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This project wants to recreate Ethereum on Polkadot

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The MoonBeam project is planning on setting up a custom parachain that emulates the Ethereum Virtual Machine environment, effectively recreating Ethereum (ETH) on Polkadot (DOT).

Developers on Polkadot and some other interoperability projects usually need to set up an entire blockchain to host their decentralized apps. While Polkadot’s Substrate framework is intended to make this process simpler, not all DApps need that level of control over their environment.

MoonBeam seeks to become a kind of Ethereum emulator for Polkadot, running on the same virtual environment that is currently powering all smart contracts on Ethereum.

The team says that this allows Ethereum DApp developers to only make minimal changes to their code and maintain use of developer tools like Truffle and Metamask. At the same time, the integration with Polkadot would allow for easy interoperability with the rest of the Polkadot ecosystem. Other Substrate modules will still be available, allowing developers to implement on-chain governance, social recovery for wallets, and other features with ready-made code.

The team claims that MoonBeam is a more affordable smart contract platform with strong on-chain governance — often emphasized by Polkadot co-founders as a necessity for blockchain systems.

MoonBeam will also be interoperable with Ethereum and Bitcoin (BTC), thanks to dedicated bridges built by other teams.

Nonetheless, the competition in the DApp scalability space is tough, as multiple layer-one chains compete with Ethereum-native layer-two solutions. While DeFi largely cemented Ethereum’s dominance in the smart contract space, the limitations of its blockchain became apparent in the summer of 2020. MoonBeam and Polkadot are some of many projects looking to capitalize on this by providing an alternative platform. Other names include Solana, Binance Smart Chain, Near Protocol and Cosmos.

MoonBeam’s launch date is yet to be determined, as it depends on Polkadot’s Parachain offering auctions going live. While most expect it to happen around Q1 of 2021, no clear launch date is set.



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Ethereum

Bitcoin price rally cools down as Polkadot gains 34% in first week of ‘altseason’

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Bitcoin (BTC) fell below $26,000 on Dec. 29 as fresh fallout from Ripple’s threatened U.S. lawsuit was felt throughout crypto markets.

Cryptocurrency market overview. Source: Coin360

BTC price dips as Coinbase halts XRP trading

Data from Cointelegraph Markets, Coin360 and TradingView showed BTC/USD hitting lows of $25,830 during Tuesday trading.

$27,000 support failed to hold overnight, sparking a retest of lower levels which now center on $26,000. At the weekend, Bitcoin hit all-time highs of $28,400 before swiftly reversing.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

The latest losses come as XRP, the fourth-largest cryptocurrency by market cap, hits $0.23 thanks to major U.S. exchange Coinbase opting to suspend trading from next month. The reason is a lawsuit from the U.S. Securities and Exchange Commission (SEC), which threatens to classify XRP as an unlicensed security and make trading it all but impossible.

“There is going to be a rangebound construction, after which 2021 will most likely break out again,” Cointelegraph Markets analyst Michaël van de Poppe summarized about Bitcoin’s short-term perspectives in a video update on Monday.