What is ParaState? A Guide to the Ethereum-Compatible Polkadot Parachain

For developers and users in the decentralized finance (DeFi) space, a common question is: “How can we overcome the limitations of Ethereum, such as high gas fees, scalability issues, and a lack of programming language support?”

ParaState is a high-performance blockchain designed to answer this question.¹ It functions as a Polkadot parachain that extends the capabilities of Ethereum, offering a more efficient, secure, and versatile environment for building and running decentralized applications (dApps).

What Problems Does ParaState Solve for Developers and Users?

While Ethereum is a powerful platform, its Ethereum Virtual Machine (EVM) has several well-known challenges that ParaState aims to fix:

• Limited Programming Languages: The EVM primarily supports Solidity, creating a steep learning curve for developers proficient in other popular languages.²

• Performance Bottlenecks: High network congestion on Ethereum leads to slow transaction times and expensive gas fees, making many DeFi applications costly to use.

• Smart Contract Vulnerabilities: Over the years, numerous exploits and bugs in EVM-based smart contracts have resulted in significant financial losses.

ParaState provides a next-generation infrastructure that addresses these core issues directly.

How ParaState Works: Bridging Ethereum, Polkadot, and WebAssembly

ParaState is architecturally unique because it combines the best features from different ecosystems to create a superior smart contract platform.

• Polkadot Parachain: As a parachain, ParaState runs in parallel with the main Polkadot network. This allows it to benefit from Polkadot’s shared security model, ensuring that the network is secured by Polkadot’s robust set of validators.

• Built with Substrate: It is developed using Substrate, Polkadot’s flexible blockchain-building framework.³ This allows for easy customization and upgrades.

• EWASM as the Core Engine: Instead of the standard EVM, ParaState uses EWASM (Ethereum-flavored WebAssembly) as its virtual machine.⁴ Wasm is a high-performance standard supported by major tech companies like Google, Microsoft, and Apple.

This combination allows ParaState to execute smart contracts at near-native speed while remaining fully compatible with the entire Ethereum ecosystem.

Key Features and Benefits of ParaState

For those looking for a better platform to build or use dApps, ParaState offers several distinct advantages:

1. Multi-Language Smart Contract Support: This is ParaState’s most significant feature. By using EWASM, it aims to support over 20 different programming languages, including Rust, C++, Go, and others.⁵ This unites a much larger community of developers, removing the need to learn Solidity from scratch.

2. Full Ethereum (EVM) Compatibility: ParaState includes built-in support for the EVM.⁶ This means any dApp, smart contract, or DeFi protocol built on Ethereum can migrate to ParaState without changing its code.⁷

3. Enhanced Performance and Scalability: By leveraging the Polkadot parachain model and the efficiency of WebAssembly, ParaState offers significantly higher throughput and lower transaction costs compared to the Ethereum mainnet.

4. Seamless Interoperability: ParaState is designed to connect different blockchain ecosystems.⁸ It plans to work with Ethereum bridge providers on Polkadot, allowing users to easily transfer Ethereum-based tokens (like ERC-20s) to the ParaState chain.

    

How ParaState Supports the DeFi Ecosystem

ParaState is fully equipped to host the next generation of DeFi. Its EVM and EWASM compatibility ensures it can support all essential DeFi applications, including:

• Decentralized Exchanges (DEXs)

• Lending and borrowing protocols

• Stablecoins

• Price oracles

Users can enjoy their favorite Ethereum-based DeFi applications in a higher-performance environment, while developers can build more complex and efficient protocols using the programming language of their choice.

Frequently Asked Questions (FAQs)

1. What is the main difference between ParaState and Ethereum?

The main difference is the underlying technology. While Ethereum uses the EVM and primarily supports Solidity, ParaState uses the more efficient EWASM, supports over 20 programming languages, and leverages Polkadot’s security and scalability.

2. Can I use my existing Ethereum wallet and tools on ParaState?

Yes. Because ParaState is fully EVM-compatible, you can use familiar Ethereum tools like MetaMask and Remix to interact with the network and deploy smart contracts.

3. What is a Polkadot “parachain”?

A parachain is an independent blockchain that runs in parallel within the Polkadot ecosystem. It connects to the central “Relay Chain,” which provides it with security and allows it to interoperate with other parachains.

4. Why is supporting multiple programming languages important?

It lowers the barrier to entry for millions of developers who are already experts in languages like Rust or Go. This leads to faster innovation, more secure code, and a larger talent pool for building dApps.