Polkadot is a multi-chain protocol that connects and secures a network of specialized blockchains. It facilitates cross-chain engagement and allows blockchains to interact with one another. It is a base for what we now know as Web3.
Creating a blockchain from scratch and securing it is one of the toughest jobs in crypto. But Polkadot has the answer to this pain point: build your own L1 and benefit from a shared security system.
Polkadot is essentially saying: if you want to build an L1 and start a new ecosystem, you can build it on Polkadot. The unique ecosystems built on Polkadot are known as parachains.
So, what is Moonbeam?
Moonbeam is a Layer 1 blockchain that aims to replicate Ethereum on the Polkadot ecosystem. Moonbeam will become the bridge between Ethereum and Polkadot. If successful, all the apps you love that are built on Ethereum will be available on Polkadot.
How does it work?
Moonbeam uses a product called ChainBridge to create a bridge between Moonbeam and Ethereum. This allows the two chains to communicate with each other and enables the transfer of assets back and forth. ChainBridge allows the bridging of both tokens and NFTs.
What are the Tokenomics of GLMR?
GLMR (like many parachain native tokens) is the blockchain’s utility and governance token. It’s the fuel that powers the Moonbeam engine. GLMR can be used for transactions and fees, network security, and voting on proposals and elections.
There’s no doubt Moonbeam and parachains, in general, are a very interesting element introduced to crypto in the past year. What the future holds, no one knows for sure, but we do have our theories.
