Moonbeam (GLMR) operates as a layer-1 blockchain solution that seeks to improve Ethereum interoperability within the Polkadot ecosystem. The network is a pioneer in the market as the first full functionally parachain live on Polkadot. The goal of Moonbeam is to provide a seamless transition for developers seeking to escape the congestion and high gas fees of Ethereum and to operate as the main smart contract programmable blockchain within the Parachain system.
What Problems Does Moonbeam (GLMR) Attempt to Fix?
There are multiple problems that Moonbeam helps to reduce. Primarily, it was designed to provide a smart contract programmable layer to the Polkadot Parachain ecosystem. This system provides Ethereum developers with a way to escape the current congestion issues that have led to record-high gas fees as of late.
Moonbeam is based on the Substrate programming language which enables it to provide a framework for blockchains to interact with Ethereum in a seamless manner. The platform was built from the ground up to be compatible with the Ethereum developer toolchain and network. As such, the protocol supports a variety of popular coding languages. You can create using any protocol that is accepted by the EVM (Ethereum Virtual Machine) bytecode, making it flexible for developers.
Ethereum’s positioning as an early entry into the market has meant that its developers are limited in their capabilities versus modern-day fourth-generation blockchains. The system employs a multi-chain approach which empowers developers to create more helpful and advanced Dapps. Moonbeam provides Ethereum developers with more features, fewer fees, and more scalability without the need to recode. It also saves developers a ton of time in regard to the creation process. The network has built-in integrations for infrastructure services like Chainlink and The Graph. It also supports assets like DOT and the huge selection of ERC-20s in the market today.
Benefits of Moonbeam (GLMR)
There are a lot of benefits that Moonbeam brings to the market. For one, it operates as the main Polkadot onramp. The network’s developer-oriented approach makes expanding Ethereum platforms into the Polkadot ecosystem easier than ever. The system provides a fully Ethereum-compatible environment on Polkadot.
Moonbeam was set up to mirror the Ethereum network’s ecosystem. It shares the same Web3 RPC, accounts, keys, subscriptions, logs, EVM implementation systems, and Web3-compatible AP. Users can also leverage Ethereum-based tools like MetaMask, Remix, Hardhat, Waffle, and Truffle. The system is so accurate that you can interact with the protocol using your existing Ethereum accounts and keys.
More than Ethereum
Moonbeam supports the integration and token transfers from other chains including Bitcoin as well. It also supports the use of off-chain sensors called Oracles. Oracles can communicate data to and from blockchains. As such, they enable developers to make more robust Dapps.
How Does Moonbeam (GLMR) Work
Parachains are decentralized networks that leverage the Polkadot and Kusama blockchains. These networks leverage Polkadot’s security and scalability but possess their own individual tokens, governance mechanisms, and more. Polkadot operates as a sort of highway for decentralized networks. It enables cross-blockchain transfers of any type of data or asset. The blockchain integrates a sharded design to provide unmatched scalability.
Notably, Parachains can communicate data and value directly and can be customized to meet any need. All Parachains connect via the Relay Chain. This technical structure provides developers with the ability to leverage other networks’ features and services securely.
Moonbeam utilizes portions of Polkadot’s consensus system and introduces its own DPoS (Delegated Proof-of-Stake) multi-layered approach for network smart contract executions. This strategy improves scalability and enables it to scale vertically. According to company documentation, Moonbeam can handle +10,000 tps (transactions per second). In comparison, Ethereum supports only 15 tps.
The first layer in the Moonbeam consensus system includes the parachain staking filter. This system is tasked with selecting Validators, called collators on the Parachain level. The system utilizes staked-based ranking to accomplish this task. This strategy ensures that all Validators have an economic incentive to perform their duties correctly. From there, the second layer further filters out collators until achieving a subset for each slot.
Users can stake their GLMR and secure low-risk rewards. In Moonbeam you can delegate your tokens to collators. These nodes then gain rewards for their participation in securing the network. These rewards are split between those who delegated based on their contribution to the total amount staked.
Moonriver is a test network for those seeking to get a head start on their Moonbeam applications. This network provides developers with the ability to test and verify their Dapps under real economic conditions. This strategy improves security and ensures that only market-ready networks ship to Moonbeam on Polkadot.
Moonbeam integrates a community governance mechanism to ensure the system progresses according to its users’ specifications. The weighted voting system enables users to stake their tokens. The more tokens they stake and the more say their votes hold. This style of community governance ensures that a project’s community stays cohesive.
GLMR – Glimmer
Moonbeam users need to hold GLMR to utilize the network’s services and features. GLMR functions as the primary utility token for the ecosystem. It’s used for gas fees when executing smart contracts, paying fees, sending value, and staking. GLMR is compatible with other services within the Polkadot ecosystem. It’s also the main governance token for the network.
Moonbeam (GLMR) – A Great Way for Ethereum Developers to Expand
Moonbeam has entered the market at the perfect time. There are now more Ethereum developers than ever. These teams are eager to find ways to avoid the current gas fees and improve their user experience. Moonbeam provides valuable relief to these problems while also expanding the developer’s capabilities. As such, it’s a vital component in the Polkadot and Ethereum ecosystem. You can expect to hear more from this development team as the protocol expands its market penetration in the coming months.