Cryptocurrency

Polkadot & Kusama to Access Global Decentralized Bridge Via Wormhole

At the last count, there were more than 10,000 cryptocurrencies currently in circulation, according to CoinMarketCap. While most of these will be built upon the Ethereum blockchain, many are not. In the current iteration, the value stored on each of those networks can only flow to others via exchanges. While that’s fine in theory, exchanges have become incredibly powerful by acting as middlemen for wealth to move through the crypto ecosystem. 

A number of projects have been aggressively building what are called cross-chain bridges, essentially digital pathways that allow data, money, and dapps to move seamlessly from one blockchain to another. Though the entire cross-chain bridge industry is experiencing security breaches, the situation for MultiChain is particularly serious. Recently, hackers have continued to exploit a vulnerability in the cross-chain bridge MultiChain.

Polkadot and Wormhole 

 The blockchains as we know them, are essentially walled gardens, in which assets, data, and users find it difficult to move. Take Ethereum and Bitcoin as an example. While all on-chain data is viewable by the general public, that data is locked on that chain. That’s because, in order for the ledger that records all transactions on the blockchain to be accurate and secure, all participants must abide by the rules of the network. Polkadot parachain Acala and its Kusama-based counterpart Karura are integrating with cross-chain bridge Wormhole, bridging it’s decentralized finance (DeFi) ecosystems with eight major Layer 1 blockchains.

The Wormhole integration will let users send tokens from other Wormhole-connected Layer 1 networks to Acala and Karura. From there, tokens can either be converted to other Polkadot and Kusama native assets or be used as collateral to mint the aUSD and kUSD stablecoins. Going further, Karura will be the first of the two networks to join Wormhole. Karura serves as Acala’s equivalent on the Polkadot Canary network, Kusama. Like many previous launches and upgrades, new integrations will first be tested on Kusama before being committed to the more secure Polkadot network.

Trade Like Fire

Once the bridge is operational, it will give the Polkadot and Kusama networks easy access to over $200 billion of liquidity from eight other Layer 1 networks. For example, DeFi protocols built on Acala or any other connected Polkadot parachains will be able to integrate tokens sent through Wormhole to use in yield farming strategies or to provide liquidity. Acala and Karura will join Ethereum, Avalanche, Solana, Polygon, Terra, BNB Chain, Fantom, and Oasis to become the ninth and tenth networks to allow token bridging through Wormhole. 

The Hacked Bull Run: CrossChain Lives On

While Wormhole has helped create a more interconnected blockchain ecosystem, many have raised concerns over the security of the protocol and other similar cross-chain bridges. In February, the Wormhole Solana bridge fell victim to one of the biggest exploits in DeFi history when a hacker faked the bridge transfer signatures to steal 120,000 Ethereum worth over $322 million at the time. 

More recently, the Ronin Network team disclosed that its bridge connecting Ethereum mainnet to the Axie Infinity ecosystem was hacked for about $552 million on Mar. 23, further highlighting the vulnerability of cross-chain bridges. Nevertheless, as more blockchains look to offer a way to connect with Ethereum and other Layer 1 networks, demand for cross-chain interoperability solutions remains high.

Grayscale Investments Launches a Trust With Solana, An Ethereum Rival

In recent news, Grayscale, a leading digital asset investment firm, is launching a new product that provides exposure to Solana, one of the most popular digital assets globally. The Solana Trust will be the 16th option in Grayscale’s growing product range for institutional and high-net-worth investors.

The Solana network, like the Ethereum network, is one of several initiatives aimed at expanding blockchain’s utility beyond that of a peer-to-peer payment system. As an alternative to pure Proof-of-Stake (PoS) and Proof-of-Work (PoW) blockchains, the Solana protocol proposed the Proof-of-History (PoH) consensus mechanism.

Why Solana?

It’s simple to see why Grayscale would want to expose Solana to its community. Though its growth was reduced this month due to overall market turmoil, the blockchain’s native token SOL is still one of the finest assets in 2021, particularly among large cryptocurrencies, with a year-to-date gain of 687 percent. These returns surpass those of several of its main competitors, including Ethereum, Algorand, Cardano, and Polkadot, which are all seeking to be the leading platform for decentralized finance applications, non-traditional transactions, and cryptocurrency games. Avalanche, Solana’s only other big competitor, has increased 680 percent in 2020 but only has a fraction of Solana’s market valuation.

Solana is also the favored platform of Sam Bankman-Fried, the 29-year-old founder of crypto exchange FTX and the industry’s richest person with a personal fortune of $26.5 billion. His outspoken support for the network has been essential in raising its public profile among companies and builders.

Reaction to the New

Grayscale CEO Michael Sonnenshein reacted to the latest addition and pointed out that Grayscale is thrilled to extend its offerings and foster crypto adoption. He said, “For the last eight years, Grayscale has been at the forefront of offering investors efficient exposure to the ever-evolving digital currency ecosystem.“We have had a front-row seat to the mainstream acceptance and adoption of crypto and increasingly find that investors are diversifying their exposure beyond digital assets like Bitcoin and Ethereum. Our family of Grayscale products will continue to expand alongside this exciting asset class, as we remain committed to offering investors opportunities to access the digital economy.”

Speaking on why he chose Solana, Sonnenshein noted that Solana’s near and long-term potential in spotting new use cases for blockchain technology was a strong bait aside from its performance. He said, “What’s been interesting about Solana is that it gives users the ability to learn, experiment, and build. They generally have more budget to experiment on the protocol than some other more established blockchains like Ethereum, because of lower transaction fees.” 

Bitcoin (BTC), Basic Attention Token (BAT), Bitcoin Cash (BCH), Chainlink (LINK), Decentraland (MANA), Ethereum (ETH), Ethereum Classic (ETC), Filecoin (FIL), Litecoin (LTC), Livepeer (LPT), Stellar Lumens (XLM), Zcash (ZEC), and Horizen (HOR) (ZEN) are Grayscale’s other product of which Solana will be joining.

 Grayscale also provides thematic exposure to digital assets through its diversified products, Grayscale Digital Large Cap Fund, which covers the top 70% of the digital currency market by market capitalization, and Grayscale DeFi Fund, which tracks the CoinDesk DeFi Index through a market-capitalization-weighted portfolio.

Grayscale’s investment products are available through periodic private placements to institutional and individual authorized investors.

Polkadot Ecosystem is Able to Gain $10 Million VC Fund Amidst Activity

China’s LD Capital recently said that they are launching a $10 Million Polkadot ecosystem fund. The announcement comes in the wake of a partnership between Moonstake and RockX on Polkadot.

A news publication on beincrypto stated that Moonstake is having a partnership with RockX on Polkadot. Polkadot’s Rococo V1 project was successful on the Plasm Network sidechain and connected with the locals too. 

LD Capital feels that Polkadot and the working environment is good for expansion. Using the progress, Polkadot is having a sublime run in the week. The announcement was tweeted by China’s LD Capital on January 21.

The $10 Million Polkadot fund will be used in capital support, development advisory, community building, and marketing for early projects. These activities will be focused on Polkadot. 

The China organization is set the fund at $10 million. ?? ?????? is a trader in the crypto market since the last bear market had this to tweek on Moonstake and RockX announce a partnership focused on $DOT.

As China’s oldest venture capital firms, LD Capital has its focus on blockchain technology. Earlier, they had invested in Vechain, Qtum, and Eos. Crunchbase was founded in the year 2017. On January 22nd, Kyle Chassé, the CEO of PAID Network, had tweeted about the Plasm Network getting in partner with Rococo v1.

He said that they are happy to have Polkadot test net, Rocco. They are actively working on ensuring that our integration with Plasm is embedded for being able to deliver interoperability, bleeding edge tech, and scalability.

This is in conjunction with the Polkadot testnet. For Plasm, having a sidechain on Polkadot is significant. That enables them to work sublimely on PAID project. BeInCrypto reported on January 20th Moonstake, a staking company, and RockX, a digital assets platform announced a partnership on Polkadot. 

RockX is working in Polkadot in there, technical support besides a $20 million program. Polkadot’s DOT token had replaced XRP Ripple Lab in the month of January, becoming the fourth-largest cryptocurrency.

That was because of Polkadot surge in popularity and regulatory problems faced by Ripple.