The crypto sector is rapidly evolving, and the success of protocols depends on their ability to forge strong partnerships with others. Access to new markets is one of the main benefits of business partnerships. Blockchain companies can reach new customers to expand their market share, which can be beneficial, especially for startups. Business partnerships can foster innovation and collaboration to create innovative products. Partnerships also improve the credibility of a company, especially when partnering with established businesses.
Polkadot has gained significant traction in recent years due to the emergence of multiple partnerships and projects. It has attracted diverse projects, including DeFi protocols like Acala and Ethereum-compatible platforms like Moonbeam. Strategic partnerships with prominent infrastructure providers have further enhanced its reputation. This article will explore various strategic partnerships and collaborations of Polkadot that make it a significant crypto protocol.
Polkadot Strategic Partnerships
Polkadot depends on multiple partners for some of its vital daily operations. Gavin Wood, creator of Polkadot, has a partnership with Parity Technologies to build the Polkadot ecosystem. Zodia Custody, a crypto storage provider, has partnered with Parity Technologies to provide institutional support for the Polkadot network. This partnership will offer custody services for Polkadot, focussing on crypto asset storage for the financial sector. Polkadot has partnered with Chainlink to bring decentralized oracles to its ecosystem. Chainlink aims to become the primary oracle provider for the Polkadot blockchain. Polkadot developers can use decentralized Oracle networks to connect with their Smart contracts without delays or additional expenses.
Read More: What Is Polkadot
Collaboration with Other Blockchain Projects
Kusuma
Polkadot has collaborated with other crypto projects to build innovative products and services. Kusma is the sister chain of the Polkadot network and is used to test early-stage deployments and experimental development. It provides testnet conditions while serving as the ecosystem for innovations. Kusama is marketed as a canary network as it supports early unaudited code releases before they appear on the Polkadot network. Many decentralized applications (dApps) are emerging on the Kusama network for testing before deploying to the main network.
Kusama duplicates most of Polkadot’s distinctive design, but developers have more freedom with Kusama when finalizing their blockchain architecture. Kusama also works considerably more quickly than Polkadot, as it takes only seven days to vote on a choice and eight days to implement the changes. Kusama has lower economic entry hurdles than Polkadot, making it considerably simpler to start a unique para chain and become a validator due to the low minimum staking requirements.
Acala
Polkadot innovation hub Astar Network has partnered with leading DeFi protocol Acala to boost DeFi on Polkadot. Two major para-chains have collaborated to launch the Astar x Acala DeFi Rising program to unlock new opportunities and rewards for crypto developers. Acala offers innovative financial products that serve the Polkadot network and are vital to the thriving dApps ecosystem on Astar. The collaboration allows developers to build Astar into a vibrant DeFi ecosystem using Acala’s assets, such as aUSD, LDOT, and ACA while receiving additional rewards from several Astar ecosystem teams.
Moonbeam
Another vital collaboration is with Moonbeam to improve blockchain interoperability. It combines the functionality of many blockchains and makes them available to its developers. Connected applications using Smart contracts built on Moonbeam can leverage features from Ethereum, Avalanche, and Polkadot. Moonbeam supports Polkadot’s XCM as a messaging tool. It also supports cross-chain communication systems such as Axelar, LayerZero, and deBridge. It is an ideal platform for dApp developers who use different crypto assets and applications across chains.
Enterprise Adoption
Polkadot has also managed to forge some key industry partnerships. One such partnership is with ChainX. It aims to become the top Layer 2 Bitcoin network by providing lower fees, faster Bitcoin transaction speeds, and access to DeFi on Polkadot. It bridges Bitcoin into a wrapped token, XBTC, to open up the possibility of using XBTC anywhere in the Polkadot Ecosystem. It paves the way for Bitcoin DeFi and gives Polkadot access to the most valuable crypto.
Polkadot has partnered with Energy Web, one of the largest communities of enterprises using open-source and decentralized technology to advance the energy revolution. This collaboration will help Energy Web build the foundation for a new technology, Energy Web X. It will help its partners, which include Shell, Vodafone, and Volkswagen, accelerate their decarbonization initiatives.
Developer Community and Infrastructure Partnerships
The Polkadot network also has many partners to build and maintain its infrastructure. Substrate is the core blockchain software development kit (SDK) that developers use to create the parachains on the Polkadot network. It allows developers to build specialized blockchains for multiple use cases. It was also used by Parity Technologies to build Polkadot, demonstrating its high levels of performance and robustness. The Substrate language can be used to create any blockchain type, but connecting to the Polkadot network provides many advantages, such as built-in security, cross-chain interoperability, and access to an expanding ecosystem of applications and users. Building a blockchain with Substrate offers more freedom, flexibility, and optimization than using a general-purpose Smart contract protocol.
Polkadot also supports users who want to organize hackathon events to get more developers to understand the Polkadot ecosystem. They provide technical resources and also offer workshops about technology. Hackathon events consist of participants demonstrating their ideas into reality and delivering a prototype in a short period. Some prominent hackathon events include a nine-week Polkadot Buildathon in India and the Hello World event celebrating the collaboration of Polkadot and Kusama.
Conclusion
The Polkadot ecosystem has grown significantly in recent years due to its strategic partnerships and collaborations. It has attracted many projects, from DeFi hubs like Acala to Ethereum-compatible platforms like Moonbeam. Furthermore, strategic alliances with key initiatives and infrastructure providers have expanded its ecosystem. As Polkadot evolves, it will play a crucial role in influencing the future of DeFi and blockchain technology.
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