Astar Network (ASTR): Shining Brightly With Scalable Interoperability

There are currently three large multi-chain ecosystems that dominate the blockchain world — Ethereum virtual machine (EVM) compatible chains, the Polkadot (DOT) parachain system and the network of Cosmos (ATOM) platforms. Each of these ecosystems comprises a variety of blockchain environments teeming with diverse decentralized applications (DApps), and the networks within each ecosystem exhibit a high degree of interoperability. 

Unfortunately, the interoperability between these large ecosystems is often rudimentary. As a result, DApp developers need to carefully preplan which of these ecosystems they’d like to commit to. Once they’ve locked into one, expanding to the others becomes challenging.

Realizing the presence of this problem, Japanese web3 entrepreneur Sota Watanabe founded a project in 2019 to develop a platform that would feature cross-ecosystem interoperability. This is how Astar Network (ASTR) was born. Astar is a blockchain that lets developers launch DApps compatible with both EVM and Polkadot/WebAssembly (Wasm) technology. Such DApps feature a high degree of interoperability with EVM-compatible chains, including Ethereum (ETH) and the parachains that belong to the Polkadot ecosystem.

Astar has already established itself as the leading public blockchain in Japan, with its team currently in the midst of releasing features for Astar 2.0, a major improvement to the original network. Astar 2.0 has already caught the attention of the crypto investor community: the platform’s native token, ASTR, has experienced a price jump of over 300% between late October 2023 and early January 2024.

Key Takeaways:

• Astar Network is a blockchain that acts as a development hub for DApps. It features a high degree of interoperability with both EVM-based networks and the Polkadot ecosystem’s chains.

• It’s among the largest parachains on the Polkadot platform, with over 500,000 users, and is also the leading public blockchain in Japan.

• Astar has developed a highly scalable Layer 2 solution for Ethereum-focused DApp development, Astar zkEVM, which is currently in testnet mode and is scheduled for mainnet release in early 2024.

What Is Astar Network?

Astar Network (ASTR) is a smart contract platform that acts as a hub for developing DApps compatible with both EVM environments and the Polkadot ecosystem. The interoperability, or rather the lack thereof, between Ethereum/EVM chains and Polkadot/Polkadot parachains is a significant issue in the sphere of blockchain development, and Astar is a unique project that tackles this problem head-on.

In addition to Ethereum’s blockchain itself, EVM — its virtual engine — is used by a range of other popular networks, including BNB Chain (BNB), Polygon (POL), Avalanche (AVAX) and Fantom (FTM). Thanks to their utilization of the same virtual machine environment, these blockchains feature a reasonably high degree of compatibility, making processes like DApp porting or smart contract adaptation to a new chain relatively easy.

Polkadot, another large ecosystem of blockchains, doesn’t use the EVM. As a result, its compatibility with Ethereum and other EVM-based networks is limited. Polkadot uses a central Relay Chain, which provides basic security and block validation services to the dozens of independent chains connected to it. These chains, called parachains, all utilize the Relay Chain’s security and block processing features, while using their own custom environments at the execution layer.

The Astar/Polkadot Nexus

There are dozens of parachains on Polkadot, and Astar Network is one of them. In fact, Astar is among the most popular parachains, with over 500,000 users. Within the Polkadot ecosystem, Astar currently leads by number ofW3F grants received. These grants are awarded to parachain projects that advance R&D in the field of decentralized protocol development.

Astar is built using Substrate, Polkadot’s blockchain development framework. It has a testnet environment, Shibuya, and a sister network, Shiden (SDN), which can be used as a “canary network” for pretesting Astar DApps. 

Unlike a testnet, a canary network is a full-fledged, independent blockchain whose architecture mirrors that of the main chain. Canary networks are more suitable than testnets for pretesting mission-critical apps in a completely open, public access mode.

How Does Astar Work?

The Astar blockchain’s smart contracts can be written in different languages, including Solidity, the language used within EVM chains, and Rust, the primary development language within the Polkadot ecosystem.

As a typical parachain, Astar doesn’t maintain its own validators, as all the block validation activities take place on Polkadot’s Relay Chain. The Relay Chain itself is based on the nominated proof of stake (NPoS) block validation model, in which a certain number of nominated validators process transaction blocks. Both the validators and those nominating them need to stake funds on the network. In contrast, with delegated proof of stake (DPoS) consensus, only the nominators or voters (but not delegators who are in charge of block validation) need to lock in the staking funds.

A block of transactions is finalized on Astar (or, technically speaking, on Relay Chain) every 12 seconds, a result that’s quite similar to Ethereum’s transaction finality time of 12 to 15 seconds. However, as we’ll see below, Astar has developed a solution that allows for highly scalable EVM-based processing.

Astar Network 2.0

Astar’s original mainnet was launched in 2022. In June 2023, the project announced plans for the gradual release of Astar 2.0, a core upgrade to the platform. Astar 2.0 represents a set of new tools and improved functionalities that hit the market starting in late 2023, with some other features still to be released in early 2024.

Among the key innovations offered by version 2.0 is Astar Link, a development technology that further improves the compatibility of Astar DApps with both the EVM and Polkadot ecosystems. Astar 1.0 had taken a major step by allowing developers to create flexible multichain DApps adaptable to both environments. Astar Link, released in October 2023, takes this adaptability to even higher levels.

Another key feature of the Astar 2.0 suite of products is Astar zkEVM, a Layer 2 scaling solution for Ethereum based on zero-knowledge proof technology. The complete set of all Astar 2.0 features will be released by early 2024.

Astar Network Key Features

XVM

XVM is among the most innovative features offered by Astar. This multi-VM (virtual machine) solution allows EVM and Wasm smart contracts to directly exchange data, despite the difference in formats between these two technologies. In essence, XVM combines different virtual machines into one VM environment.

Currently, XVM is available to developers on Shibuya, Astar’s test network. After a period of pretesting, XVM will arrive on Astar’s mainnet, most likely at some point in 2024. 

Cross-Chain Messaging (XCM)

XCM is another key feature supporting Astar’s cross-chain interoperability. It’s a messaging protocol for exchanging data and assets between chains with different consensus models. Using XCM, developers can create DApps that execute functions across different chains.

DApp Staking

DApp Staking, or Build2Earn, is a unique feature of Astar that lets blockchain app developers monetize their efforts. Within the Astar platform, users have the opportunity to stake their funds on specific DApps they would like to support. In a way, this is similar to how stakers allocate their funds to block validators, only in this case, the nominated entity is a DApp, not a validator node.

DApp staking provides important financial incentives to developers in order to help them innovate and build solutions on Astar.

Astar zkEVM

Astar zkEVM is a Layer 2 solution designed to offer a highly scalable network powering EVM-based DApps. Featuring considerably higher scalability than that of either Ethereum or Astar’s Polkadot-based core chain. zkEVM is part of Astar 2.0 and is currently in testnet mode. The platform’s mainnet is slated for launch in early 2024.

What Is the ASTR Token?

ASTR is Astar’s native cryptocurrency. It’s designed for several critical functions on the platform: staking tokens on DApps in the Build2Earn program, earning staking rewards and paying developers in ASTR tokens when their DApps are nominated within the program.

The token is also used to pay network fees. Treasury and community pool grants, two forms of funding that Astar Network provides to promising web3 development projects, are also paid out in ASTR.

The ASTR token has a total supply of around 8.3 billion, with about 5.5 billion in circulation and no maximum supply limitation. ASTR’s supply distribution shares are as follows:

• 30% — Users and early supporters

• 25% — Expenses and reserve funds for maintaining a parachain connection to Polkadot’s Relay Chain

• 10% — Protocol development

• 5% — Governance

• 5% — Marketing expenses

• 10% — Early investors

• 5% — Project team

• 10% — Astar Foundation

Astar Network (ASTR) Price Prediction

As of Jan 10, 2024, the ASTR token was trading at $0.1296, which is 62.35% lower than its all-time high of $0.42 attained on Jan 17, 2022, and 295.27% higher than its all-time low of $0.0327 registered on Oct 13, 2022.

ASTR experienced a price rally between late October 2023 and early January 2024, rising from $0.039 on Oct 20, 2023 to a local high of $0.17 on Jan 5, 2024, a growth rate of 335%. The token has now retreated from these highs, but remains among the best performers in the market.

Long-term forecasts for ASTR are all on the bullish side. PricePrediction expects the token to trade at $0.34 in 2025 and $2.28 in 2030, while DigitalCoinPrice predicts it will reach $0.34 in 2025 and $0.99 in 2030.

Is Astar Network a Good Investment?

The ASTR token’s recent impressive rally has shone the spotlight on the Astar project, and the token is quickly shaping up as one of the most promising investment options in 2024. Here are some reasons why you might consider investing in ASTR:

1. Astar is a unique project that provides true interoperability between two of the largest blockchain ecosystems in the industry — EVM chains and Polkadot parachains. Few projects tackle this challenging issue, and Astar is the confident leader in this niche. The rollout of Astar 2.0, expected to be finalized in early 2024, will further fortify the platform’s position as the category leader.

2. The Astar zkEVM platform, expected to launch its mainnet early this year, will open up opportunities for developing highly scalable EVM-based DApps. Neither Ethereum nor the current Astar parachain can match this in terms of technical performance. Astar zkEVM is expected to provide a further boost to Astar and its ASTR token.

3. Already a high-profile blockchain project in Japan, Astar has established itself as that country’s leading public chain. The project continues to maintain a strong public profile in the Land of the Rising Sun, and has gotten involved in charitable work, contributing funds to relief efforts in the aftermath of the powerful earthquake that hit Japan on New Year’s Day 2024. 

The project’s charitable work and high public profile will likely help support its leadership position in the Japanese market — and this is a market well-known for businesses that don’t shy away from technological innovation. Such businesses represent a tremendous potential client base for Astar. With more enterprises and DApp operators utilizing Astar, the ASTR token stands to benefit significantly.

Naturally, before making your final investment decision, it’s important that you conduct thorough research on the ASTR token and consider its pros and cons as part of a comprehensive financial assessment.

Where to Buy Astar Network (ASTR)

Traders can buy ASTR on Bybit with a USDT Perpetual contract, which allows them to open long and short positions using USDT as the margin with no expiration dates. If you don’t have an account on Bybit, you can easily register for one and trade hundreds of cryptocurrencies, both in the Spot and Derivatives markets.

Closing Thoughts

As cross-chain DApps become more common, platforms that facilitate interoperability between different chains and ecosystems are becoming more important. Astar shines brilliantly in this niche. This is a platform whose reach spans two of the largest blockchain ecosystems: EVM chains and Polkadot parachains.

With the planned mainnet launch of Astar zkEVM, the Astar platform will further solidify its market position, adding exceptional scalability to its list of advantages. If you’re a cross-chain DApp developer or operator, you’ll be hard-pressed to find a more suitable hosting environment for your project than the Astar Network.

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