Why We Are Building on Polkadot
To realize its goal to effectively and efficiently become the world’s first borderless SMART Agreement toolkit for all business needs, PAID is building a DApp to support the entire business agreements’ lifecycle. Powered by blockchain technology and DeFi tools, PAID’s SMART Agreements make business exponentially more efficient.
The PAID Network platform also features a number of other features, including incentivized lending and liquidity pools that will allow for insurance and escrow capabilities. Any disputes will be covered through arbitration that is governed by community stakers. PAID Network users will benefit from reputation scoring validated through biometrics and DID, enabling other users to execute business with people who are reputable. The platform will also allow for community-governed crowdfunding, which aims to redefine the agreements between projects and investors. The light version of this platform, called Ignition, is scheduled to launch in early February. You can read more about it here.
Building on Polkadot enables PAID to bring all these features to fruition, primarily owing to its interoperable design rationale and adoption.
Speed and scalability
A borderless legal dispute resolution business toolkit aimed at millions — if not billions — of users must be able to support such demand. Ethereum, instrumental in providing the infrastructure for DeFi, has experienced growing pains that are difficult to resolve. It can only process approximately 15 transactions per second, and busy periods see gas fees soar to levels that are already out of reach for many people, especially in developing countries.
Polkadot’s architecture eases these issues. It is a ‘multi-chain’, meaning that multiple blockchains can connect. This provides increased scalability and speed, as transactions can be processed in parallel by the different chains.
Polkadot’s multi-chain focus leads to its second big advantage; it can connect a diverse range of different layer-1 blockchains — including the likes of Ethereum and Bitcoin using cross-network bridges — via the Polkadot Relay Chain. It allows for arbitrary data, rather than just tokens, to be transferred across blockchains. This reduces friction and provides more opportunities for cross-chain interoperability.
The Polkadot ecosystem has been rapidly expanding, particularly since the mainnet launch in July 2020. There are hundreds of projects building on Polkadot, including the likes of Acala, Polkastarter, Moonbeam, KILT, Manta Network, Konomi, Polkaswap, and Plasm. Although there are many competing Layer 1 solutions, Polkadot is more like a layer-0, as it provides the protocol that unites layer-1 blockchains into a shared ecosystem. It is the only other project that stands a chance to become a world computer, other than Etherum.
We have previously detailed our plan to launch our MVP on Ethereum before subsequently launching on Polkadot later in 2021, as well as how we will utilize Plasm to achieve this.
Our MVP will launch in the coming weeks and will provide the ability to easily create, sign, and track business agreements. Templates that will be available in the MVP will include:
- Over-the-counter (OTC) deal
- Advisor agreement
- Freelancer/independent contractor agreement
- Consulting agreement
- Referral agreement
For our mainnet launch on Polkadot, we are exploring building and launching our own Substrate-based blockchain. Substrate is a framework that allows developers to build Polkadot compatible blockchains in multiple languages and provides the ability to connect to other parachains.
We would likely start by building a parathread, before subsequently launching a parachain. A parathread allows us to participate in Polkadot’s security, as well as take advantage of Polkadot’s features, without the financial cost of leasing a full parachain slot. It provides flexibility in terms of monetary policies, custom fee structures, and governance mechanisms. It also allows for developers to “construct complex runtime logic that would be too expensive to execute with smart contracts”.
Building for the future
At PAID Network we are building a product that aims to disrupt billions of transactions per year. We are concentrated on achieving that goal, and to do so means having the right foundation. We believe that Polkadot provides us with the infrastructure on top of which to build and are excited to be working in conjunction with a number of Polkadot based projects to make this a reality.
For any questions, please feel free to reach out to us on: