Understanding the Features of Astar Network (ASTR)

Scalability and interoperability are the major concerns of blockchain users. The developers have introduced several protocols to overcome these problems. Polkadot and Kusama are the leading names in this category that use parachains to provide fast and efficient transactions.

Parachains are customizable portions of the main chain that deal with a particular project. Over the years, a number of innovative projects have been built on Polkadot. One of Polkadot’s parachains is dedicated to Astar Network.

What is Astar Network (ASTR)?

Astar is a Polkadot-based project that provides an interoperable and scalable environment for Web 3.0. The developers can build a range of decentralized applications using this platform. Astar Network also provides support for Ethereum Virtual Machine (EVM) and WASM virtual machines.

The developers can also use Layer 2 solutions like Plasma and zero-knowledge rollups on this platform. The developers can also use the cross-chain interoperability feature of this network to fetch information from different Web 3.0 applications. Polkadot’s existing infrastructure doesn’t support smart contracts.

So, Astar Network can fill this gap with its smart contract capability. It’s worth noting that Astar Network enables users to support several projects through dApp staking. It means Astar is working like an index with multiple companies listed on it. The investors can stake their ASTR tokens (buy shares of these companies) to earn passive income.

Why Astar Network is Important?

Scalability

The decentralized platforms lower transaction speed compared to their centralized counterparts. Moreover, they can store a limited amount of data in each block. Thus, users often have to wait for a long to process their transactions.

However, Astar Network can process a higher number of transactions per second with relatively low transaction costs. So, Astar can be a better option for those who need fast transaction speed in a decentralized environment.

Interoperability

Traditionally, blockchain users need to use a centralized exchange when transferring funds from one blockchain network to another because blockchain networks can’t communicate with each other. Astar tries to solve this problem by building a connection between smart contracts that are built using different programming languages.

The platform uses the sharded architecture of Polkadot to provide true interoperability to the users.

Astar Network Brief History

Astar Network was introduced by Sota Watanabe in 2019. Watanabe worked with Stake Technologies to introduce this network. The platform was initially introduced as Plasm and was later rebranded as Astar in 2021. The project was designed with the goal of providing a Layer 2 scaling solution for Polkadot.

Astar is one of the leading projects in the Polkadot ecosystem as it has raised more than $33 million over time. Astar has a goal of providing better efficiency with fast speed and lower costs. Since its launch, the project’s user base has significantly increased.

Important Features of Astar Network

DApp Staking

On a traditional blockchain network, the miners need to deploy an expensive setup to earn mining rewards. Similarly, the developers need to pay gas to deploy their applications on the network. But Astar Network equally distributes rewards among developers and block validators because developers add value to the network.

So, 50% of the rewards go to block validators and the remaining 50% goes to developers. The developers can assign an administrator to their decentralized applications. The administrators are recognized as operators within Astar Network.

Smart Contract

Astar is dedicated to offering a scalable platform with its smart contract capability. Thus, it can grab a huge portion of Polkadot transactions because Polkadot doesn’t have this feature. Thus, it will encourage developers to develop innovative DApps by providing them with an opportunity to scale up easily.

Operator Trading

The developers can get assistance from operators in administration, chain maintenance, and other tasks. The operator needs to purchase the app to perform these duties. The developers can operator’s track record to decide whether to appoint them the app administrator or not.

How Does Astar Work?

Astar Network consists of two layers. The first layer is the base layer which keeps a record of all the transactions. The second layer is made up of Optimistic Virtual Machine that can provide better scaling solutions. Astar isn’t just limited to Polkadot it can also be used for other Layer 2 networks including lightning network.

The platform incorporates Plasma as a service so that the developers can deploy applications without much effort. The best thing about the Astar Network is that it rewards developers based on the performance of their smart contracts.

Astar Tokenomics

ASTR is the native token of Astar Network that is used to pay transaction fees. The ASTR token holders have the option to become a validator by staking their ASTR tokens or support a particular application by locking their tokens. Similarly, the ASTR token holders can participate in Network’s governance by voting on several proposals.

With a circulating supply of 4.3 billion tokens, ASTR has a market cap of $271 million. It ranks among the 200 best cryptocurrencies in terms of market cap.

Conclusion

Astar Network is a Polkadot-based network designed to fix the scalability and interoperability issues in the blockchain industry. It has designed a unique rewarding system to encourage developers. Moreover, it offers faster transaction speeds with lower costs. If you need more information about how Astar Network works, feel free to get in touch with us.