonbeam moonbeam was founded in january 2020 by the moonbeam flight crew, which defines itself, as quote a global team of makers, thinkers and doers. It’S spearheaded by ceo derek you of pure stake and ceo, stefan melhorn now moonbeam’s mantra echoes what many blockchain developers have known for quite some time now, and that is that inherently the future is multi-chain. On top of that, it is indeed reasonable to assume that the blockchain systems of tomorrow won’t work separately like they do now.
Interoperability is a key theme which i have become increasingly bullish on recently. We can only tap the full potential of crypto if disparate networks are able to communicate. Fundamentally speaking, moonbeam is a para chain that brings smart contract solutions and interoperability with ethereum to the polka dot ecosystem. This essentially enriches its primary layer: zero architectural design by leveraging ethereum native 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 also implementing the full set of qualities offered by evm compatibility.
This will then allow for greater web 3 access and ease of use when deploying solidity, smart contracts and dapps originally built on ethereum. While there are many other protocols currently working together to provide a more interconnected and diverse blockchain environment, moonbeam tackles the issue of interoperability. By providing a framework, it includes the following features: permissionless dapps, evm collaborations, advanced apis, substrate-compatible tools, cross-chain integrations and on-chain governance. Now moonbeam depends on its native utility token glimmer glmr for its operations, and it is essential to the powerchain’s design as it powers its smart contracts, facilitates network security and enables dap performance. In november of last year, moonbeam was the second project to secure its parachain slot.
Having raised more than 35 million dot from over 200 000 contributors, this set a new precedent for all upcoming plos, due to its astonishing community support, just like with the majority of plos all contributed dot tokens will be locked for the duration of the entire lease period, Which, in the case of moonbeam, will last 96 weeks from the 17th of december last year, all contributed tokens being subsequently returned to all investors once the lease is completely finalized. Now, in a similar fashion to acala’s aca moonbeam’s glimmer tokens are not currently trading on the open market, but the primary team predicts that glmr tokens will be minted and fully released in q1 of 2022. Once the moonbeam network launches at genesis, the total supply of glimmer will be capped at 1 billion tokens, with different portions being allocated to these sectors in order to secure the network reward contributors fund, the treasury and provide protocol liquidity in terms of its future potential. Moonbeam will most likely attract a growing set of developers who want to stretch ethereum’s capabilities and bridge them with the benefits of other blockchain ecosystems, primarily polka dot. Furthermore, once its main net goes live, moonbeam will probably be working in conjunction with other d5 and interoperability platforms.
Such as clover to act as an in-between layer between the various layer, one parachains, which leads me on to the third most promising parachain project, clover finance. Now, over the course of the years, blockchain technology has given birth to an astounding amount of new projects and widespread innovation. But lately many developers have been focusing on bringing all of these decentralized networks, together with cross-chain compatibility, merging defy applications with the bitcoin blockchain d5, with nfts and ethereum, with polkadot, for instance. Thus, behold clover finance now clover was co-founded by viven kirby, narel ung and burak cacelli in may of 2020 they’re, a team of blockchain developers and deep tech, vc entrepreneurs. Technically speaking, clover is a substrate-based polkadot parachain that seeks to provide an intuitive blockchain infrastructure to reduce efforts and costs for developers in decentralized finance.
Clover builds itself as a foundational layer for cross-chain composability and as a blockchain operating system, and its protocol structure is primarily made up of four different layers. These layers are storage, smart contracts, d5 protocol e-apps. Now, clover’s storage protocol layer allows for the distributed storage of dap data. The smart contracts layer, as you might have guessed, already supports the cross chain deployment of smart contract functionalities with a web3 compatible api enabling existing web 3daps to seamlessly migrate to clover without any changes. Clover’S d5 protocol layer instead supports basic d5 applications such as swapping lending and insurance, whereas the e-app layer supports the evolution from a dap to an e-app or external application.
This allows developers to deploy their own e-apps easily on clover with no extra bandwidth, nor additional virtual machines. In addition to that, clover’s native architecture will boast full evm compatibility, which will enable protocols building on clover to benefit from having direct access to ethereum’s, advanced functionalities and developer toolkits. Now one of the most remarkable features that clover offers is its in-house two-way peg system. This is a mechanism that allows the transfer of an asset from a base chain to a secondary blockchain, and vice versa. This is done by temporarily locking an asset on one chain and unlocking the same amount of equivalent tokens on another.
Now, while the concept of a two-way peg is nothing new, it actually dates back to the early days of satoshi. This system does come with some inherent risks, especially as it pertains to user honesty and trustworthiness. Now i won’t dive too deep into how these work, but all i will say is that clover’s two-way peg system facilitates an asset transfer between two separate chains such as ethereum and polkadot. This is through its advanced merkle proof system, which ensures a decentralized and trustless asset, locking and unlocking process. Clover’S native utility token is clv a multi-use asset, acting as both the protocols, governance and utility token users can stake their clv tokens to validate transactions on the network’s validator infrastructure, apply to have their projects funded by the treasury, nominate, node, validators and deploy dapps and smart Contracts on clover on december, the 16th of 2021 clover won the fifth parachain slot auction on polkadot securing over 9.
Million dot tokens from more than 11 000 subscribers. Unlike aca and glimmer, clv is already trading on the open market and it held its initial coin, offering on coin list. In april of last year, these were sold at a price of 20 cents per token. Clv is currently trading at over 3x, its ico price and those who contributed in the clover slot auction are expected to receive 28 of the clv tokens they are entitled to very soon. In addition, contributors who staked dot for clv will also be entered into a lucky.
Draw to win a clover nft, potentially containing more than 40 million clv tokens. That would be a nice present to open next effinity in august of 2021 engine launched a new initiative called effinity. I don’t have time to go into engine here, but if you want more info i’ll leave, my previous video for you in the description, anywho effinity is a polka dot. Parachain that aspires to be the next generation blockchain for nfts, with minimal fees and rewards for enj holders. It also seeks to tackle one of the most significant barriers to the full-blown adoption of non-fungible tokens eth gas fees.
Now, while ethereum nfts are based on the erc 721 token standard effinity leverages a new nft infrastructure design called the erc 1155 token standard which lets developers generate both non-fungible and fungible tokens within the same contract. This reduces gas costs and increases developer flexibility. Engine is also building a paratoken which will be compatible with the erc 1155 tokens it developed for ethereum, effinity’s native token. Efi will be in reality, the first power token and with a confirmation period of just six seconds, the effinity blockchain will be able to process about 700 transactions per second effinity was designed by engine in conjunction with the web 3 foundation, to be a cross-chain nft blockchain That allows for ecosystem interoperability, incentives for people to engage with nfts and a consistent user experience in the polkadot ecosystem. Effinity will function as one of the hundred parachains secured by the central relay chain and interconnected with one another.
Thanks to polkadot’s cross chain technology, effinity’s parachain functions will therefore allow other parrot chains to incorporate effinity nfts into their respective ecosystems and take advantage of their native cross-chain abilities in gaming, defy other nft projects and even smart contract applications in terms of the features offered by Effinity efi’s, relatively swift transaction throughput ensures fast transactions and low gas fees which could potentially make effinity the go-to protocol for in-game nft trading. Secondly, effinity ensures its low gas fees by setting up what are called fuel tanks or a conglomerate of separate accounts, funded with efi tokens that are only used to pay for transaction fees. Thus, by placing e5 tokens into a fuel tank developers can essentially subsidize expenses for their consumers by resorting to fuel tanks to cover the majority of the transaction fee. Furthermore, efinity also provides users with its own automatic conversion mechanism called effinity, swap that improves the efficiency of partaking exchanges. Now, when it comes to tokenomics e5 counts a total supply of 2 billion tokens efi launched in august 2021 and is currently trading around the one dollar mark.
On december 30th, last year, infiniti secured the sixth parachain slot on polkadot receiving 7.7 million dot tokens from over twenty thousand community members. All contributors who staked dot for efi in the crowd loan can expect to receive their e5 tokens linearly over the course of the 96 week long parachain, lease period, which is almost two years next up. We have centrifuge a parachain project that has not yet secured its slot. However, given that its sister chain altair secured its parachain slot on kusama back in late september of 2021, i think centrifuge may have a fighting chance on polkadot.
Centrifuge is a defy lending protocol that aims to make credit more accessible to small businesses. It’Ll also provide a stable yield for investors by opening pooled liquidity to traditional finance and real-world assets. Centrifuge was co-founded by a team led by ceo lucas vogelsang, who previously founded the e-commerce company centrifuges raised nearly 12 million dollars from heavyweight investors, including firms such as galaxy, digital and iosg ventures. Now, centrifuge’s associated decentralized application called tin lake is a marketplace for tokenized real-world assets, so by minting nfts to represent these verified real-world tokenized assets centrifuge allows companies to collect assets, to use as collateral on their loans and quickly access liquid capital provided by individual investors. This essentially means that users could potentially take a real-world asset, such as a house or other type of real estate, for instance tokenize it as an nft and use that nft as collateral for alone.
I know this really is next gen stuff centrifuge is built on parity substrate, and it can therefore interact seamlessly with polka dot once it effectively becomes a power chain benefiting from the consensus and security protocols of polkadot’s relay chain, but until then centrifuge will act as a Stand-Alone proof-of-stake blockchain that conducts its transactions with its native cfg token centrifuge held its initial coin, offering on coin list in may of last year, at a price of 55 cents per token, and according to coin market cap centrifuge has a total supply of approximately 430 million Cfg tokens currently trading just above the 80 cent mark. Thus far centrifuge has raised over 2
2 million dot from 13 600 contributions, and it’s currently aiming to raise approximately 15 million dot to win a slot. If you are considering contributing, i will warn you that there are risks with doing so. Dot is locked up for a considerable period of time, and none of these projects are guaranteed success, so do bear that in mind now whether centrifuge ends up winning its slot or not. I do, however, find its use cases and its proposition to be rather appealing.
Thus, i will definitely be keeping my eye on the fuge now, that’s it for most of my video on my top five parachain projects on polka dot. I know you’ve been keen to know more about these and i will most definitely be doing a follow up. Video very soon now i do believe that polka dots plos represent a huge opportunity for both projects and investors alike, both from looking to gain early access to and benefit from, polkadot’s true potential, as perhaps one of the most promising smart contract shared blockchains in the space. At the moment – and i do think that the projects discussed in this video have potentially bright futures ahead of them, be it a carla’s, defy hub moonbeam, smart contract design, clover’s two-way peg system, effinity’s, innovative cross-chain, nft protocol or centrifuge’s real-world asset defy and nft symbiosis. These projects are, in my opinion, some of the top projects coming out of the polkadot parachain ecosystem, but i’m sure there will be a bunch of other, very promising power chains coming out soon, so do watch this space folks.
I will, however, reiterate that most plos will require you to stake your dot assets for almost two years, which of course does carry some inherent risks, particularly because you won’t be able to actually sell your contributed dot tokens. If the price suddenly appreciates – and as i mentioned, none of these are guaranteed long-term successes, but then again nothing ever is, and anyone who says otherwise is either unwise or telling straight up lies so dyor and don’t just ape in here guys, that’s all for today peeps, But i’m certain you’ll have loads of interesting questions, so please don’t hesitate to let me know and fire those comments down below now. Have you contributed to any plos in the past? What do you think of the projects in the video today? Keep me posted down below?
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