Ethereum protocol has dominated the Decentralized Finance (DeFi) and Decentralized Applications (DApps) as it has been the preferred protocol hosting these emerging powerful applications. A quick review of the existing DApps and many programmable digital assets shows that these applications are all hosted on the Ethereum network, hence run on the Ethereum Virtual Machine (EVM). However, it is common knowledge among those involved in crypto projects that Ethereum has its limitations which have crippled the scalability, speed, and security of many projects.
Some of the most cited challenges with the Ethereum network are insecure smart contracts, limited programming languages, slow performance of particular features, and high gas prices. ParaState is a project that aims to solve the problems associated with the Ethereum network, particularly the high gas fees and increasing need for interoperability.
What is ParaState?
ParaState is a proof-of-stake blockchain platform aiming to become a Polkadot Parachain extending the frontier of Ethereum with substrate framework. By this, it aims to provide a friendlier environment for the execution of smart contracts. The use of Polkadot Parachains enables it to provide services to other Parachains and Polkadot applications. ParaState supports 20+ programming languages to create smart contracts compatible with Ethereum. This enables it to unite a larger community of developers to boost cross-chain interoperability.
How ParaState Increases the Capabilities of Ethereum
Large developer community
Currently, all the Ethereum smart contracts work on EVM pallet, which is ParaState’s application. It also provides developers with a next-gen smart contract implementation environment, EWASM- an Ethereum- flavored WebAssembly. The two infrastructures are interconnected and communicate with each other, sharing the same account system on ParaState.
These features enable the developer community to surf in a highly optimized industrial standard infrastructure while checking out other new possibilities on the Ethereum network.
What’s more? These smart contracts do not pay a dime to work on the Ewasm VM. So far, ParaState supports 20+ programming languages to create smart contracts compatible with Ethereum, consequently expanding the developer ecosystem.
Performance on steroids (faster performance speed)
One of the most important features of ParaState is derived from Polkadot Parachains, which is a substrate-based blockchain that is already enjoying much higher transaction per second (TPS) as compared to Ethereum. ParaChain utilizes the SSVM to execute smart contracts. SSVM is recognized by IEEE as the fastest software execution sandbox.
Built-in DeFi infrastructure
One of the most powerful features of ParaState is its core DeFi infrastructure that is built-in. These infrastructures include stable coins, Uniswap exchange, lending protocols, and price oracles. These DeFi software apps are adapted to the ParaState’s EWASM VM, hence enjoy higher performance and interoperability with the WebAssembly ecosystem.
ParaState token (STATE)
STATE is the native token of ParaState. The coin is an innovative token backed by developer treasuries. Based on the sustainable and decentralized open-source software development, all Substrate blockchains that utilize the Pallet SSVM agree to collect a percentage of transaction fees (gas) on all Ewasm transactions and contribute it to a developer treasury, which is under the management of the ParaState Foundation. STATE is awarded to node operators, who secure the network, hence are required as gas from users. In other words, STATE is backed by a collection of native Parachain tokens contributed to the developer treasure as ParaState gains developer adoption and use.
STATE is based on a fixed supply, such that even if they are paid as gas to the network, a portion of the supply will be burned to reduce the supply over time. DApps located in ParaState also receive STATE gas rewards.
Conclusion
ParaState has enabled the adoption of the Ethereum protocol to the Polkadot ecosystem to bridge the gap between the two ecosystems. In other words, ParaState is the bridge connecting applications developed at EVM and Polkadot. Looking at the whole ecosystem of ParaState, the platform has all the qualities to become the protocol of choice to create next-gen Web3 apps to support the ever-growing users of Ethereum blockchain, particularly those involved in DeFi and DApps projects.
