Overview of $poop
Moonsama recently launched an NFT marketplace called Raresama, on Moonbeam network. The Moonsama team wanted Raresama to be fully governed by the community members, so they decided to introduce a governance token known as $poop.
Now, the $poop token holders could vote on the governance proposals and participate in the decision-making of Raresama. All the fees collected via trading and minting of NFTs goes to the “Moonsama Community Fund”. Since Raresama has a decentralized governance, it is the community who decide how to spend the funds.
Why Moonbeam?
The team chose Moonbeam because it is the top EVM compatible parachain on Polkadot and of course because of its revolutionary xc-20 token standard. The $poop token, being minted on the Moonbeam network is a xc-20 token, which means it is a substrate native asset but compatible with EVM environment.
How $poop benefits from Moonbeam’s xc-20 standard ?
xc-20, the cross chain token standard was introduced by the Moonbeam Network. It is a technological breakthrough as this standard gives any substrate asset the power of EVM compatibility. Being a xc-20 token, $poop gets the following advantages.
- Transferrable to all parachains: $poop can be transferred to any parachain in a trustless manner via XCM. Parallel Finance could be the 1st parachain to utilize $poop in it’s protocols.
- Use in EVM DeFi: xc-20 token are substrate native, but can be utilized the same way as any other erc-20 token. This makes $poop compatible with all the EVM dApps like Curve finance, Beamswap, etc.
- Transfer to other chains: xc-20 token standard gives $poop the flexibility to be transferred to other non-substrate chains like Ethereum and Avalanche. The reason being: xc-20 asset can be utilized as erc-20 tokens.
- Governed on-chain: Being a substrate native asset, $poop can be governed via decentralized on-chain governance.
Now, substrate native assets like ACA, RMRK can be utilized in Ethereum DeFi like any erc-20 token. ACA and RMRK when transferred to Moonbeam becomes xcACA and xcRMRK. This makes them compatible with the EVM environment and dApps. These can be further transferred to other non-substrate chains like Ethereum. xcRMRK has a liquidity pool on Sushiswap Ethereum.
Cross-chain communication
Vitalik Buterin, the founder of Ethereum, once said “the future will be multichain, but not cross-chain”. Vitalik was factually correct as establishing cross-chain communication between blockchains in a trustless manner is a big problem.
When sending 100 tokens from chain A to B, A have to trust the chain B that it won’t mint more or less than 100 tokens. Also, the transfer involves bridges, which in most of the cases are centralized. Bridges comes with inherent risks, and we have seen multi-billion dollar of bridge hacks in last 2 years.
But as they say, everything is impossible until it’s done. Polkadot with it’s unique design fixes the issue of cross chain communication. Let’s discuss how does Polkadot enable the trustless communication among blockchains?
How does Polkadot make this possible ?
To understand how Polkadot makes cross chain communication possible, let’s first understand what exactly Polkadot is.
Polkadot is a layer-0 meta protocol that enables communication among blockchains connected to it. The connected chains, known as Parachains, are built using substrate framework which allows them to be application specific. The parachains can also be relay chains with other L1 chains connected to it. Thus, Polkadot is a blockchain of blockchains. At present, there are only 100 parachain slots available in the relay chain. Thus, projects have to win an auction to acquire a parachain slot.
- Polkadot is a fully sharded state machine where all connected chains share state with whole system. The state of a blockchain at any time is the account balance of all the addresses and contracts of the network. The state transition proof of all parachains is verified independently on the relay chain, consequently they all share state with the entire system.
- Polkadot offers shared security. This means all the parachains regardless of their market-cap, leverages the multi-billion dollar of economic security of the Polkadot relay chain. A PoS chain with $1 Million market cap is as secure as the PoS chain with $1 Billion market cap, as long as they are parachains.
Now, since the chains have a unified state and live under the Polkadot’s security umbrella, the trustless communication becomes possible. Chain A can transfer tokens to chain B without having to worry if he will mint more or less. This is because the state transition proof of both chains will be ultimately verified by the relay chain validators. This eliminates the need for trust while transferring tokens.
XCM (cross consensus messaging) is used to transfer tokens and messages across the parachains in a trustless fashion. XCM is a communication language which defines how the messages will be composed, sent and interpreted by the destination chain. The transfer uses state channels (instead of bridges) which are as secure as the relay chain.
Conclusion
With second largest active developer community, Polkadot is no less than an Engineering Powerhouse. Polkadot has a sufficiently decentralized base layer and the substrate framework give developer high flexibility to create innovative projects. This is the reason why big projects including Moonsama have decided to build and launch on one of its parachain, Moonbeam Network.
In fact, any project would want that their native token to have both substrate and evm compatibility. This is the power of Moonbeam’s xc-20 token standard. Thus, for developers, launching their dApp on Moonbeam ensure their dApp gets a wider reach.
Important Links
Raresama website: https://raresama.com/
Moonbeam website: https://moonbeam.network/
Polkadot website: https://polkadot.network/
Polkadot wiki: https://wiki.polkadot.network/
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