ParaState: Unlocking Ethereum Smart Contract Functionality with Polkadot

• February 28, 2021 • 546

Ethereum was the first blockchain ecosystem that allowed the use of smart contracts to create a virtual agreement, the functionality allowed the network users to interact in a number of ways that involved their digital assets, without the need of an intermediary. Today, the DeFi economy practically runs on smart contracts. 

ParaState to solve current Issues of Ethereum

However, as big and popular as Ethereum is, it is lacking in a lot of ways when it comes to being used as a backbone for DeFi projects: 

·   Weak Smart Contracts: Smart contracts built on the Ethereum backbone are first-generation ones, which leads to different ways that these can be exploited. Furthermore, they have limited functionality, essentially putting roadblocks to unlock their true potential.

·   Limited Programming Language: Using outdated Solidity as a base programming language, smart contracts deployed on Ethereum and its sidechains offer much less flexibility than its counterparts.

·   Slow Performance: No matter how fast DeFi projects claim to be, ultimately they are dependent on the main Ethereum blockchain. This bottleneck means they can never achieve their desired performances. One example is the TPS, or transaction per second. The latest figures put it at roughly 14 transactions per second, an extremely low rate for the sheer number of projects running off it.

·   High Gas Fees: As the most popular blockchain for platforms and projects, there has been a huge load on the Ethereum network and this has led to the very high gas fee for timely confirmation of transactions.

ParaState: WebAssembly on Ethereum

These and other issues are seriously hindering Ethereum based platforms to perform. People using other networks are faced with a big issue: is it worth shifting their assets to Ethereum for a higher, but slower and more expensive yield? 

DeFi platforms like Polkadot are using advanced smart contract execution environments which are the next-gen runtime engine for their blockchain system. With better support, created toe used on a variety of hardware and software configurations, OS, and programming languages, WebAssembly is fine-tuned for performance and outstrips Ethereum Virtual Machine’s Solidity.

For dApp developers and smart contract enabled platforms, this raises a critical issue. Either they can go for the most popular Ethereum EVM and build slower and inefficient systems or opt for the better and speed-oriented WebAssembly. For them, they cannot have the best of both worlds and are limited to one system.

Not true now, as ParaState is one project that is all set to change this and give a third, much better option. The ParaState suite of software allows porting of the most famous non-Ethereum projects to the EVM. Using its Pallet SSVM, any blockchain platform can become Ethereum compatible, letting them enjoy the speed, throughput of the advanced systems on the largest blockchain ecosystem.

The reverse compatibility is also possible, allowing the existing smart contracts built on Solidity on the Ethereum network to be deployed without any alterations. Developers are further assisted by the vast community and the ability to code in more than 20 different languages.

The TPS is also drastically increased this way, covering the performance shortcomings of Ethereum. Along with this, ParaState is pre-packaged with a complete DeFi system for projects to rapidly deploy. With support for stablecoins, lending and borrowing protocols, price indexing through oracles, and DEX support of Uniswap, it has everything projects need to use the speed of the latest in ecosystems and the popularity of Ethereum at the same time. ParaState is fully compatible with tools and platforms like Metamask and Uniswap, all features will be available on ParaState at network launch.

STATE of Interoperability

To fund its development activities, ParaState Foundation and ParaState use STATE, a native token for the whole ecosystem. All of the STATE tokens will be pre-mined with a fixed supply.

All the components of ParaState, including the pallets, SDKs, and toolchains are open source and available for anyone to download, view the coding and deploy. The development of the tools and resources is overseen by the not-for-profit ParaState Foundation. Each on-chain transaction’s fee (the ParaState gas) would see 20% of the charges being sent to the ParaState Foundation developer fund. This automatic collection of the fee would lead to funds being collected for the foundation. Along with a set portion of the STATE token supply, the collected fee would be then in turn used by the team to sell the tokens in the market to pay for development costs, programmers’ and member’s salaries, etc.

In the near future, it can be expected to see a public IDO of ParaState`s token STATE, on a launchpad like DAO Maker, PolkaStarter, Poolz, ZENDIT, LaunchPool, or Paid Network. Follow us on Twitter and Telegram and don’t miss any updates.