What is Moonriver (MOVR)? And how it works? Moonriver (MOVR) is actually the network and token behind Moonbeam which on the other hand is the first parachain approved in the Polkdot network, therefore MOVR is a cryptocurrency that allows it to have compatibility with Ethereum as well as reach more users and markets with interoperability through chains. It got a little tricky, right? Don't worry, we are going to explain each thing separately to make it easier to understand.
Let's first understand what it is Polkadot.
Polkadot is an open source blockchain platform whose main features are aimed at providing a network focused on communication between different blockchains and decentralized applications. In addition, its differential is the fact that the networks connected to Polkadot can be customized according to the needs of those who are developing these solutions.
Polkadot came about through one of the leading figures in the crypto world, Gavin Wood. Wood is known to be one of the leading developers of Ethereum, having worked alongside VItalik Buterin, creating the Solidity coding language for Ethereum smart contracts. Wood decided to leave in January 2016 to start his own project. Besides him, the main names behind Polkadot are Robert Habermeier and Peter Czaban.
Having closely experienced the creation of Ethereum, Wood was aware of its limitations and wanted to resolve precisely these points, in particular the communication between different systems and blockchains (interoperability), the speed of transaction processing, and the number of transactions per second it supports. the net. .
The official launch of cryptocurrency Polkadot took place in May 2020, and in just over a year of existence, its performance has already impressed investors and experts in the crypto world.
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What is MoonWhat is Moonriver (MOVR)? And how it works? What are Parachains?
One of the main concepts related to Polkadot is Web 3.0, which is basically the next generation of internet technology. This third generation of the Internet is the one focused on the use of machines and artificial intelligence, whose main objective is to create more intelligent and interconnected web sites and applications, capable of capturing, processing and understanding information and data, especially on user behavior In the net.
In this way, through Artificial Intelligence and machine learning techniques, Web 3.0 seeks to provide users with increasingly personalized and relevant information, according to their online behavior. As Polkadot aims to create a platform that facilitates communication between different systems, including decentralized applications, it will have a huge influence on this area of technology. For this reason, investors and institutions have made a strong commitment to the project.
Polkadot's main chain is called the Relay Chain, while the individual blockchains that develop within its ecosystem are called parachains. These parachains can be created by any developer and for any purpose, be it an individual or a company. Once created, this parachain connects to the main Polkadot network and thus enjoys interoperability with the other parachains on the network.
In order for the system to work effectively, Polkadot has its own process to validate and protect the data and transactions that take place on the network. This process is managed by a set of validators, which also have the function of balancing and distributing transactions between the connected parachains, so as not to congest the network and scale services.
The DOT cryptocurrency, native to the network, functions as a kind of fuel for it, similar to the Ether (ETH) token of the Ethereum network. DOT was developed with some specific functions that help keep the system running, the main ones being stakeout and linking, which we will delve into in the next topic.
Each parachain maintains control and sovereignty over its network while benefiting from Polkadot's shared security and cross-chain interoperability; Polkadot parachains can exchange any type of data, including tokens, data, smart contracts, credentials, and even off-chain oracular data such as share prices.
So parachains are like a branch of Polkadot that connects to the network, uses the same core functions, but can develop its own applications and functionalities.
What is Moonriver (MOVR)? And how does it work? What is Moonbeam and Glimmer?
Within this concept of parachains, Moonbeam emerged, which is a smart contract platform compatible with Ethereum. in the Polkadot network that facilitates the creation of natively interoperable applications, that is, it is a parachain created to work in the Polkadot network. Do you remember the concept of a branch? So Moonbeam is one of these branches of Polkadot and therefore uses the Polkadot blockchain but has its own applications.
The Moonbeam network quietly came into existence in January 2020 to facilitate communication between the largest blockchain networks. Moonbeam launched its Testnet in September 2020. The launch was a triumph, but Moonbeam did not fully advance until November 2021, when the network became a parachain on Polkadot.
Moonbeam's native token is called Glimmer (GLMR). GLMR fulfills several important functions:
- Payment of transactions and smart contract execution fees (like ETH does on Ethereum)
- Facilitate network security
- On-chain governance, whereby incumbents can propose referendums, vote on proposals, and elect board members.
- Moonbeam relies on its native utility token, Glimmer (GLMR), for its operations. The token is central to the design of the parachain as it powers smart contracts, facilitates network security, and enables DApp performance.
What is Moonriver (MOVR)? And how it works?
Now that we know what Polkadot is and how the concept of parachains works and what they look like, we can get clear on what Moonbeam and its native token, Glimmer, are. With all this learned, we can now explain what Moonriver is.
Moonriver is Moonbeam's Canary network, that is, it is another blockchain network that is connected to Moonbeam. Do you remember the branch? So Moonbeam is a branch of Polkadot and Moonriver is a branch of Moonbeam. So, like Moonbeam, Moonriver is a smart contract platform that is compatible with Ethereum and Polkadot, but is used by developers to test new code in a live environment before uploading it to the Moonbeam network.
But as Moonbeam has yet to be officially implemented on the Polkadot network, Moonriver launched inside another parachain, Kusama, on August 26, 2021. Over the next six weeks, Moonriver facilitated 2,5 million transactions, saw the creation of 128 wallets and had a quarter of a billion dollars in value deposited on its network.
This means that even without the official implementation of Moonbeam within Polkadot, developers have early access to Moonriver to start building, experimenting and launching, and other participants can access DApps and assets on that blockchain.
Once Moonbeam is up and running within Polkadot, Moonriver will be disconnected from Kusuma and connected to Moonbeam, which means that new code will first be sent to Moonriver, where it can be tested and verified under real economic conditions, before being sent on Moonbeam.
QWhat is Moonriver (MOVR)? And how it works? What is MOVR token?
The native cryptocurrency of moonriver, MOVR, plays a key role in the maintenance and operation of the Moonriver network. It is expected to be used to pay transaction fees, support the execution of smart contracts, encourage collectors to produce blocks to support the network, and facilitate Moonriver's on-chain governance mechanism.
Moonriver's native MOVR cryptocurrency plays a key role in the maintenance and operation of the Moonriver platform and can be used to execute smart contracts, incentivize nodes, pay transaction fees, and facilitate governance.
As a decentralized smart contract platform, Moonriver requires the MOVR token to function. This token is fundamental to the design of Moonriver and cannot be removed without sacrificing essential functionality. Some of the uses of the MOVR token on Moonriver include:
- Support gas metering of smart contract execution
- Incentivizing packagers and leveraging the mechanics around creating a decentralized node infrastructure on which the platform can run
- Facilitate chain governance mechanism, including referendum proposal, board member election, voting, etc.
- Payment of transaction fees on the network.
Moonriver is targeting a 5% annual inflation rate and as such has an unlimited supply of tokens.
The purpose of Moonriver's inflation is to pay for ongoing network security needs. The key elements in the security budget are paying for a parachain slot on an ongoing basis and encouraging poolers to provide pooling services (block production) to support the Moonriver network. Of the 5% inflation, 1% goes to incentivize hitters and 1,5% goes to the parachain bonus pool to accumulate on-chain funds to pay for one parachain slot in perpetuity. The remaining 2,5% goes to users who stake their MOVR tokens and help drive the interleaver selection process.
Fees on Moonriver related to transactions and execution of smart contracts are handled in two ways. 80% of fees spent are burned, acting as a deflationary force and adding value to existing MOVR holders based on increased network utilization. 20% of fees spent go to on-chain treasury, which can be allocated through on-chain governance to projects and initiatives that drive adoption and engagement with the network.
MOVR can be purchased from virtually every major cryptocurrency exchange in the world. Check it out: https://coinmarketcap.com/pt-br/currencies/moonriver/markets