The pseudonymous host of Coin Bureau, a cryptocurrency strategist simply known as Guy, shared with his over 500,000 subscribers on YouTube his top three projects built on top of the Polkadot (DOT) network with growing potential.
In the video, Guy pointed out he is keeping an eye on these three projects as these could soon become parachains, which are reportedly Polkadot-powered blockchains with a higher transaction throughput than the Ethereum blockchain.
Polkadot, it’s worth noting, was founded by Ethereum co-founder Gavin Wood and its main chain does not support smart contracts. Its main chain, called the relay chain, has permanent transactions, and user-created networks called the parachains. These can be customized for any numbers of uses and benefit from the security of the main blockchain.
In his video, Guy explained Polkadot gets its smart contract functionality from parachains. He added only 100 parachain slots are available on the relay chain, making the process of attaining one a competitive one.
One of the projects the crypto analyst pointed to, as Daily Hodl reports, is the Acala Network. Per his words, it has the best chance of securing a parachain and is “one of the few Polkadot projects Gavin Wood follows on Twitter.” He added it brands itself “as Polkadot’s decentralized finance hub.”
Acala’s governance token isn’t set to launch until the project has a parachains, but DOT holders can loan their tokens to the project during the parachains auction and gain rewards in Acala’s token in the future.
Another Polkadot project he mentioned was Phala Network, which has an Ethereum-based version of its PHA token. Phala Network was founded in 2018 by professionals with experience “at some of the world’s largest tech companies.” Phala is working on a privacy-preserving decentralized database with smart contract functionality. Guy warned he does not believe it’s as close to attaining a parachains as Acala is.
The final mentioned project was Litentry (LIT), which already has its token trading on several exchanges and has “close ties to Gavin Wood.” Guy said:
Litentry will make it possible to do things like gain gravitas in governance or build up a credit score that can be used to borrow with less collateral in a private and trustless manner.
Litentry, the crypto influencer explained, has more than one core product. One is the registrar protocol, which makes it possible to verify on-chain identities. Another one is an identity run time protocol, which allows users to link accounts across chains to link them to a single identity authentication app. He explained this will “make it possible to use on-chain identities for off-chain purposes.”
Featured image via Unsplash.
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.