The pseudonymous host of Coin Bureau is sharing his favorite projects built on the new crypto network Polkadot.
The host, known simply as Guy, tells his 531,000 subscribers that he is keeping his eye on three projects with a fair shot at winning a parachain slot, which is essentially a Polkadot-powered blockchain with a higher transaction throughput than Ethereum.
[adinserter block="1"]Polkadot (DOT), founded by Ethereum co-founder Gavin Wood, is a relay chain that itself does not support smart contracts.
Explains Guy,
“[Polkadot] gets smart contract functionality from additional blockchains that plug into the relay chain, these are called parachains and parathreads. They rely on the relay chain for consensus, interoperability and security…”
Guy adds that only 100 parachain slots are available on the relay chain, which makes the process to attain one fairly competitive.
Acala Network, the crypto analyst’s number one Polkadot project, has the best chance of gaining a parachain slot, according to the crypto trader.
“Of all the Polkadot projects out there Acala is the most likely to secure a parachain slot… It is one of the few Polkadot projects Gavin Wood follows on Twitter… [and] most importantly, Acala is looking to bring some serious value and utility to the polkadot ecosystem. Acala brands itself as Polkadot’s decentralized finance (DeFi) hub.”
Guy notes that Acala’s governance token will not launch until the project secures a parachain slot, however, DOT holders can loan their tokens to the DeFi project during its parachain auction and will be rewarded with an equal quantity of Acala’s token.
The next Polkadot project on the analyst’s list is Phala Network, which has already released an ERC-20 version of its PHA token.
Phala was founded at the end of 2018 by a group of individuals with experience at some of the world’s largest tech companies and is known to be favored by Wood, says Guy. Phala is a privacy preserving decentralized database with smart contract functionality.
The PHA token has more than doubled in value over the past month, but Guy warns that the team does not appear to be as close to securing a parachain as Acala.
[adinserter block="1"]Rounding out the crypto expert’s list is Litentry (LIT), which Guy notes is ready for a parachain slot, already has its token trading on the open market, and has close ties to Gavin Wood.
“Litentry has one hell of a unique value proposition and that’s cross chain identity management. In other words, Litentry will make it possible to do things like gain gravitas in governance or build up a credit score that can be used to borrow with less collateral in a private and trustless manner.
Like Phala, Litentry has three core products and protocols. The first is the Litentry registrar protocol which makes it possible to verify unique on-chain identities in a trustless manner. The second is the identity run time protocol which allows you to link accounts cross chain into a single identity and the third is the identity authenticator mobile app which will make it possible to use on-chain identities for off-chain purposes.“
Litentry’s governance token exists on both the Ethereum and Binance Smart Chain networks and is currently sitting at just under a $200 million market cap, according to CoinGecko.
l
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Tithi Luadthong
