Polkadot Overview
Polkadot is a next generation L1 network that focuses on interoperability and defines a mechanism for different blockchains to communicate while maintaining separate state-transition functions.
This potentially allows separate, isolated blockchains to be linked together, forming a sort of “internet of blockchains”, where private chains can be firewalled from public chains like Ethereum. However, these chains can still communicate with each other via pre-defined state-transition functions, similar to the internet handshake protocols used today to establish networking.
Polkadot Advantages
The Reef team chose Polkadot for its many advantages including the following:
- True Interoperability: We plan on making Reef the first cross-chain DeFi yield engine and liquidity aggregator. Polkadot’s unique architecture compartmentalizing “canonicality” and “validity” allows many divergent consensus protocols, open and closed networks to achieve interoperability, including between centralized liquidity providers and decentralized liquidity providers.
- Flexible and Open Source Underlying Architecture: Polkadot is powered by Substrate, a fully open source infrastructure project that can be used to build Polkadot compatible blockchains. Some of the more advanced features of the Reef Protocol might require a custom state-transition function, thus having the option to create a custom Polkadot compatible chain is critical.
- Economic and Transactional Scalability: Polkadot is built to be scalable from the ground up, compared to first generation Smart Contract platforms such as Ethereum 1.0 that has experienced severe network congestion issues, causing security vulnerabilities and irregular market behaviors. Reef also wants to leverage a highly scalable network so that gas fees can be kept to a minimum and not eat into the profitability of users’ yield farming or staking.
- Decentralized Governance: Polkadot’s governance system is a DAO where all stakeholders have a voice. Upgrades to the network are coordinated on-chain and enacted autonomously, ensuring that Polkadot’s development reflects the values of the community and avoids stagnation. This is compatible with Reef’s decentralized, stake-based governance, and prevents there being any security risks from centralization.
We have chosen Polkadot due to its interoperability, underlying architecture, scalability and decentralized governance and plan on helping DeFi reach mainstream adoption through our unique user friendly platform which provides ease of on-boarding and maximum profitability for its users. Join us in our journey by following us on Twitter at @ReefDeFi.
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Powered by Polkadot, Reef integrates both CEXes and DEXes, providing increased liquidity for all cryptocurrency asset traders and managers.
Reef’s core team consists of serial entrepreneurs and blockchain veterans who have tremendous experience and proven track record in finance, cryptography, blockchain, and engineering.
For more information about Reef, or to join our team, please contact us at info@reef.finance
Learn about Reef’s recent official news: Twitter: @ReefDeFi and Telegram: https://t.me/reefdefi.
