Big data tech company Covalent has just announced its decision to decentralize. The Covalent network will be based on Moonbeam, a smart contracts platform built on the Polkadot blockchain.
In a bid to solve the challenges presented by a multi-chain ecosystem for centralized databases, Covalent is taking steps towards the future. It will move to decentralization, based on blockchain technology.
In making the decision, Covalent was careful to consider its specific business needs such as EVM bridge compatibility, indexing of live DApps, data demand, and community. Keeping these in mind, they were able to conduct a thorough audit of the blockchain space to figure out what best suits their needs.
In fact, Covalent was interested in the Polkadot network from the start. However, the network faced many challenges in finding the right platform. Specifically, the need to create their own parachain to utilize the platform, as well as learning the coding lingo.
The advent of Moonbeam solved these issues instantly. Not only did Moonbeam simplify developing Polkadot-based blockchain applications, but it was also compatible and interoperable with Ethereum.
This compatibility allows developers to transfer already existing smart contracts and DApps with minimal changes. Since Moonbeam is a parachain on the Polkadot network, it enjoys the shared security of the relay chain and can integrate with other chains connected to its main network.
The only con of choosing this option was that Covalent will have to wait! Moonbeam will launch its mainnet by mid-2021. Covalent will be indexing both Moonbeam and Moonriver parachains, and use the first as a settlement layer.
This article was first published on coinquora.com
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Source: Cryptocurrency - investing.com
