Moonbeam launch paves the way for Ethereum Smart Contracts on Polkadot

Moonbeam is launching on Parity’s Substrate framework. Designed as a smart contract chain for A pois, the platform works like a parachain, giving smart contract developers a way to run applications on the Polkadot network.

Moonbeam as a solution to Ethereum’s scaling problems

Moonbeam is also compatible with Ethereum’s smart contracts, which means that builders will have the ability to potentially move their projects to Polkadot.

Ethereum is known for its ingrained network effects, bragging one of the strongest developer communities in cryptocurrency. Unfortunately, scaling issues have hampered the network in recent times, gaining criticism of Ethereum.

These scaling problems lead to high gas taxes which make it costly to use or run an application on the network. This summer, the taxes were so high that some companies had to close because they could not recover the costs.

While hopefully some level 2 solutions and pending Ethereum 2.0 update will improve network efficiency, a viable solution may be years away.

Moonbeam hopes to solve some of Ethereum’s problems by offering builders a platform to comfortably build on Polkadot. Moonbeam said that:

“Developers can easily port their existing application code for distribution on the cheapest and directly governable Moonbeam platform.”

It is also said to be interoperable with Bitcoin, which means that BTC holders can use the cryptocurrency on Moonbeam in the future.

While Moonbeam’s primary use case is executing smart contracts, the chain could also carry other DeFi elements such as oracles such as Chain is Band protocol in Polkadot.

The project recently received a concession from the Web3 foundation to continue financing development.