Why Was StaFi Protocol Built on Substrate (Polkadot)?

“In any given moment, we have two options; to step forward into growth or step back into safety and stagnation.”

— — Abraham Maslow

Another wise man said;

“Every success story is a tale of constant adaptation, revision and change”

— — Richard Branson

It all started in 2008 with a mail containing a link to a paper titled; Bitcoin: A Peer-to-Peer Electronic Cash System,” by someone or a group of persons with the name “Satoshi Nakamoto”.

This paper and innovation will go on to revolutionize the global financial system and fight the major flaws in it.

The initial and central idea of this development is to hand to each individual, the power to control their money as they deem fit without the intervention or controls of the government or financial institutions.

Bitcoin will begin this revolution but as expected, it gave birth to several branches which have all strived to better the general idea of the Bitcoin or cryptocurrency ecosystem. One of these branches is the Polkadot Network.

Polkadot

Polkadot is a next-generation blockchain technology that connects numerous specialized blockchains into a unified network. Polkadot was created as part of a larger vision for a network that collects monetary power from monopolistic corporations and gives back to the individual. It builds on the revolutionary promise of earlier blockchain networks while also providing other basic advantages.

Key Benefits of Utilizing the Polkadot Network

Easy Upgrade

Blockchains require upgrades to remain relevant and continue their evolvement. Upgrading existing blockchains involves what is known as “hard forks,” which result in two distinct transaction histories that can divide a community in two and this can take a very long time and energy to finish. With Polkadot, forkless upgrades are ensured. This allows blockchains to easily upgrade.

Scalability

Isolated blockchains can only sustain limited traffic. Polkadot is a sharded multichain network, which means it can process numerous transactions on several chains concurrently, reducing delays that existed on traditional networks that handled transactions one at a time. This parallel processing capacity enhances scalability significantly and offers the ideal circumstances for wider adoption and further development.

Self-Governance

Polkadot communities manage their networks as they see appropriate, and they have a transparent stake in the development of the whole Polkadot network governance. Projects may modify and improve the governance of their blockchain to their specific requirements and experiment with new concepts.

Togetherness

Polkadot networks and applications can exchange information and functions easily without relying on centralized service providers. Unlike earlier blockchain networks, which mostly functioned as independent systems, Polkadot allows for interoperability and cross-chain communication. This enables users to transmit information between chains and provides room for innovative features.

Polkadot’s ecosystem is expanding and becoming more robust as projects understand the benefits and convenience of building on the network. Polkadot’s one-of-a-kind network offers projects with more opportunities for creativity and flexible modification that was lacking in previous networks.

Polkadot was created to promote cross-chain connectivity, allowing Substrate-based blockchains to scale independently. “Substrate” is an open-source platform that allows you to quickly develop complete and customizable blockchains. It is the central tenet of Polkadot’s cross-chain development and expansion.

Any blockchain developed using Substrate will be inherently compatible with Polkadot, allowing you to connect to it as a parachain when the mainnet launches.

Substrate enables you to simply plug in the functions you want while also allowing you to modify them whenever necessary.

By linking your blockchain to Polkadot, you will be able to send arbitrary messages to other chains in the Polkadot network while also benefiting from Polkadot’s pooled security. One of the platforms that have built on Substrate and are utilizing the Polkadot parachain connection is StaFi.

StaFi

Staking Finance (StaFi) is a decentralized finance (DeFi) protocol that is the first to solve the problem between mainnet security and token liquidity by unlocking the liquidity of staked tokens.

StaFi unlocks this liquidity by creating and distributing alternative tokens (rTokens) on a 1:1 basis of the tokens staked on the original chain. These alternative tokens can also be sold but the possibility of the transfer and sell-off is where substrate and Polkadot come in.

The bottom, contract, and application layers are the three layers that constitute the StaFi network. The bottom layer is primarily based on a blockchain system developed by Substrate, and the overall design incorporates several development modules, such as a consensus module, P2P module, staking module, etc.

The contract layer allows for the creation of a variety of Staking contracts, such as Staking contracts for XTZ, Atom, and Dot. Staking Contract allows token holders to stake their tokens and earn staking rewards. The only difference is that they will receive extra rewards in the form of rTokens. Finally, the application layer allows third-party StaFi-based APIs or customized APIs to establish a decentralized bonded asset trading market on the StaFi protocol for rTokens to circulate, transfer, and trade.

StaFi is linked to Polkadot as a parallel chain, sharing Polkadot’s underlying consensus, while Polkadot guarantees the primary security and performance of the relationship.

The StaFi team is in partnership with Substrate because the project built by Parity will help StaFi explore the blockchain world with multiple developers to further expand their projects.

Substrate developed the StaFi protocol, which uses Nominated Proof-of-Stake (NPoS) to complete Staking by establishing Staking Contracts in the upper layer to interact with public chains. This development enables it to connect and interact with the Polkadot easily.

Conclusion

Parity developers combined all of the functions required to construct a blockchain into a framework called Substrate, in order to efficiently build various blockchains. The goal was to utilize everything learned while developing Ethereum and Bitcoin and make constructing a blockchain as simple and adaptable as possible. Substrate was built in a way that allows technological flexibility while also making functions like governance, smart contracts, accounts, and balances very simple to oversee.

Substrate made it very easy for StaFi to connect with Polkadot and further expand their network with the numerous benefits of utilizing the Polkadot network.

Stay connected with the StaFi project using the Links below:

Official Website |*| Telegram || Medium |*| Twitter