The new competitive advantage: Ethereum compatibility

Since Ethereum created the smart contract with business logic, both new and old industries have extrapolated blockchain technology to real world use cases—from decentralized finance to gaming and metaverses.

The rapid build out of this interconnected network on the AI-driven Web3, however, faces scalability and other performance issues. Over 90% of dApps run their smart contracts on the Ethereum Virtual Machine (EVM), and face limitations due to the well-known challenges of EVM: 

• It’s complicated!     
• It's slow!     
• Limited language support and developer tools (Solidity).
• High fees.
• Rigid architecture for dApps development under Web3.

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Limitations of the Solidity language

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Currently, the vast majority of Ethereum-compatible smart contracts are written in the Solidity programming language. This language was developed at the time Ethereum was created and has shown numerous shortcomings and limitations.

One of these limitations is simply that very few programmers are familiar with the language. In 2021, a study that ranks programming languages based on their presence in pull requests within a popular code database found that Solidity was not even among the top fifty programming languages, comprising less than 0.019% of all pull requests. 

Furthermore, Solidity provides less functionality than other, more popular languages.

High performance, Ethereum-compatible smart contracts with on-chain runtime

ParaState extends the frontier of Ethereum to next-generation, high-performance blockchains. It expands the boundaries of scalability and composability beyond Ethereum for dApps, especially in the DeFi sector.

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The ParaState EWASM

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WebAssembly is a technology that allows web developers to code websites in 20+ popular programming languages, and also provides other benefits for browsers such as execution speed and file size.

ParaState is adapting WebAssembly for Ethereum—allowing developers to write smart contracts in other languages, and deploy them on any Ethereum-based blockchain with greater speed and efficiency than smart contracts coded in Solidity. ParaState is also developing the virtual machine that allows these smart contracts to be added to a blockchain in which they can both function fully and interact with one another. This runtime infrastructure technology is called the ParaState Ethereum Flavored Web Assembly Virtual Machine (the “ParaState EWASM”).

The ParaState EWASM is currently the only technology known to the company to be in development that provides developers the ability to write smart contracts in all 20+ WebAssembly programming languages, and deploy them on a blockchain that can also run any Ethereum smart contract code.

The ParaState EWASM will also offer easy compatibility with any Substrate; thus, a blockchain developer using the ParaState Ewasm will be able to take advantage of cross-parachain functionality by slotting into a Substrate such as Polkadot. This will allow any ParaState EWASM based blockchain to integrate with other parachains and applications while running smart contracts built and concurrently running on the EVM. 

Plato testnet

The ParaState EWASM is an open source project that is currently being tested with a testnet called "Plato". Plato was developed to evaluate the technology with a blockchain that mimics the Ethereum Network.

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With ParaState developers benefit from:

• Compatibility with all existing EVM applications and ERC standards (ERC-20, ERC-721, ERC-1155).
• A natural bridge between Ethereum, Polkadot, and other next-gen blockchains that want to provide Ethereum compatibility.
• Higher performance, lower gas fees, lower execution time (validated by the Plato testnet)
• Robust smart contracts are written in popular high-level programming languages like Rust and DSL, unifying a broader development community.
• Upgrade of EVM using WebAssembly (the runtime engine for next-gen blockchains, including Polkadot, Cosmos, Solana, Near) to its Ethereum flavored WebAssembly Virtual Machine (EWASM).
• EVM to WebAssembly transcompilation using top-level tools like SOLL compiler.
• Integration of ParaState universal Substrate VM runtime pallet with Polkadot parachains as a Substrate module, supporting cross-chain services with other parachains.
• Innovation accelerated with EWASM in one place. One step up to ETH 2.0.

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Lite Paper

The Deck

STATE

A DAO token for advanced developer tools

ParaState will be launching an ERC-20 token smart contract on the Ethereum Network with a total supply of 1B tokens. 

Token holders wishing to participate in the governance of the EWASM's development may have the option in the future of staking their tokens in exchange for a proportional vote on the development of the technology.

STATE will be used to:

• Reward “Plato” testnet node validators to maintain an experimental showcase for advanced technology features.
• Reward dApps deployed on ParaState’s infrastructure.
• Reward token holders who stake to participate in governance.
  • Includes voting whether to kick-off a permanent L1 or parachain based on ParaState's technical infra.
• Bestow participation rights in the governance of the ParaState developers’ DAO treasury.

STATE at TGE

STATE token allocation—total supply 1B

STATE token vesting from TGE

Token vesting schedule table

Token economic paper

An open source, developer-driven community

ParaState is a decentralized autonomous organization (DAO) funded by license fees (as a percentage of gas fees) generated by transactions on other networks using ParaState technology.

ParaState will seek to integrate their technology with other blockchain projects interested in leveraging the advantages of the ParaState EWASM. They intend to monetize the use of the EWASM by other blockchains and parachains by charging licensing fees in the native currencies of these blockchains.

The ParaState Foundation will manage the developer treasury and execute the decisions of the DAO at the very beginning. Ultimately, all STATE Token holders as part of the DAO will oversee and exercise decentralized governance. ParaState intends to initially rely on off-chain voting protocols such as Snapshot to account for votes, and will seek to develop more direct participation.

EWASM runtime/pallet license fee allocation:

The intrinsic value of STATE is backed by a basket of native cryptocurrencies

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Video Tutorial

Pioneering the migration of DeFi, gaming, and NFTs to next-gen chains on ParaState

DeFi, Gaming, Metaverses, Supply Chain, Insurance, Digital Identity and other industry sectors need scalability and interoperability. ParaState is the leading compatibility solution for Ethereum dApps on higher performance blockchains, ensuring:

• Layer 1 security.
• Guaranteed cross-chain interoperability for native Ethereum dApps and any public chain.
• UI/UX improvements for dApps.
• Extensive developer community and 20+ languages supported by LLVM and domain-specific languages for robust smart contract development.
• Full compatibility with the entire Web3 blockchain ecosystem.

The highest performing WebAssembly solution

ParaState’s WebAssembly (WasmEdge) is the highest performing WebAssembly virtual machine, according to a study published in the peer-reviewed IEEE Software Magazine. ParaState provides superior performance over its competitors, leading the way in new applications and use cases.

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Important achievements include:

• ParaState’s backend WasmEdge is the first and only WASM runtime infra project designated as a CNCF Sandbox project and hosted by CNCF.
• Awarded grant from W3F to integrate the EWASM pallet into Substrate framework.
• Awarded grant from Oasis Foundation to build OETH ParaTime for Oasis network to enable Ethereum compatibility.
• Awarded grant from ICON Foundation to build a Substrate sidechain for the ICX network to enable Ethereum compatibility.
• Launched the SewUp SDK for Rust, the first Rust SDK for Ethereum compatible networks.
• Has successfully closed more than $10M fundraising this year backed by prominent investors in the industry. 

The only
production-ready solution

meeting the explosive dApp demand for Ethereum compatibility

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The high/exploding/soaring market demand for Ethereum compatibility:

• Industries migrating their applications to the blockchain (dApps) are projected to drive a 68% CAGR to a 39.7B USD blockchain market (2020–2025). 
• Ethereum is the most important dApps ecosystem in the blockchain industry and the trend is expected to continue.
• 90% of dApps are EVM dApps. 
• Few options on the market offer natively embedded EVM-Ewasm solutions.
• ParaState provides a current solution, while the market is facing a delay in the ETH 2.0 roadmap Ewasm implementation.

ParaState through 2023

Milestones

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Roadmap (2022-2023)

Closed $10M+
in fundraising in 2021