Acala Brings First Layer-1 Chain Customization to Polkadot

Acala, the first parachain on Polkadot, brings Hybrid Finance (HyFi) and Layer-1 Chain Customization to Polkadot Ecosystem

The first parachain to win an auction slot on Polkadot, Acala went live today, bringing HyFi and Layer-1 chain customization to Polkadot. In November, Acala was the first DeFi project to win the Polkadot parachain auction with a community contribution of Poladot’s DOT token worth over $1.27 billion.

Individual application-specific blockchains are joined to Polkadot’s Relay Chain through parachains. One of the network’s first offerings will be an EVM+-enhanced version of the Ethereum Virtual Machine, a decentralized stablecoin, and a trustless liquid staking derivative. Acala, currently has over $600M locked in the smart contract as Liquid Crowdloan DOT (LCDOT) with over 200,000 token holders globally. Binance, the world’s largest cryptocurrency exchange, stated today that as soon as the token becomes transferrable on mainnet, it will list it and start trading pairings against BTC, BUSD, and USDT.

The Rise and Rise of Polkadot

Like many post-Bitcoin cryptocurrencies, Polkadot is both a token and a decentralized protocol that can be purchased and traded on exchanges like Coinbase, Binance, ByBit and Kucoin Exchange.

The Polkadot protocol allows unconnected blockchains to securely communicate with one another, allowing currency or data to move freely between, for example, the Ethereum and Bitcoin blockchains. It’s also built to be fast and scalable, thanks to the usage of many parallel blockchains (or “parachains”) that offload most of the processing load from the main blockchain.

The Polkadot token (DOT) has two major uses on the Polkadot network: a governance token that allows holders to vote on the protocol’s future and is used for staking, which is how the Polkadot network validates transactions and generates new DOT. As part of your investing plan, you may buy and sell DOT on exchanges like Coinbase.

Substrate and Polkadot are distinct from Ethereum in a way that will enable a slew of new chain-level developments outside of the EVM sandbox. Substrate’s potential and durability allow for the development of Acala EVM+ to optimize for Substrate’s full potential and longevity, rather than redeploy Ethereum on Polkadot and inheriting all of the difficulties Polkadot was designed to tackle.

Projects, including Acala, Plasm and Clover, are building the infrastructure and ecosystem on Polkadot by encouraging cross-chain development. This new ecosystem aims to take blockchain from theory to practice.

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