ParaState Foundation is creating Ethereum on Steroids for the Polkadot ecosystem

ParaState

SINGAPORE, January 14, 2021 /EINPresswire.com/ — The ParaState Foundation, a recently founded non-profit in Singapore, is announcing an important update to the project’s technical white paper. In order to bring ParaState’s core tech, the ssvm-pallet (a next-gen Ewasm, or Ethereum flavored WebAssembly, on Substrate), toward massive adoption, ParaState tweaked the paper to include ParaState’s new technical strategies. Below is the summary of our two major go-to-market approaches.

## First-party substrate blockchain

ParaState will create a stand-alone substrate blockchain that interacts with Polkadot through parathreads initially. This allows ParaState to launch a Layer 1 blockchain securely and economically.

Parathread’s primary difference from parachain is the cost to interact with the Polkadot relay chain. But it is easier to bootstrap a token economic model for a parathread than for a parachain.

When a new parachain project launches, its native token won’t reach a reasonable market price at the very beginning. A project that allocates too many tokens for parachain auction will cause a huge price pressure on its native token undoubtedly. But if a project allocates too small a percentage of token rewards for parachain auction, it will fail to attract DOT holders’ support as DOT holders will simply compare the APY of DOT staking rewards against the offer from parachain auction.

To address this dilemma, ParaState will initially launch a stand-alone blockchain to interact with Polkadot via parathread first, and focus on onboarding an on-chain application suite. ParaState will be both EVM and eWasm compatible, with built-in DeFi infrastructures such as lending protocols, DEX, and oracles. Today, the daily transaction volume on Polkadot mainnet is around 5,000, and the total daily gas cost is less than 100 DOTs. It is economical to interact with Polkadot via parathread on a pay-as-you-go basis for the near future. When the ParaState native token, STATE, achieves a stable and reasonable market price, ParaState will participate in parachain auctions.

## Third-party adoption of the ssvm-pallet

ParaState’s core technology is an Ewasm VM module, known as the ssvm-pallet, on the Substrate blockchain framework. Ewasm is a WebAssembly VM specifically designed to be compatible with the Ethereum protocol. It supports multiple programming languages on the front end, and could be much faster than the EVM. Hence, the SSVM pallet could be utilized by any Substrate blockchain that intends to expand its developer base.

The Web3 foundation graciously funded ParaState’s development team to work on the ssvm-pallet. That work is nearly completed and we look forward to close out the grant project soon.

According to the Web3 Foundation’s official data, there are more than 100 projects under development to build their own substrate blockchain. All these projects are welcome to become ParaState’s partners to integrate with ssvm-pallet into their blochchain system. For such collaboration, ParaState will implement a pay-as-you-use (PAYU) business model, which means there is no upfront deployment fee for the party that wants to integrate with ssvm-pallet. ParaState will collect a small percentage gas fee on each smart contract transaction via ssvm-pallet, and deposited it into a developer treasury account managed by the ParaState foundation. This fee is collected in the native cryptocurrency of the participating substrate blockchain. In exchange, ParaState’s partners gain access to high-performance runtime infrastructure/developer tools/developer community from ParaState.

With a unified developer community, ParaState can bridge the ecosystem between Ethereum and Polkadot, and boost the whole cross-chain software portability.

Go and build with ParaState!

PR Director
ParaState Foundation
[email protected]