Parity Technologies Proposes Common Goods Parachain on Polkadot Called Statemint

Polkadot developer Parity Technologies is looking to address one of the key issues plaguing the Polkadot ecosystem by launching a new asset deployment platform.

Statemint To Address ‘Free Ride Problem’

Parity Technologies said in an announcement that it is looking to launch a generic asset parachain called Statemint. This solution will be the first common-good chain on the Polkadot network.

Statemint will allow developers to deploy assets- from tokenized artwork to stablecoins and central bank digital currencies (CBDCs) – in the Polkadot and Kusama networks. This will naturally engender a better user experience and lower fees than present solutions.

Currently, both the Polkadot and Kusama’s on-chain governance grants parachain slots through a public referendum rather than selecting slot winners through its auction mechanisms. The auction method is insufficient as it doesn't efficiently distribute network resources on the platform.

Developers looking to ensure an even distribution of network resources will have to put up collateral in the form of Polkadot’s DOT or Kusama’s KSM network token. This collateral must have a minimum deposit, and if the asset falls below its “Existential Deposit,” the parachain will be removed to avoid a pile-up of low-value “dust” accounts.

But parachains may still be launched without an upfront collateral balance if the Relay Chain Council decides otherwise.

Parachains would also not be used as verification tools. The issuer must guarantee the authenticity of their asset value, not Polkadot (DOT)- but these chains will still be able to leverage Polkadot’s core functionality for continued interoperability.

Per the announcement, Statemint will enable developers to establish a maintenance team for their different parachains. This team will consist of an issuer, an administrator, and a freezer whose job will be to pause all token issuance and transfer.

The team, however, did not state when the project will commence.

Statemint Will Be Under DOT Token Holders’ Control

Relay Chain, which is the heart of the Polkadot ecosystem, will still retain control of the Statemint project. Relay Chain token holders will still be able to dictate the community's direction by determining changing parameters for the Statemint project. They will be able to register new assets, adjust fee parameters, and upgrade the chain’s logic and functionality.

Polkadot has quickly established itself as a top Ethereum rival in less than five years. The blockchain platform, a fully scalable, heterogeneous network, is dubbed the next-generation of blockchain, and its layer-0 protocol brings together multiple blockchains into a unified ecosystem.

The ‘Ethereum killer,’ focused on creating an interoperable ecosystem, deployed a heterogeneous sharding technology that allows its parachains to connect and communicate with external networks. This implies that Polkadot developers will transfer and receive data from Bitcoin and Ethereum through its bridges protocol.

With developers flocking into the ecosystem, investors are eyeing the project, and industry experts are projecting a top-three finish for its cryptocurrency DOT. Polkadot (DOT) currently occupies the sixth position on the cryptocurrency chart and has a market cap of $35 billion.

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide