Astar Blockchain Development

What is Astar?

Polkadot does not inherently support smart contracts, necessitating the use of parachains to offer this capability to projects on its network. One such parachain is Astar Network.

This multi-chain platform creates decentralized ecosystems that enable smart contract functionality and facilitates the seamless exchange of assets and messages across Polkadot, Ethereum, and Cosmos. Astar empowers developers to build decentralized applications (dApps) and interact with Layer 1 blockchains, addressing scalability challenges that dApp developers commonly encounter. The platform promises high throughput and minimal transaction fees.

History of Astar

In 2019, Stake Technologies, a company based in Singapore, launched the Plasm Network project. In September 2021, the platform underwent a rebranding and became known as Astar Network. The ASTR cryptocurrency made its debut in January 2022, coinciding with its listings on exchanges such as Huobi, OKX, and KuCoin. By the end of January 2022, the company successfully raised $22 million in venture capital, with investors including Polychain, Alameda Research, and Alchemy Ventures. The project also enjoys support from prominent players in the blockchain sector, such as Binance Labs, Coincheck, and Coinbase Ventures. In March 2022, Astar Network became part of the Acala Ecosystem Program, collaborating with other Polkadot parachains and venture partners.

Astar has gained significant popularity in Japan. In April 2023, the Japan Virtual Currency Exchange Association (JVCEA) included the asset on its “green list,” facilitating the coin’s adoption in the country.

Astar Network is integrated within the Polkadot ecosystem and constructed using the Substrate blockchain framework. While it maintains its own ecosystem and operational logic, it can communicate with other platforms through the validators of the main chain.

The project is EVM-compatible, allowing Ethereum developers to deploy dApps on Astar or utilize existing ones without modifying their code. This eliminates the need to learn a new programming language, ensuring that dApps remain interoperable within the broader Polkadot ecosystem. Astar functions as a bridge between these networks.

Additionally, EVM compatibility enables the integration of ERC-20 tokens (such as USDC, USDT, LINK) into the Astar platform. Conversely, assets from Astar can also be transferred to Ethereum. Looking ahead, the ecosystem is expected to interact with other EVM-compatible blockchains like BSC, Avalanche, and Polygon.

The project offers various modules that support not only dApp creation but also the use of Layer 2 protocols. It includes support for the Optimistic Virtual Machine (OVM), which allows any decentralized application to operate smoothly within a unified environment. Through OVM, developers can tailor their projects and link them to the Astar base layer using zero-knowledge technology (ZK). The platform’s theoretical maximum throughput is 1,000 transactions per second, although it may process fewer transactions per second than Polkadot due to the requirement for transactions to be verified by collection nodes before reaching the relay chain validators for final confirmation.

The Astar platform features its own Cross-Virtual Machine (XVM), which is compatible with both EVM and WASM. This allows applications developed in different programming languages to interact seamlessly. The development team has introduced several innovative concepts within the ecosystem.

In addition to functioning on Layer 1, the smart contract platform also implements an L2 protocol. In September 2023, Astar introduced zkEVM in partnership with Polygon Labs. This Ethereum scaling solution is built on a modular open-source framework known as CDK.

Build2Earn

On other blockchains, developers of decentralized applications (dApps) often need to seek grants or secure funding, and they face high network fees. Astar offers an alternative through its Build2Earn financial incentive program, also known as dApp staking, which allows developers to earn tokens for their contributions.

Anyone can submit an application to the platform, but certain criteria must be met:

• The application must be operational on the Astar Network.
• The project should be listed on DefilLama and DappRadar.
• The GitHub repository must include the tags #astar-network and #dAppStaking.

If these conditions are satisfied, the developer can proceed through the following four steps:

• Create a proposal on the forum.
• Await community review; once discussions conclude, a voting period will commence.
• If the vote is favorable, the developer must provide a native substrate address containing at least 1001 ASTR and a verified smart contract for the application.
• Once whitelisted, the user can publish the project on the dApps page.

Approximately 42.4% of the block reward (around 107.3 ASTR) is designated for this initiative. A portion of this reward goes to operators (developers), while the remainder is allocated to nominees.

Use Cases of the Asset

The applications of the asset include:

Rewards: Validators earn native tokens for staking, while nominees are rewarded for developing applications.

Transaction Fees: The cryptocurrency is utilized to cover transaction fees.

Decentralized Governance: Astar promotes a governance model rooted in decentralization, allowing token holders to influence the project’s future direction.

The cryptocurrency operates on the Nominated Proof-of-Stake consensus mechanism and cannot be mined. Investors can acquire the token through exchanges. Token holders can engage in various incentive programs, participate in DAO voting, and stake their assets. The cryptocurrency serves to encourage activity within the ecosystem. Participants interacting with the platform can earn rewards in Astar tokens.

There are two primary ways to earn:

Developing Decentralized Applications: Creating dApps on the network.

Staking: Participating in staking activities.

Future and Prospects of ASTR

ASTR is one of the foremost blockchain projects in Japan. According to research by the Japan Blockchain Association (JBA), it has garnered significant popularity within the Web3 community. The platform was also awarded “2022 Product of the Year” at the 4th annual Blockchain Awards, and its founder and CEO, Sota Watanabe, received the title of “Person of the Year.” Moreover, he was featured in the Forbes 30 Under 30 Asia list, recognized as one of the country’s top entrepreneurs.

Astar has emerged as a leader in advancing Web3 technologies in Japan. In recent years, representatives from Astar have forged numerous partnerships with well-known brands, including NTT Docomo, Sony, and Polygon Labs. Additionally, many prominent Japanese artists are launching NFT collections on the platform, while the cities of Fukuoka and Sendai are integrating local entrepreneurs into the network.

As a promising initiative, Astar has positioned itself as a key player in the blockchain sector. The extensive list of sponsors and partners highlights the active adoption of multichains and smart contracts across various platforms.