What is Astar Network

Astar Network is a Polkadot-based decentralized Applications hub and multi-chain smart contract platform. It supports numerous virtual machines, strong cross-chain interoperability, and novel features like dApp staking to simplify dApp development. Developers use Polkadot’s safe and scalable basis to connect Web3 ecosystems through Astar. It wants seamless Ethereum, Cosmos, and Solana integration.

Background and History

Astar Network was founded in January 2019 by blockchain industry leader Sota Watanabe, particularly in the Japanese Web3 community. Through Stake Technologies, a business based mostly in Japan but with its formal headquarters in Singapore, Watanabe and his committed staff are in charge of Astar’s development and upkeep. The project’s original name, Plasm Network, reflected its initial emphasis on Layer 2 scaling solutions based on plasma. In June 2021, a major complete rebranding to Astar Network was carried out in order to better reflect its larger goal as a multi-chain dApp hub. By successfully raising more than thirty-three million US dollars by May 2022, Astar has proven to have substantial financial support, securing its place as a significant project within the Polkadot ecosystem and the rapidly growing Web3.0 sector in general.

Why Astar Was Created

Addressing Polkadot’s Smart Contract Gap: Polkadot does not natively enable smart contracts on the Relay Chain itself, despite offering a safe and incredibly scalable framework for integrating many blockchains (its Relay Chain). With its extensive smart contract capability as a specialised parachain on Polkadot, Astar was developed especially to close this important gap and enable developers to design sophisticated applications that take use of Polkadot’s underlying security.

Focus on Layer 2 Scaling: Initially and continuously, it concentrated on creating and growing Layer 2 scaling solutions for Polkadot. This objective has been effectively accomplished, and Astar keeps coming up with new ideas to improve efficiency and throughput.

Improving Efficiency for Developers: Astar wants to greatly increase developers’ efficiency in terms of transaction speed and cost. Astar offers a platform made to lower operating costs for decentralised apps in increasingly congested and cutthroat blockchain settings.

Key Features and Functionality

Multi-Virtual Machine (VM) Support:

This is a distinctive and potent quality of Astar that supports both:

• EVM (Ethereum Virtual Machine): Developers can easily convert from Ethereum-based dApps to Astar and Solidity-based smart contracts. This lowers the entry barrier for Polkadot’s ecosystem for the enormous Ethereum development community.
• Wasm (WebAssembly): This makes it possible to create smart contracts that are more effective, high-performing, and future-proof. Popular and reliable programming languages like C++, C#, and Rust give developers more freedom and optimization possibilities. On the Astar network, developers have the rare ability to create using either Wasm or EVM, or even both.

Cross-Chain Interoperability: Astar is built for a multi-chain future:

• Using Polkadot’s XCMP protocol, Astar may easily transfer assets and data with other parachains, creating a connected ecosystem.
• Polkadot’s tight integration with third-party blockchains like Ethereum lets data and assets safely cross ecosystems, boosting its reach. Astar joins with Cosmos and Solana to expand.
• An essential internal element of Astar is the Cross-Virtual Machine (XVM), which facilitates smooth communication and interoperability between EVM and WASM smart contracts on its own network. This enables developers to take advantage of the advantages of both environments in a single dApp.

dApp Staking / #Build2Earn: This incentive scheme is distinctive, creative, and very alluring; it was created to balance the interests of creators and the community.

• By staking their ASTR tokens on particular dApps or infrastructure initiatives that they want to support and believe in, users can take an active role.
• In exchange, users and developers gain from network inflation. This novel method encourages developers to produce essential, high-quality dApps, communicate with their community, and maintain their projects by providing a stable and integrated cash source from the protocol.

Scalability & Low Fees: Astar provides a high-performance environment by utilizing advanced scaling solutions:

• Astar offers high transaction rates and substantially cheaper costs than many monolithic blockchains by utilising Polkadot’s sharded design, which allows transactions to be executed in parallel over several parachains.
• Astar functions as a Layer 1 as well as a Layer 2 solution. The Polkadot Relay Chain’s strong shared security protects Substrate, which is the foundation of the core Astar blockchain, which functions as a Layer 1.
• A Layer 2 zkEVM (zero-knowledge Ethereum Virtual Machine) solution developed with Polygon CDK (Chain Development Kit) technology is now being integrated by Astar. With the use of zero-knowledge proofs, this innovative method seeks to greatly improve the scalability and privacy of smart contracts that are compatible with Ethereum, allowing for quicker and less expensive transactions.
• In order to further minimise costs and congestion, it also makes use of additional Layer 2 technologies, with plans to support and optimise using the Optimistic Virtual Machine (OVM). Astar’s dedication to ongoing scalability is demonstrated by the further optimisations that can be made in the future using the Plasma and ZKRollup functions.

Developer-Friendly:

Building a thriving developer ecosystem is a top priority for Astar. It helps developers start their projects quickly and easily by offering complete Software Development Kits (SDKs), copious documentation, and a strong awards program. In addition to granting developers a base income and extra grants as part of dApp staking, the special #Build2Earn initiative offers ongoing assistance after first investment.

ASTR Token

Native Utility and Governance Token: The Astar Network’s native utility and governance token, ASTR, is essential to its functionality and development.

Primary Uses: Its principal applications consist of:

• Paying the network’s transaction and smart contract execution costs (gas).
• Staking on dApps using the dApp staking mechanism and to support validators to safeguard the network.
• Governance, which enables ASTR holders to vote on important ideas, protocol updates, and strategic choices, thereby actively influencing the network’s destiny.
• Offering rewards to users that take part in network security and dApp support, as well as incentives for developers through dApp staking and other ecosystem initiatives.

Tokenomics:

The tokenomics of Astar have been carefully developed to support value accrual and long-term sustainability. In order to achieve predictable scarcity, the network is moving towards a fixed supply objective of roughly 10.5 billion ASTR tokens. Important elements consist of:

• Fee Burning: Deflationary pressure is created when a sizable portion (for example, 50%) of the transaction fees made on the network are burned, permanently removing ASTR from circulation.
• Protocol-Owned Liquidity (POL): In order to oversee liquidity pools across numerous decentralized exchanges, Astar is actively developing its own treasury. By ensuring deep liquidity for ASTR and other ecosystem assets, this approach seeks to lessen need on outside liquidity sources. To guarantee its long-term spot, POL also allows Astar to take part directly in Polkadot’s important parachain auctions.
• Dynamic Inflation: In order to maximise security and encourage desired behaviours while controlling supply, token emissions are made to dynamically adapt to network activity and the degree of staking participation.
• With an annual inflation rate of roughly 665,000,000 ASTR, the starting supply was 7,000,000,000 ASTR. In order to ensure balanced growth, a sizable percentage of this supply is allotted for users, parachain auctions, protocol development, and widespread ecosystem incentives.

Advantages of Astar Network

Multi-chain Connectivity: As a vital link for Web3 interoperability, Astar is exceptional at connecting to external blockchains like Ethereum, Cosmos, and Solana in addition to the Polkadot ecosystem (other parachains).

EVM and Wasm Support: Its exceptional dual support for WebAssembly and EVM smart contracts offers developers unmatched versatility, meeting a variety of programming languages and optimisation requirements while drawing in a larger developer community.

Unique dApp Staking Model: Both developers (by providing a steady revenue stream) and users (by offering incentives and assisting worthwhile projects) gain directly from the creative #Build2Earn dApp staking concept.

Fast, Scalable, and Secure: Astar provides scalable, highly performant transactions with substantially lower costs by utilizing Polkadot’s sharded architecture in conjunction with its own Layer 2 solutions, such as zkEVM (developed with Polygon CDK), while also retaining Polkadot’s strong shared security.

Strong Developer Focus: Astar creates a friendly and encouraging atmosphere for developers to create and release dApps by offering a wealth of tools, including as SDKs, thorough documentation, grants, and the #Build2Earn program.

Simplified dApp Creation: The platform simplifies dApp creation and implementation by enabling many virtual machines and programming languages, meeting developer preferences and project demands.

Challenges of Astar Network

Intense Competition: Other well-known smart contract parachains in the Polkadot ecosystem, such as Moonbeam, which also provides EVM compatibility, and numerous external Layer 1 smart contract platforms, including Avalanche, Solana, Near, and Polygon, compete fiercely with Astar for the adoption of developers and users.

Reliance on Polkadot’s Growth: Long-term success for Astar is inextricably related to the Polkadot ecosystem’s general expansion and uptake. Polkadot’s future course is largely dependent on the growing demand for its safe and compatible multi-chain applications.

Wasm Adoption Maturity: WebAssembly (Wasm) has a lot of technological advantages, but compared to the dominant EVM environment, its popularity in the larger blockchain developer community is still in its infancy. This implies that Astar must aggressively promote and inform developers about Wasm’s advantages.

Astar’s Role in the Polkadot Ecosystem

Parachain Integration: Astar operates as a core parachain on Polkadot Relay Chain because it leased a slot. This integration is significant because it allows Astar rapid access to Polkadot’s robust shared security model and simple interoperability with all linked parachains, establishing a cohesive network.

Smart Contract Specialization: Through its Relay Chain, Polkadot offers the fundamental security and multi-chain infrastructure, but it doesn’t carry out smart contract execution directly. As Polkadot’s main dApp hub, Astar is a specialised blockchain that specifically delivers extensive smart contract functionality (both EVM and Wasm) by utilising Polkadot’s features.

Astar vs. Acala: Despite being important and well-known parachains on Polkadot, Astar and Acala have different strategic goals:

• Acala’s primary focus is Decentralized Finance (DeFi), with the goal of becoming Polkadot’s financial and liquidity hub. It provides an Automated Market Maker (AMM) Decentralized Exchange (DEX), liquid staking derivatives (LDOT for DOT staking), and its own stablecoin (aUSD).
• On the other hand, Astar concentrates on being a general-purpose smart contract platform that works with both WASM and EVM settings. Its objective is to draw in a variety of dApps, such as enterprise solutions, gaming, NFTs, and DeFi. One of the main incentives intended to draw and keep developers from these many industries is its distinctive dApp staking system (#Build2Earn).

Ecosystem and Partnerships

Astar Network has attracted many dApps, infrastructure suppliers, and strategic collaborations, notably with well-established firms, by aggressively cultivating and developing its ecosystem.

Toyota Hackathon: One noteworthy partnership is Astar providing the blockchain technology for a significant hackathon supported by the multinational automaker Toyota. With over 420 applications, this event generated a lot of attention and showed how popular Astar is with mainstream businesses.

Sony Incubation Program: By working with Sony Network Communications on a Web3 incubation initiative, the Astar Foundation demonstrated its dedication to promoting innovation and its solid relationships with top Japanese technology businesses.

Enterprise Integrations: In addition to collaborating with safe platforms like Fireblocks a digital asset custody, transfer, and settlement platform and supporting popular hardware wallets for added security, Astar is actively working on integrating powerful Web3 tooling for consumers and enterprises.

Leading Public Blockchain in Japan: Having established solid and strategic alliances with significant Japanese companies like Sony, NTT Docomo, and Toyota, Astar is well known as a leading public blockchain in Japan and is actively promoting Web3 use in a crucial technological economy.

Examples of dApps: Numerous well-known dApps, such as ArthSwap (a top Decentralized Exchange), AstridDAO (a DeFi platform providing stablecoin solutions), and Astar Degens (an NFT-based community VC DAO), are part of the expanding ecosystem on Astar, demonstrating the variety of applications being developed.

Goals and Future

For developers and established companies looking to join and prosper in the Polkadot ecosystem, Astar Network wants to be the ideal entry point. Its main goal is to greatly simplify the development and implementation of safe, scalable, and interoperable decentralized apps for the rapidly developing Web3 future.

Connecting Businesses with Developers: One of its primary strategic objectives is to accelerate enterprise Web3 adoption by establishing meaningful partnerships and collaborations that directly connect traditional enterprises with the decentralised developer community.

Astar Evolution: The next significant milestone and stage of the network’s ambitious upgrades, Astar Evolution, is being developed under the active direction of the Astar Foundation and promises ongoing innovation and improved capabilities.

Decentralized Governance: To ensure community-led growth and decision-making, the project’s governance will gradually decentralize, eventually becoming a fully functional Decentralized Autonomous Organization (DAO) with direct on-chain voting by ASTR token holders.

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