Moonbeam is launching on Parity’s Substrate framework. Designed as a smart contract chain for Polkadot, the platform works as a parachain, offering smart contract developers a way to run applications on the Polkadot network.
Moonbeam is also compatible with Ethereum smart contracts, meaning that builders will have the chance to potentially move their projects onto Polkadot.
Ethereum is known for its ingrained network effects, boasting one of the most robust developer communities in crypto. Unfortunately, scaling issues have hamstrung the network as of late, earning Ethereum criticism.
These scaling issues lead to high gas fees that make it expensive to use or run an application on the network. This summer, fees were so high that some companies had to shut down as they could not make up the costs.
While it’s hoped that certain Layer 2 solutions and the pending Ethereum 2.0 upgrade will improve the network’s efficiency, a viable solution could be years away.
Moonbeam hopes to solve some of Ethereum’s issues by offering builders a platform to build on Polkadot conveniently. Moonbeam said that:
“Developers can easily port their existing applications’ code to deploy on the more affordable, directly-governable Moonbeam platform.”
It’s also said to be interoperable with Bitcoin, meaning BTC holders can use the cryptocurrency on Moonbeam in the future.
While Moonbeam’s primary use case is running smart contracts, the chain could also bring other elements of DeFi such as oracles like Chainlink and Band Protocol over to Polkadot.
The project recently received a grant from The Web3 foundation to continue funding development.
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