Kusama is a so-called “canary” network, i.e. intended to be a guinea pig for the Polkadot interoperability blockchain. After several years of development, the first projects are starting to appear on the parachains.
A first auction won by Karura
The Polkadot and Kusama blockchains – the latter being a large-scale test blockchain of the former – are 2 networks specialized in interoperability. They propose networks in which several projects evolve in parallel, each with its own blockchain, called “parachain”. In practice, these parachains communicate with each other via the main network of Polkadot or Kusama.
As it is, the 2 networks can only host a limited number of projects. To select them, they launched an auction last May allowing projects to obtain the precious places.
A little more than a month after the launch of this auction, the Karura project is the first to win the auction and, as a result, gets a place on one of the Kusama parachains.
This victory is due to the participation of more than 15,000 entities, both natural and legal, who deposited more than 500,000 KSM in support of the project, or about $105 million at the current price.
Karura: the all-in-one DeFi
In practice, Karura is an extension of the Acala protocol designed for the Kusama blockchain. This protocol is presented as an all-in-one DeFi, offering all the basic services of decentralized finance. Borrowing, saving and swapping: nothing is left out.
“By launching on Kusama, Karura can push the boundaries of what’s possible, giving the Acala Foundation team a platform to launch bold new financial innovations. Karura will have access to Kusama’s plug-and-play security, while benefiting from high processing speed, low gas charges, and interoperability across multiple networks, all ultimately linked to Polkadot. “Kusama press release
Karura is thus the first of many upcoming projects on Kusama. According to official announcements, 4 more parachain slots will be auctioned in the next 4 weeks.
Once several projects are launched, Polkadot will become a major competitor to Ethereum… unless the switch to proof of stake (PoS) scheduled for the end of the year returns Ethereum to its former glory in time.