Crust talks: Is the parachain the next tipping point for Polkadot?

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Crust provides a decentralized storage network for the Web3 ecosystem, supports multiple storage layer protocols including IPFS, and provides interfaces to the application layer. Crust
's technology stack can also support a decentralized computing layer. Crust aims to build a distributed cloud ecosystem that values ​​data privacy and ownership.

This afternoon, the Crust Network team was a guest at the Polkadot Talk online roundtable event hosted by Beep News. Together with Phala and Patract Labs, they discussed whether parachains are Polkadot’s next on the theme of "Parachain Wealth Opportunities". Tipping point and other topics.

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The following is an excerpt from the Q&A by Youan, the head of Crust brand.

Moderator: What
is the current progress of the official and community regarding parachains? At present, the major teams are gearing up. Many teams have publicly stated that they will participate in the Polkadot Parachain slot auction, and many teams have also expressed that they will apply the integration to the Polkadot platform. How many teams are currently preparing for parachains? What preparations has your team made for the establishment or construction of parachains?

On October 26th, on the Demo Day of the Web3.0 training camp jointly sponsored by the Web3 Foundation and Wanxiang Blockchain, Gavin Wood stated that his team is stepping up the development of the parachain and hopes that the parachain 1.0 code It will be online in two weeks. At the same time, he also expressed his hope that the Rococo testnet based on this code can be released soon.

Since the Rococo testnet was released in September, seven teams have added parachains to it. As far as I know, several other teams in the Polkadot ecosystem are also actively preparing for this. For example, Acala, Bifrost, Chainx, and of course our Crust.

We have always been paying attention to and learning about parachain technology, and have entered the queuing sequence of the Rococo testnet last month. When the parachain is officially released, we will also learn and adapt as soon as possible. Work so that we can maintain real-time support for technology updates and prepare for access to parachains.

Moderator: The
next tipping point for Polkadot is the parachain. What do you think of this view? For the project party, what kind of wealth opportunity is the parachain?

I think everyone's expectations for this tipping point are very similar. Whether it is Polkadot, the project party, the community and the market, they all have high expectations for it. First of all, being able to have so much traffic and even capital attention, I think this is very conducive to the further consolidation and diffusion of consensus, so Polkadot and Polkadot ecology will also be constantly discovered based on the value it contains.

At the same time, I think it is a great opportunity and no small challenge for the project party.

The opportunity lies in the fact that we are based on the Substrate framework technically, which reduces a lot of development costs and time costs. Therefore, we only need to focus on the logic implementation and optimization of the business layer, which will have a higher success rate; in the market, we benefit from the entire wave The value of the card ecology, everyone is the same "value realization, application landing" style of work, and more and more projects have attracted the attention of the entire crypto market, so relatively speaking, there is no shortage of traffic and funds.

The challenge is that although Gavin has unquestionable technical strength, Polkadot’s goal is to link multiple dedicated blockchains to a new generation of blockchain protocols in a unified network. The development of such a common protocol is a synthesis of core developers. The ability requirements are extremely high. For the development team of our project team, this includes the cost of understanding and learning Polkadot, plus the business logic of each project is different, so the development of this layer The challenge is always there.

The other is the challenge faced by all blockchain project parties: how to combine their respective businesses to give the best solution to the "impossible triangle" of decentralization, security and performance. This is what we have been doing since the establishment of the project. Exploring.

For ordinary investors, in addition to holding DOT, what other investment opportunities are there under the topic of parachain? Ordinary investors may have the opportunity to participate in "PLO", how to select high-quality "PLO" projects? In addition, how to hold DOT to have a relatively more ideal return?

For ordinary investors, in addition to pledging DOT campaign slots for promising project parties, they are actively paying attention to the market activities of the project parties and participating in the incentive activities of project development to obtain token incentives from the project parties. For example, our Crust plans to launch an incentive testnet at the end of the year. Everyone can get CRU token rewards through the activities of the testnet.

Regarding how to select high-quality "PLO" projects, investors first need to confirm whether the project party has obtained an official grant. However, with the popularity of the Polkadot ecology, in addition to more developers entering the ecology, there will also be more bad intentions The project team of Boka is targeting Polkadot, so even if the official grant is obtained, it does not mean that the project team must be fine.

Therefore, when investors are screening, they must have an overall understanding of the fundamentals of the project, including but not limited to the project team, the investment institutions behind it, and market enthusiasm, because investment is a very comprehensive knowledge. It will not be expanded here.

For DOT holders, if the position is large, then both currency-based revenue and legal currency-based revenue must be considered. The legal currency standard can reduce risks through hedging and other methods. If the currency standard, it must be pledged according to the preferences of investors, participate in parachain auctions, and participate in exchange pledge activities for configuration.

At present, what do you think are excellent parachain projects? Parachain projects in which directions have a relatively higher probability of success?

Crust: I
personally think that Acala, Bitfrost, ChainX, Crust, Darwinia and Phala are all very good projects. As for the direction, of course the projects that occupy the market hot spots will be favored by more investors. For example, Crust is the lucky one. Because decentralized storage and the Polkadot ecology have become relatively hot recently, of course, this is also inseparable from our pursuit of value realization. The original intention of being able to implement applications is inseparable. This is why we chose to store this track.

Let's look at the projects recently approved for Polkadot's official Grant, among which DeFi projects have a higher proportion, which also confirms this statement.

But any hot spot will not last forever. No matter which direction you choose, as long as you stick to your original aspiration, do things steadily, and really work hard for the realization of value, you will naturally have good results.

Because Polkadot or related institutions have a relatively large amount of DOT chips in their hands and manipulate the market, will the Polkadot parachain cause bad coins to drive out good coins? What is your opinion on this?

Crust: The
so-called bad money drives out good money, that is, Gresham’s law. There is a major premise that bad money and good money have the same purchasing power, so everyone will hide good money at home and take bad money out to trade. Over time, bad coins are circulating in the market.

Let's look at the current crypto market again. The market value of BTC is the first and ETH is the second. This pattern has been going on for more than four years, and the entire crypto industry has only 12 years of history. The concept of ETH was only proposed in 2013.

In this market, bad coins can have a high purchasing power, but it is difficult to maintain this purchasing power. The vast majority of the indigenous people in this circle will exchange so-called altcoins into Bitcoin or Ethereum at a certain point in time. Mainstream currency, this is the embodiment of the value of good currency.

In Gresham's Law, the premise is that the ratio of legal value of bad money to good money remains unchanged. In society and life, because there is no incentive mechanism for good behaviors (good money), and no effective punishment mechanism for bad behaviors (bad money), there is a huge room for unfair profit.

However, the blockchain project party will carefully design a consensus mechanism, just like this constantly changing and extremely fast market. Except for BTC and ETH, the top ten projects in 2016 and the top ten projects in market value this year have almost all changed. Up. One is because of the emergence of a steady stream of new projects, and more because of the continuous formation and diffusion of consensus in the process of market changes. In the end, only good coins can survive.

Therefore, I think that neither the entire cryptocurrency market nor the Polkadot ecology will be expelled of good coins. Polkadot and Polkadot’s ecological projects will assign value to each other, and ecological projects will be mutually exclusive. There will be competition and cooperation, but in such an ecosystem of "doing things practically and realizing value", bad currencies will not only encounter market abandonment, but even encounter ecological abandonment.

About Crust Network

Crust provides a decentralized storage network for the Web3 ecosystem, supports multiple storage layer protocols including IPFS, and provides interfaces to the application layer. Crust's technology stack can also support a decentralized computing layer. Crust aims to build a distributed cloud ecosystem that values ​​data privacy and ownership.

The public testnet Maxwell CC2 is currently online, and the first phase of the incentive testnet "Ark Project" will be launched in late November. Welcome to join the test experience. Crust Network has successively joined the Substrate Builders Program, Web3.0 Bootcamp, and obtained the Grant from the Web3 Foundation.

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