Moonbeam, a unique cross-asset product that acts as Polkadot's (DOT) parachain, announces it has improved its Ethereum (ETH) compatibility. Why is this novelty a crucial one for the DeFi segment?
Moonbeam has deployed Alpha testnet v3
According to a press release shared with U.Today, the Moonbeam project tasked with building Polkadot parachain for decentralized applications is now being stress tested in v3 of its Alpha testnet.
This release includes greater Ethereum compatibility so that all Solidity-written dApps (including red hot decentralized financial protocols—DeFis) can easily migrate to Polkadot cross-chain infrastructure.
Now its account management system is based on a single private key/wallet, so developers can control their dApps just like they did on Ethereum.
The Moonbeam team plans to roll out its mainnet iteration as soon as early 2021. Thus, this release may be considered a "dress rehearsal" before the long-anticipated mainnet.
New level of Ethereum compatibility
Alpha Version 3 release fully supports Ethereum-like H160 addresses and ECDSA (signature scheme) keys on Substrate. Moreover, account management in the Ethereum Virtual Machine (EVM) and Substrate (Polkadot smart contracts engine) is unified.
Fixes in Metamask, Remix, Ethers.js and other user and development infrastructure for Ethereum are also added.
It should be noted that full Ethereum compatibility becomes a "sine qua non" for early-stage decentralized application ecosystems. As covered by U.Today previously, support of Ethereum products was the motto of Binance Smart Chain, a smart contracts environment by leading crypto exchange Binance.
Also, Flare, an overhyped product that empowers XRP Ledger with smart contracts functionality, also promotes itself as an EVM-compatible product.
Mainly, developers are leaving Etheruem (ETH) due to high transaction costs, significant settlement latency and very limited throughput on the second blockchain.