Overview of Moonbeam
There are quite a number of use cases of Moonbean in the blockchain space. However, before we get on with that, let us explore the concept of Moonbean. It is a developer-oriented blockchain network that aims to offer compatibility with already existing Ethereum protocol. We can also define Moonbean as the Polkadot smart contract system that makes it easy for developers to build native blockchain applications. The Moonbean features ensure that these native blockchain applications are interoperable.
The Moonbeam project was launched in January 2020 with the aim to solve cross-chain interoperability challenges. The platform offers a simpler approach for deploying apps on Polkadot with the use of a smart contract. Moonbeam smart contract network lies between Ethereum and Polkadot, thus increasing cross-chain interoperability.
Also, Balancer’s programmable liquidity is deploying on the Moonbeam protocol. This is a move that would add an important capability to the rising DeFi ecosystem on Moonbeam. However, the deployment on Moonbeam will serve as part of the broader story on the Polkadot ecosystem.
The Use Cases of Moonbeam
There are many ways to deploy the Moonbeam smart contract network, and they include:
- It is used to deploy Solidity Smart Contracts and dApps Frontends
As a developer-focused blockchain network, it is highly compatible with the Ethereum developer toolchain and network. Moonbeam provides additional features aside from the full Ethereum virtual machine (EVM) implementation. Some of these features include publish-subscribe functionalities, and it is also compatible with Ethereum addresses. These functionalities make it possible for developers to deploy Solidity smart contracts as well as dApps frontends to the Moonbeam. The most interesting aspect of this deployment is that it is done with almost zero changes to the network.
- Deployment of apps to Polkadot
In its quest to solve the cross-chain interoperability issues between different networks, Moonbeam offers a simpler way to deploy apps on Polkadot. Through the use of its smart contract functionality, it is easy for developers to build applications on Polkadot.
- Transaction and Payment Capabilities
The Moonbean utility token is used to pay for gas fees and transaction fees. The token also allows users to be part of staking and platform governance. It means that without the utility token, users cannot transact or perform any activity on the Moonbeam network.
- Moonbeam serves as a new frontier for Ethereum projects
Already existing Ethereum projects can leverage the opportunity offered by Moonbeam to seek a multi-chain strategy. It gives these Ethereum projects access to the growing users and tokens already growing in the Polkadot ecosystem. Therefore, Moonbeam helps projects execute on a multi-chain deployment strategy. It gives these new Ethereum projects access to new and emerging markets. Also, these projects can take advantage of their already existing Ethereum codebase to be executed on the Polkadot network.
As more functionality is added to the network, the use cases of Moonbeam will also increase. There are certain projects and uses cases that are very challenging to monetize on the Ethereum network. Moonbeam will be a viable alternative for such projects. A good example of such projects is non-fungible tokens (NFTs) with variable values.
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