As the blockchain ecosystem continues to advance, it is evident that interoperability between networks will play a vital role in widespread adoption. This will be the only way to unlock the full value that blockchain technology enables. Currently, the majority of the DeFi ecosystem is built on top of Ethereum, the largest smart contract platform. However, a massive increase in transactions has taken a toll on the network’s ability to process everything in a cost-effective manner.
Alternative and complementary smart contract platforms like Polkadot plan to offer a solution to this, extending a bridge between networks that allows for synthetic Ethereum-based assets to be easily utilized on a more effective platform. As a decentralized money market and liquidity protocol built on Polkadot, Konomi Network has tapped Darwinia to act as the bridge between network assets, creating a much more all-encompassing decentralized market.
Konomi’s money market protocol focuses on trading cross-chain, short-term crypto assets, creating an ecosystem to support as many assets across the blockchain economy as possible. Produced using Substrate, Konomi’s will improve base layer performance and offer the exchange of blockchain-agnostic digital assets, empowering the DeFi sector at large. Following the collaboration with Darwinia[a], Konomi will be able to easily bridge its money market platform with assets from blockchains such as Ethereum, TRON, EOS, Near Protocol, and additional heterogeneous blockchains that will be introduced down the line. This will make the Konomi exchange platform infinitely more robust, with the ability to offer the trading of assets across the entire blockchain spectrum.
Konomi is still setting the groundwork of its ecosystem, planning to launch live on the Polkadot mainnet in Q3 of 2021. The platform is available to test in its beta platform on a testnet, showing users a real-life example of some aspects of the cross-chain exchange. As a money market and liquidity provider, Konomi will be able to offer users substantially higher returns based on a reduction of transaction costs and instant finality. This will promote Konomi as the all-in-one marketplace users can go to exchange crypto assets. Until Proof-of-Stake fully launches on Ethereum, ushering in much faster and cheaper transaction costs, more users will opt for platforms that utilize Polkadot, where they can potentially save hundreds if not thousands of dollars in platform transaction fees.
Darwinia Enables Broader Cross-Chain Use Cases
Darwinia’s mainnet application is live, meaning any Substrate-based application can implement the platform to create an easy bridge between crypto assets. The Darwinia network runs on RING, the native cryptocurrency of the platform that acts as the network’s gas. RING allows users to operate on the platform while also enabling users to stake the cryptocurrency for three to thirty-six months and earn KTON for their long-term commitment to the network. Darwinia offers various applications, with more down the pipeline, such as a virtual simulation game called Evolution Land, a high-precision blockchain date explorer, a DeFi Token DEX, and a cross-chain NFT marketplace. As Darwinia continues to enable Polkadot platforms to easily integrate assets from across the entirety of blockchain applications, the Polkadot and Darwinia ecosystems, as well as all their partners, will continue to grow alongside adoption.