Moonbeam Funding Announcement

A Look at Our Seed Financing for Moonbeam

We have just announced a seed financing round for our project, Moonbeam: $1.4 million from many of the most prominent venture capital firms in the blockchain industry. It’s a big milestone for us, but I’d like to take a moment to pause and explain how this fits into our overall vision for the project.

We have learned a lot since the beginning of the year, when we started the project in earnest. And we have been able to self-finance many efforts related to Moonbeam. In particular, we have made a lot of progress on development, including our collaboration with Parity on the Ethereum compatibility features in Frontier based on a grant from the Web3 Foundation. But now we have a clearer idea of what is needed for us to launch the network.

How We’ll Use the Funds

We need additional resources in a number of areas, including engineering, ecosystem development, marketing, and other crypto specialized skills. We will use the raised funds to hire additional Substrate, Rust, and Solidity engineers to help us deliver on the vision of Moonbeam.

We will also hire additional resources that can help us grow the Moonbeam project community and ecosystem. And we shouldn’t forget the legal council, security audits, and other services we need from a practical perspective to actually launch our network safely.

How We Chose Our Investment Partners

I talked to a lot of investors since the beginning of the year, when we started the project. The common thread for our investment partners is that we had a connection and engagement early on, combined with good knowledge of (and interest in) Polkadot. These investors believed in us and our vision, even before the Polkadot launch brought extra attention to the ecosystem.

Alignment around a long term vision versus a short term one was extremely important to us. We did not want to work with anyone that wasn’t willing to commit to longer time frames, or that wanted the ability to exit quickly.

Strategic alignment within the Polkadot ecosystem was also very important, which is why Hypersphere, a Polkadot ecosystem fund who led our round, was a natural partner. This — combined with support from Arrington XRP, Hashkey, KR1, Du Capital, and Exchange — gives us a strong set of strategic investors that can help us drive the project forward.

Our Anchor Partners

In addition to investors, I’ve also been talking to a lot of projects in the last couple months: both existing Ethereum-based projects, and net-new projects that are building in the Polkadot ecosystem.

We announced two initial partnerships along with our funding — Bet Protocol and Linear Finance — that will be building and deploying to Moonbeam. But we are engaged with many more projects that are exploring Moonbeam based deployments.

Based on the conversations I have had, there is no question that Moonbeam fills an important need and strategic space within the Polkadot ecosystem. There is a lot of interest in building on Polkadot. And, for some teams, building a Substrate-based parachain is the right answer. But for many other teams, Moonbeam based DApps represent an easier path that minimizes the change necessary to their existing codebases, while at the same time giving them access to the users and assets on Polkadot.

Looking Forward: Building the Moonbeam Community

We have been overwhelmed by the size and speed with which our community has grown. I know there are many people in our community that want to buy Glimmer (GLMR) tokens. We are working on ways that we can get tokens into the hands of our community members and achieve a broad token distribution, starting with our Kusama network deployment.

Our most immediate priority is to expand the team, particularly the Moonbeam engineering team, so we can deliver on the vision we have laid out. But we will also be working hard to figure out our token distribution plans for our Kusama and Polkadot deployments.

This seed funding event is an important milestone for the project, and we couldn’t have accomplished it alone. We are grateful for the support from our investors, partners, the Web3 Foundation, Parity, the Polkadot ecosystem, and everyone in our community that helped us get to this point. We will use the funds to continue to drive Moonbeam forward on a steady march to our Kusama deployment, our Polkadot deployment, and beyond.

Moonbeam Funding Announcement

PureStake Closes $1.4M Seed Round for Moonbeam Network

Company Will Use Funding to Launch the Ethereum-Compatible
Smart Contract Platform as a Parachain on Polkadot

Boston, MA – September 23, 2020 – PureStake, the company developing the Moonbeam smart contract platform, announced the completion of a $1.4 million seed round led by Hypersphere Ventures, a venture firm focused on Polkadot founded by Polkadot co-founder Robert Habermeier. Other notable participants include Arrington XRP Capital, HashKey, KR1, Exchange, and Du Capital. The funding will be used to accelerate development of the Moonbeam network, a Polkadot parachain focused on interoperability.

“Polkadot was designed to enable the creation of many blockchains, each one specialized and optimized for specific purposes,” says Robert Habermeier, Co-Founder of the Polkadot Network and Partner at Hypersphere Ventures. “Moonbeam is a great example of this principle: their smart contract platform is specialized to be accessible to a large segment of developers already familiar with Ethereum developer tools and will serve as an on-ramp to Polkadot for this community.”

BetProtocol, an Esports betting and crypto-casino protocol, will develop an implementation of their system on the Moonbeam Kusama and Polkadot networks, to allow entrepreneurs to launch blockchain betting apps with no coding required.

“Moonbeam gives us quick and easy access to users and assets in the quickly-growing Polkadot ecosystem,” says Rui Pedro Teixeira, Co-Founder of BetProtocol. “And we can develop our application using Solidity and Web3 — skills we already have — rather than needing to learn Rust and develop our own parachain using Substrate.”

Linear Finance, the first cross-chain compatible, decentralized delta-one asset protocol, is also working on projects that will leverage Moonbeam smart contracts.

“We are truly impressed by the Moonbeam team’s technological expertise in cross-chain integration and easy-to-use developer tools that allow us to quickly integrate and deploy on Polkadot with the existing Ethereum codebase,” said Drey Ng, Co-Founder and Product Lead at Linear Finance. “Users can enjoy a familiar dApp environment with a better user experience. We are excited for this partnership and see long-term value in this collaboration.”

Announced earlier this year and currently in active development, Moonbeam is a smart contract platform on Polkadot that is focused on Ethereum compatibility. This compatibility includes the ability to run Solidity smart contracts and applications built using the Web3 API. Further, Moonbeam supports popular Ethereum development tools like Truffle, Remix, and MetaMask, which allows Ethereum developers to quickly deploy applications to the Polkadot network.

The Moonbeam team received a grant from the Web3 Foundation in August 2020 for their work developing a Web3-compatible RPC library.

“From the start, we’ve been inspired by the idea of an open, interoperable blockchain ecosystem,” says Derek Yoo, CEO of PureStake. “The growth we’ve seen in our community and this investment are both expressions of support for the vision of a multi-chain future. We will be using these funds to expand the team and to help us deliver a strong Polkadot MainNet deployment next year.”

Moonbeam launched its first TestNet earlier this year and expects to deliver a parachain deployment on Polkadot in Q2 2021.

Visit the Moonbeam website for more information and updates:

About the Moonbeam Network

Moonbeam is an Ethereum-compatible smart contract platform on the Polkadot network that makes it easy to build natively interoperable applications. This Ethereum compatibility allows developers to deploy existing Solidity smart contracts and DApp frontends to Moonbeam with minimal changes. As a parachain on the Polkadot network, Moonbeam will benefit from the shared security of the Polkadot relay chain and integrations with other chains that are connected to Polkadot. Currently in active development by PureStake, Moonbeam is expected to reach MainNet by early 2021. Learn more:

About PureStake

PureStake’s team has extensive experience building technology companies and complex software platforms. Led by Derek Yoo, former Fuze Founder and CTO, PureStake provides protocol implementation services and creates developer tools for next-generation blockchain networks. Learn more:

Moonbeam Monthly Dispatch July 2020

Moonbeam Monthly Dispatch: July 2020

The month of June was implementation-focused for the Moonbeam project.

There was a lot of activity in the Parity Frontier repo — including some contributions from the Moonbeam team — on the implementation of the Web3 RPC endpoints. This is a necessary component to enable Moonbeam’s Ethereum compatibility features.

We will be working on wrapping up the Web3 RPC initial implementation effort over the next couple weeks. Automated testing of the RPCs is the biggest outstanding item.

We have a few additional updates to share:

We also have two upcoming talks this month:

New Moonbeam Documentation Site

As mentioned, a big update is the launch of our new documentation site for Moonbeam, which can be found here:

The Moonbeam docs site features several new tutorials

The new Moonbeam docs site features several new tutorials using a pre-alpha build of Moonbeam.


The Moonbeam docs site has information about the motivations for the project, a technology overview, resource links, and “getting started” guides that walk through:

A few highlights from the guides follow.

Configure MetaMask to connect to a locally-running Moonbeam node

In the screenshot above, we are configuring MetaMask to connect to a locally-running Moonbeam dev node. The Moonbeam node exposes Web3 compatible RPC endpoints such that MetaMask thinks it’s connecting to an Ethereum-based network.


Connecting Remix to a locally-running Moonbeam node

In the screenshot above, Remix is connected to a locally-running Moonbeam node via MetaMask. The user is about to confirm the deployment of an ERC20 contract to Moonbeam that creates MYTOK.


Transferring MYTOK tokens from one account to another with MetaMask

The screenshot above shows transferring the created MYTOK tokens from one account to another via MetaMask.

Coming Up Next

For the month of July, our focus will continue to be on implementation.

We will be finishing our work on on the Web3-compatible RPCs in Substrate that are the basis of our Web3 Foundation grant. After this, we will be working on a unified account system in Moonbeam and the incentive mechanics for collators. 

We also will be doing live demos of Moonbeam at a Substrate builder’s virtual event on Tuesday July 21.

Join Our Community

Are you interested in trying out the Ethereum compatibility features of Moonbeam?  We would love to hear from you.  Please reach out to us on Riot.

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PureStake Announces Plans to Build Moonbeam on Kusama

Polkadot’s Canary Network Serves as a
Critical Pre-Launch Point for the New Platform

Boston, MA – June 23, 2020 – PureStake, a leader in secure and reliable blockchain infrastructure and tools, has announced plans to launch Moonbeam, an Ethereum-compatible smart contract platform, on Kusama prior to launching on the Polkadot network. By launching Moonbeam on Kusama, the cousin network to the Polkadot blockchain, PureStake will be able to experiment with the new platform on a fully-functional network and under real economic conditions before releasing it on the Polkadot mainnet.

PureStake has been active on Kusama since its launch last fall, providing secure and reliable validator services to other users and participants of the network. Known as the “canary” network for Polkadot, Kusama shares much of the same code as the Polkadot mainnet, which makes it a valuable proving ground and warning system for both technical and economic components of the project.

“The Web2-style, move-fast-and-break-things approach to software development doesn’t work in the cryptocurrency space,”  says Derek Yoo, CEO of PureStake. “Kusama helps us substantially de-risk changes and updates by running code under real economic conditions and creating a place where innovation and ideas can be worked out before they are brought to Polkadot mainnet.”

Moonbeam is currently in development and expected to be released as a parachain on the Kusama network later this year. 

Moonbeam’s Ethereum-compatible platform aims to ease the transition for non-blockchain developers and Ethereum developers alike as they explore the cross-chain integration capabilities of Polkadot and its underlying Substrate framework. You can learn more about Moonbeam on the official project website:

About PureStake

PureStake’s team has extensive experience building technology companies and complex software platforms. Led by Derek Yoo, former Fuze Founder and CTO, PureStake provides infrastructure services and creates developer tools for next-generation blockchain networks.

Multi-Chain as a Scalability Strategy: Leveraging Moonbeam for Ethereum-Based Deployments

In the past few months, we’ve received a number of questions about our relationship with Ethereum. I’d like to clarify something: Moonbeam is designed to complement and extend existing Ethereum-based deployments, not to compete with Ethereum.

In a multi-chain future, Ethereum will continue to occupy a central position, particularly around DeFi and related use cases. We expect its already significant developer and project traction to continue. At PureStake, we are personally big fans of the Ethereum ecosystem including its battle-tested developer tools, among many other things.

In this future, it’s difficult to imagine a world with only Ethereum, or only Bitcoin. Many other chains will co-exist with Ethereum, including Moonbeam and other chains on the Polkadot network. There won’t be a chain monopoly on a particular use case — there will be DeFi activity on chains other than Ethereum as well to serve the users and assets on those chains.

With this context, Moonbeam will be highly complementary to Ethereum, offering the ability for existing Ethereum-based projects to migrate some of their workloads and state off of Ethereum layer 1 to Moonbeam, while at the same time extending their reach to users and assets on other chains.

Moonbeam as an Alternative Ethereum Scaling Strategy

There are two main ways that Moonbeam can help existing Ethereum-based projects: it can alleviate scale and cost challenges, and it can help extend the reach of those projects to users in the growing Polkadot ecosystem. Moonbeam will be optimized for hybrid deployment scenarios, where some of a project’s transactions and state are migrated to Moonbeam while continuing to maintain key components on the Ethereum MainNet.

As existing projects consider their scaling strategy in the face of rising Ethereum costs (in some cases making use cases unviable), Moonbeam presents an alternative to rollup strategies such as ZK and optimistic, and sidechains such as OMG and Matic Network. Moonbeam can provide many of the same scalability benefits as these strategies, but requires far fewer changes in order to achieve them. Its faster blocktime also enables better responsiveness and more granular on-chain data, which is highly valuable in many use cases, particularly for oracle price data.

Moonbeam itself will have substantially more throughput (and, in turn, lower cost) based on its Proof of Stake-based approach when compared to Eth1 and its Proof of Work-based approach.  Since Moonbeam is a single shard environment, composability will work the same way it currently does on Eth1.

Using Parachains for Projects with High Scalability Demands

It’s important to note that Moonbeam is not the final destination for applications that need the highest degrees of scalability. Projects with very high scalability needs will migrate some or all of their backend to their own dedicated app-specific blockchain, where they will have full control over upgrades, governance, and have the ability to optimize the underlying storage and transaction implementations to their use case. This dedicated blockchain can also include the Ethereum compatibility components that Moonbeam uses to provide a dedicated EVM instance.

An app-specific blockchain represents the ultimate in scalability and control for a given workload, even if it comes with additional responsibilities such as the underlying runtime implementation, establishing a token economy, and incentivizing and building a node community. If these app-specific blockchains become parachains on the Polkadot network, they will be able to gradually relocate workloads and state from Moonbeam to their dedicated parachains, as needs dictate.

Moonbeam was very much designed for these upgrade and migration scenarios; its entire purpose is to serve as a way to reduce implementation friction, quickly scale to meet immediate needs, and provide an easy entry point to expand into Polkadot and chains connected to Polkadot. And whether projects are deployed on Moonbeam or as Polkadot-based parachains, Moonbeam can continue to be a place where integrations are done and where functionality from app-specific parachains on the network can be composed into higher-order functions before being presented to end users.

Features to Support This Hybrid Model

This focus on Ethereum compatibility and integration has informed the priority features for Moonbeam. These include:

  • Full EVM implementation based on Substate’s Pallet-EVM (which in turn is based on SputnikVM). This is needed to provide assurance that existing Solidity contracts will have the same execution behavior as they do on Ethereum.
  • Web3 RPC compatibility which means that change will be minimized for existing DApp frontends, and that you can use existing Ethereum development tools such as Truffle, Remix, and MetaMask. We are already working with Parity to implement this as part of the Frontier project.
  • A bridge that allows movement of tokens and state between Ethereum and Moonbeam. This is needed to support the hybrid deployment model with a partial movement of logic, workload, and state to Moonbeam.

In the longer term, once XCMP and SPREE are available on the Relay Chain, we will introduce new operations that provide easy developer access to Polkadot’s cross-chain integration functionality from an Ethereum-compatible environment. These features will extend the reach of existing Ethereum projects to other Polkadot parachains and even other sovereign chains that are bridged to Polkadot.

To learn more about testing your Ethereum-based project on Moonbeam, please contact us. You can also join our Riot room or sign up for the monthly Moonbeam Dispatch to be notified when a testing environment is available.

How Spaghetti Sauce Can Help Us Identify the Best Blockchain

I heard Malcolm Gladwell tell a story about spaghetti sauce in a TED talk back in 2004 and it’s one of those stories that has stuck with me and that I still think about from time to time. The story has become somewhat well known to marketeers who are drawn to its conclusions about horizontal customer segmentation, and Gladwell himself uses it to reach conclusions about human choice and happiness. For me, the story makes an important philosophical point about ideals and the importance of asking the right question but using a very easy to understand and relatable scenario.

The Pursuit of a Perfect Pepsi

The story goes like this. In the 1970s, there was a man named Howard Moskowitz who worked as a consultant to the food industry. Howard was in the business of measuring things. One of his early clients was Pepsi, who came to him for help determining the right amount of aspartame to put in their new Diet Pepsi drink. To answer this question, Howard created batches of Diet Pepsi with different amounts of the sweetener. He ran a large number of tests with people from all over the country and recorded their feedback.

When he tabulated the data from these tests, he was expecting to find a data cluster around a value, a normal distribution of data points that would reveal what the answer to the question was. Instead, what he got back was a kind of mess — there was no single point around which everyone’s preferences were clustered. These results weren’t surprising to people at the time, who thought that data sometimes wasn’t good at answering questions like this.

But Howard was a man of high intellectual standards and the result bothered him. He thought about this problem for years afterwards until one day the answer suddenly came to him: it wasn’t the data or the method that was wrong, it was the question that was wrong. They were looking for the perfect Diet Pepsi, but they should have been looking for the perfect Diet Pepsis. What?? Howard went around telling everyone that would listen that he had figured out something important, but people at the time largely had no clue what he was talking about.

Prego Road Show

Later, when Campbells hired him to improve the formulation of their Prego spaghetti sauce, he was ready. Howard approached this problem by creating a huge variety of test sauces that varied across many dimensions including spiciness, garlic, the amount of visible solids, etc. He came up with 45 different sauces and then went on the road to test all these formulations with people all over the US.

He collected a huge amount of data and when he went to analyze the data, he didn’t look for a single point that was the best fit point, but instead looked for clusters of interest.

What he found was there were significant clusters around a few different formulations: mild, spicy, and chunky. Of these, the chunky finding was the most significant as it ran contrary to the prevailing idea at the time about what spaghetti sauce should look like. Traditional sauce was supposed to be thin and without visible solids.

Campbells came out with a chunky line of sauces based on Howard’s research, and they went on to make $600M dollars from this line of sauces over the next 10 years. And if you go into any grocery store now, you can see the impact of Howard’s line of thinking. Whereas in the 70s you had one kind of sauce, one kind of pickle, one kind of mustard, now there are dozens of different kinds with many different formulations to suit different people and different tastes. A real revolution in product variety and consumer choice.

So Why Do I Tell This Story?

The key point in this story for me is the following: when people thought about Pepsi and spaghetti sauce, they assumed that there was a single best version. A kind of platonic ideal of what that thing should be. And it was the job of the company making that thing to figure out how to get as close as possible to that ideal.

This just turns out to be totally wrong. There is no ideal version of these things. There is no single best formulation. The reality is that different versions may be the best for different people and different circumstances.

And here is the power of this story. Once you get tuned into this, you realize that this spectre of the platonic ideal is everywhere. Who is the best programmer? What is the best city to live in? How do people best learn? What is the best blockchain? Just asking the question in this way already unhelpfully frames things. It assumes there is a perfect or best version, limiting the imagination and sending your thinking down the wrong path.

Applying This to Blockchains

When it comes to blockchains, I think of this whenever I hear things like: “Our design is the best because we have the most transactions per second,” “…because we have the best governance system,” “…because we are the most decentralized,” etc. It can take subtler forms like: what are the correct design tradeoffs to make when building a blockchain? Where is the best point to be in the blockchain trilemma triangle? The question assumes that there is a single best or ideal blockchain. When I hear these questions I want to say, “Best for whom? Best for what purpose? Best from what perspective?”

While I’m sure the designers of Polkadot weren’t thinking of spaghetti sauce, it strikes me that they were very aware of the dangers of this line of thinking and that they built a recognition of this danger into the design of the system. The very idea of Substrate as a framework to build blockchains already recognizes that one size doesn’t fit all. We already see a large variety of different blockchains being built on Substrate and I expect that number to grow.

And in its implementation, Substrate is very conscientious and careful about the increasing degrees of opinionation that come along with the core, frame, and node usage patterns. As for Polkadot, it doesn’t force uniformity on its parachains, allowing them to specialize to meet the needs of their specific users and use cases. It tries very hard to not universally assume what is good or best.

This acknowledgment that there is no one right way, no ideal of what a blockchain should be, is one of the reasons I am drawn to Polkadot, and one of the reasons I believe in the design of the system. Ultimately this ability for chains to adapt and specialize while at the same time interoperating to leverage each other’s specialization, will be keys to Polkadot’s long term competitive advantage.

The answer to the question “What is the best blockchain?” turns out to be the wrong question to be asking. Taking a page from Howard Moskowitz, the question should be “What are the best blockchains?”

The answer is that there could be as many “best” blockchains as there are different user communities and use cases. I expect a large number of blockchains to emerge over time to address different types of needs, and to specialize for different kinds of purposes. I think most of these needs and purposes are things we aren’t even thinking of yet.

But whatever they end up being, builders are going to take a practical approach. They will use a framework like Substrate to accelerate their development efforts, and they will attach to a network like Polkadot to broaden their reach to the users, assets, and specialized services of other blockchains.

Moonbeam Smart Contracts for Polkadot

Moonbeam: A Smart Contract Parachain with Ethereum Compatibility

We announced Moonbeam today, a smart contract platform that provides a scalable and accessible alternative to other developer platform options.

Moonbeam aims to provide developers with the ability to port existing Ethereum DApps or to create new DApps using familiar Ethereum development tools. This will substantially decrease the barrier to entry for successful Ethereum DApps that want to move to a more performant and cost-effective platform. Since Moonbeam is based on Substrate, the blockchain development framework from Parity Technologies, we are able to create a native Ethereum execution environment that provides Web3 RPC and EVM implementations to support most Ethereum DApps without significant modification. Moonbeam’s scalability and security is derived from running under Polkadot’s sharded design and shared security umbrella.

As a parachain on the Polkadot network, Moonbeam will also enable a number of interoperability scenarios, including integration with other chains to provide services such as Oracles, DEXes, and token transfers from chains such as Bitcoin and Ethereum.

Why We Decided to Build Moonbeam

We started last year as a validator on the Kusama network. Since then, we have engaged with the community, the technology, and the emerging ecosystem of tools and services. During this evolution of our engagement with Polkadot, we realized that an accessible smart contract parachain would fill a strategic need within the Polkadot ecosystem.

The primary development framework for building applications on Polkadot is the Rust-based Substrate framework. Substrate is very powerful, but it also is quite complex, where DApp developers need to account for things like how to incentivize node operators, how the resultant chain will be governed, and what the underlying token economics looks like. For some projects, it will make sense to use Substrate to build a full parachain or parathread. But for many others, a smart contract backend will be much easier and make more sense as a starting point.

By making it easier to create and migrate DApps to Polkadot, we believe we can help existing projects address the scalability challenges they are facing today. At the same time, we want to enable new cross-chain interoperability use cases — based on Polkadot — that will extend each developer’s ability to reach new users and assets. As more and more app-specific blockchains are developed to solve problems in a scalable way, this extension of developers’ reach to work with users and tokens on remote chains will be increasingly needed.

Our Focus on Ethereum Compatibility

This is a strategy motivated by practicality. Getting traction for a new developer platform is a numbers game. By providing Ethereum compatibility, we give ourselves access to the largest market of existing blockchain developers. It also allows us to leverage the relatively mature ecosystem of tools that exist in the Ethereum ecosystem such as Truffle and MetaMask.

There are also many Ethereum-based projects today that are facing serious scalability challenges due to the expense and constraints of the network. We have had conversations with projects that are considering a variety of strategies including Layer 2 solutions such as Plasma and ZK-Rollups, sidechain solutions, and also porting to other more scalable platforms. There are pros and cons to each of these strategies. The key friction in porting to another platform lies in all of the work that is required: project developers would need to reimplement existing Solidity backend contracts and DApp front ends using an entirely different technology stack, thus losing most of the valuable work they have already done. We believe that offering Ethereum compatibility on Moonbeam will greatly reduce this friction, and thus increase the attractiveness of the porting option.

Moonbeam Longer Term Vision

While our near-term energy is focused on implementing Ethereum compatibility and other base functionality on Moonbeam, we are very excited about supporting cross-chain interoperability scenarios. As XCMP, SPREE and other interoperability protocols are enabled on the Polkadot relay chain to power cross-chain token movement and remote chain RPC-like functionality, we will be actively adding integrations to other parachains into Moonbeam.

We anticipate that parachains on Polkadot will be purpose-built chains that provide specific functionality to the network and to their users. We envision that Moonbeam can serve as a simple and accessible place for these different parachain functionalities to be composed and combined into novel forms.

Naturally, this will position Moonbeam as an experimentation ground for building new applications that leverage Polkadot’s interoperability and shared security. If applications built on Moonbeam need more direct control over their resources and economy over time, they can always upgrade to a full parachain or parathread. This migration, if necessary, can be done using a gradual and co-existent approach, minimizing risk and providing project developers with multiple roadmap options.

Interested in Learning More?

We want to engage with you as we build out the Moonbeam ecosystem.  We’re actively seeking:

  • Substrate/Rust developers
  • Node operators interested in running collators

We’d also love to hear from:

  • Polkadot projects who are interested in collaborating
  • Ethereum projects that could benefit from Moonbeam

To learn more about the Moonbeam smart contract parachain, visit the project website or tune into my Sub0 talk (which will be focused on the technology).

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PureStake Announces Moonbeam, a Smart Contract Platform for the Polkadot Network

Moonbeam Allows Developers To Use Their Existing
Ethereum Applications And Smart Contracts On Polkadot

Boston, MA – April 27, 2020 – PureStake, a leader in secure and reliable blockchain infrastructure and tools, today announced plans for the Moonbeam smart contract platform. Due later this year, Moonbeam expands the accessibility of smart contract functionality by providing Ethereum compatibility and making it easier for developers to build applications that are natively interoperable with other blockchains and technologies.

Moonbeam will be released as a parachain on the upcoming Polkadot network, which is set to launch later this year. As a parachain — Polkadot’s approach to sharding — Moonbeam will benefit from shared security and composability with the entire Polkadot network while operating and developing independently. This also enables users of the Moonbeam network to move cryptocurrencies and other tokens natively across Polkadot parachains and parathreads, or across other networks via bridges.

“On Moonbeam, developers will be able to build applications that work with users and assets from other chains,” says Derek Yoo, CEO of PureStake. “This is a huge step forward in creating decentralized applications that natively interoperate across chains — opening up new potential markets for DApp developers.”

The Moonbeam network features several differentiators centered on promoting accessibility and interoperability across chains:

  • Smart contracts that work natively with other Polkadot chains or connect to external chains, like Ethereum and Bitcoin, via bridges.
  • Web3 and EVM support that makes it easy for existing Ethereum DApps and smart contract backends to migrate to Moonbeam and Polkadot.
  • Compatibility with familiar Ethereum development tools such as Truffle and MetaMask.

Moonbeam provides an essential service for the Polkadot network, which does not natively include smart contracts. Moonbeam smart contracts make it much easier and cheaper to build decentralized finance applications, which helps developers globally solve real-world finance problems using Web 3.0 technologies.

“Moonbeam’s approach promises to democratize the world of smart contract platforms in a way we haven’t seen before,” said Dieter Fishbein, Head of Ecosystem Development at Web3 Foundation. “Platforms that make it easier for developers to leverage the work they have across networks is core to Polkadot’s future and to the success of decentralized technologies as a whole.”

Visit the Moonbeam website for more information and updates:

About PureStake

PureStake’s team has extensive experience building technology companies and complex software platforms. Led by Derek Yoo, former Fuze Founder and CTO, PureStake provides infrastructure services and creates developer tools for next-generation blockchain networks.

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Choosing a Platform: A Comparison of Ethereum vs Polkadot

Polkadot is one of the most highly-anticipated next-generation, developer-focused blockchains. This comparison with Ethereum, the most widely adopted developer-oriented chain, is meant to help newcomers to the networks understand the differences between the two, and may help developers choose which one to build on.

At a high level, the two projects are only partially overlapping. Ethereum is a platform for deploying smart contracts, or pieces of logic that control the movement of native assets or state on the single Ethereum chain. In contrast, Polkadot aims to provide a framework for building your own blockchain and an ability to connect different blockchains with each other. Despite these differences, both platforms are designed for developers to build decentralized applications.

Despite Similarities, Very Different Strengths

In terms of similarities, both Ethereum and Polkadot aim to provide a space where developers can create decentralized applications. Both platforms include smart contract functionality, based on Solidity for Ethereum and Ink! for Polkadot. If we look forward to Ethereum 2.0, both platforms are pursuing a scaling strategy based on parallelized execution. Each thread of execution is called a shard in Ethereum 2.0, and a parachain or parathread in Polkadot. Both Ethereum 2.0 and Polkadot will use Wasm as an underlying technology to power on-chain logic and state transitions.

There are, however, important differences between Ethereum and Polkadot.

One of the biggest differences is design goals. Ethereum aims to be a platform for distributed finance and smart contract execution, whereas Polkadot has a vision of helping people build entire blockchains and integrating these blockchains with each other.

I have attempted to summarize what I consider some key points of difference below:

Ethereum 1.0 Ethereum 2.0 Polkadot
Architecture Single chain Multiple chains (shards) Multiple chains (parachains, parathreads)
Backend Development Solidity (JavaScript-like), Vyper (Python-like) Solidity (JavaScript-like), Vyper (Python-like) Rust, Substrate Framework
Execution Environment Single VM Multiple homogenous shards Multiple heterogeneous parachains
Composability Smart contracts can call each other synchronously Smart contracts can call each other synchronously in the same shard, or asynchronously between shards Smart contracts can call each other synchronously in the same parachain, or asynchronously across parachains
Governance Off chain Off chain On chain (e.g. Democracy, Council, Treasury modules)
Consensus Mechanism Ethash Proof of Work Casper Proof of Stake BABE/GRANDPA Proof of Stake
Program Execution Fees Per-call gas/metering-based Per-call gas/metering-based Market cost for parachain slot with unlimited usage or per-call parathread fee
Status (as of Nov 2019) Live since 2015 Will be released in phased milestones through 2021 MainNet launch expected in Q1 2020


Ethereum: Large & Thriving, But Hitting Scalability Challenges

Ethereum’s key strength is its large and established ecosystem of developers, users, and businesses including its rich set of developer tools, tutorials, etc. It already enjoys significant network effects from this ecosystem, making it the de-facto smart contract platform to develop on. Ethereum standards, in many cases, become industry standards such as ERC-20.

The value of the Ethereum network is similarly significant, providing a high degree of economic security based on the value of the underlying Ether token. The DeFi space, which is one of the areas in the crypto space with the most developer traction, is largely built on Ethereum and leverages the composability between different Ethereum smart contracts that can call each other in the single Ethereum virtual machine that powers Ethereum 1.0.

The key challenge facing Ethereum is scalability. The success of the CryptoKitties application demonstrated some of the scalability limits that affect Ethereum 1.0. One popular application was able to significantly degrade the performance and throughput of transactions on the network.

Another challenge is the gas cost required to run smart contracts on the platform. Gas fees are required for the security of the system overall, and to protect the system from being stalled by runaway programs. But as the value of Ether has risen, gas fees for running smart contracts has also risen and has made certain use cases prohibitively expensive. These costs tie back to scalability, because if there were more capacity, the fees for each transaction could be lowered.

Ethereum 2.0 aims to solve all of these scalability issues, but it is multi-year roadmap with the execution risk that comes with a multiyear re-platforming initiative. Most of the Ethereum core dev energy is going into Ethereum 2.0, which leaves not much in the way of upgrades and improvements in the existing Ethereum 1.0 chain.

Polkadot: Built on a Flexible Framework, But It’s New and Unproven

Polkadot’s greatest strength is Substrate. Substrate is a development framework for creating Polkadot-compatible blockchains, offering different levels of abstraction depending on developer needs. Polkadot is itself built using Substrate. It dramatically reduces the time, energy, and money required to create a new blockchain.

Substrate provides a much larger canvas for developers to experiment on, as compared to smart contract platforms like Ethereum. It allows for full control of the underlying storage, consensus, economics, and state transition rules of the blockchain, things which you generally cannot modify on a standard smart contract platform.

The design of Polkadot — which allows for shared security within its network — is another strength. Shared security has 2 key benefits.

First, it reduces the burden on parachain builders by providing security-as-a-service from the relay chain. This is different than the approach taken by other networks such as Cosmos, where each zone is fully responsible for its own security. This shared security simplification lowers friction for builders and simplifies the process of launching a new parachain.

Second, shared security provides a framework for parachains to talk to each other, which ultimately allow will parachains to specialize. It reminds me of the old Unix philosophy, where you create tools that do one job and do it well. Then you can achieve higher order goals by combining these purpose-built tools together. I can see something similar happening in the Polkadot ecosystem. This is the power of the Polkadot design that should create strong network effects on the network.

To mirror the old real estate saying, the top three challenges for Polkadot are in my mind are: adoption, adoption, and adoption. Ethereum has a dominant position and the largest developer community of any developer-oriented platform. Further, there are a lot of new platforms coming to market that are looking to compete with Ethereum and gain developer mindshare.

At present, there are only so many developers to go around. We are in a situation where there are more developer platforms than there are developers to support and build on them. The real challenge for Polkadot is getting enough traction and building enough of an ecosystem and developer community for the network effects of their architecture to start to kick in.

How to Choose

In summary, if you are a developer researching these two platforms for your decentralized application, it is a little bit of an apples-and-oranges comparison.

Building on Ethereum is a safe choice and makes sense if your application can be expressed easily as a smart contract, if your use case is affordable in terms of gas fees, if you don’t need a large amount of transaction throughput or control over the underlying economics of your system, or if you need interoperability with other Ethereum ecosystem projects at launch. Development on Ethereum is generally going to be simpler than Polkadot.

If on the other hand, your application is best served by a dedicated blockchain, if it needs higher transaction throughput performance, if you want full control of the environment, state transition function, storage, and economics that your application runs under, and if you are okay with higher implementation complexity, or have use cases that require integration across blockchains, Polkadot will satisfy these requirements.

Have KSMs on Kusama? Nominate PureStake via This Address:


Validating on Polkadot: The First 11 Days Banner Image

11 Days Validating on Kusama: First Impressions & Emerging Power Dynamics

It has been 11 days since we joined the active validator set for Kusama, and I wanted to share some initial thoughts on the experience in case this is helpful to other validators, nominators, or other participants thinking about engaging with Kusama or Polkadot.

The first impression to convey is that interest in Kusama and Polkadot is high. Currently there are 140 validators that have signaled their intent to validate. Since Kusama switched from PoA to PoS thus switching block production from a limited set of Web3 Foundation-run validators to a decentralized set of validators, the number of validator slots has incrementally increased from 20 to 50, 60, 75, and currently stands at 100. At no time have there been any empty slots and there are currently 40 validators waiting for an opportunity to validate.

This stands in contrast to many other projects that have struggled to recruit enough competent validators to launch their networks. This is a really good sign for Polkadot as they near their MainNet launch.

Parity Team Actively Addresses Bumps in the Road

The process of launching Kusama has and continues to flush out issues.

There have been several point releases: 0.6.7, 0.6.8, 0.6.9, including an issue with 0.6.8 that led to database corruption for some validators. There are performance issues actively being worked on now, which will undoubtedly lead to more releases. Some validators have been slashed or removed from the active set, either due to issues with the software or a failure to run nodes properly.

However, the number of issues has really been relatively small. In each case, the Parity team has been very responsive in diagnosing and fixing issues. All things considered, for a system as complex as Kusama, this has been a very smooth launch process.

Two Primary Types of Validators

The validators in the active set are ones that meet the minimum effective staked KSM levels needed to be in the top 100.

Many of these appear to be representing DOT holders who could claim KSM based on their DOT holdings and thus, have large bonded amounts. I’m inferring this from the fact that transfers are not yet enabled, so large positions would have to come from claimed KSM.

The other set of validators are those that are not existing DOT holders and received KSM grants from W3F to be able to validate. The grants were 10 KSM, so I’m assuming that many validators with bond amounts less than 10 KSM are likely in this bucket. Many of these validators have received nominations, presumably from W3F and possibly others, to get into the active set.

There hasn’t been enough time for validators to really start to market themselves to try to attract nominations. This will presumably start to happen as the Kusama launch process continues to unfold, transfers are enabled, and the validator limit is potentially raised further.


NPoS Validator Strategies

While it is too early to tell what strategies validators will use to go to market, there is one notable strategy that has emerged: the “sprawl” strategy.

Cryptium Labs is currently running 19 of the 100 validators in the active set. This is far more than anyone else on the network at this time. In NPoS (Nominated Proof of Stake) this is not only allowed, but perhaps expected. Given the fact that validators are compensated a flat fee for their service, running as many validators as can get into the active set is an economically rational validator strategy.

However, for some, the realization that large players could occupy may of the available slots was disheartening. Here is an exchange from the Riot rooms (where most of the discussions are happening) that illustrates the sentiment:

Fredy from DragonStake started with:

I wonder how the core ( Gav Bill | W3F federico … ) feel about the current adrianbrink | Cryptium Labs sybil attack.

Once we enable the TXs, the whole slots table could be filled with just 2 or 3 independent validators teams. Any concern?

Adrian from Cryptium Labs was quick to respond:

adrianbrink | Cryptium Labs

[snip…] public blockchains need to be designed so that they are secure against rational actors. Security based on altruism isn’t going to last long.
Btw, I’m not suggesting that Polkadot consensus is insecure. Maybe there needs to be more education about it though

And finally from Gavin:


i think it’s reasonable for w3f to use its KSM to keep the validator community pluralistic.


w3f has its funds;
w3f should act in whatever way it feels is best for the network;
having an active validator community with well-dispersed knowledge is good for kusama;
w3f should use some of its funds to help keep lesser staked validators of high reputation engaged.

This short exchange cuts right to the heart of some of the interesting ideas and dynamics around NPoS and how it will play out. Some good questions that this exchange raises: Will the NPoS design ultimately favor a smaller set of larger validators occupying multiple slots, or will it drive greater validator diversity? Is there such a thing as economically rational behavior that conforms to the protocol, but that nevertheless should be sanctioned or discouraged by social norms and convention?

NPoS is meant to be an improvement over standard DPoS in networks like Cosmos or Tezos. Its design does appear to be intended to discourage or prevent the concentration of stake behind any one validator, as doing this would lead to less staking returns for rationally-motivated nominators.

It is also meaningfully different from standard DPoS (Delegated Proof of Stake) because it has a separation between political power and validator services. This could guard against scenarios where, for example, validators are run for free to gather political power, as appears to be the case with the largest Cosmos validator. Many feel this leads to a weaker validator set, as it becomes difficult to fund legitimate validator businesses.

But if validator power can still be expressed in NPOS by allowing organizations or entities to have more than one — or perhaps dozens — of validators, it seems that some of the decentralization benefit of NPoS may not be as great as many believed would be the case.

I sympathize with Fredy from DragonStake’s point of view that the health of the network is greater with a more diverse set of validators, and that smaller validators shouldn’t have to rely on the goodwill of the W3F to have a shot at making it into the active set. And while W3F’s commitment to validator diversity is admirable, I also agree with Adrian from Cryptium Labs that what happens on these platforms is largely determined by the actions of rational economic actors playing by the rules codified in the protocol. Even if you have a set of social norms you try to enforce in your community, the permissionless nature of these systems means that someone can always come along and ignore your community and norms and do anything that the protocol allows.

It is always hard to predict how these systems will play out. But it seems likely that larger and better-established validator companies will pursue a Cryptium-style strategy on Polkadot. We may not see this yet, as they don’t want to tip their hand or take on the infrastructure expense on Kusama where the opportunity for profit is not possible. It will be interesting to see if, in the end, there is more or less validator diversity in Polkadot with NPoS versus Cosmos, Tezos, and other networks employing the simpler DPoS mechanism.

Decentralized Networks Are Magic

In the end, what has happened over the last 10 days demonstrates the magic of these new decentralized platforms. Probably something on the order of 100 organizations or people from different backgrounds, locations, skills all came to the table with complicated setups of software and infrastructure to help launch and support a network.

This network is something larger than any one participant could have created and wouldn’t be possible without the contributions of all of the participants. I can think of no better example of the power of platforms like Polkadot to organize people and activity in ways that weren’t previously possible, to allow anyone to join, to compensate the participants for their contributions, and to create something emergent and higher order as a result.

Keep an eye out as transfers will be enabled on Kusama soon, and I expect further shifts of stake and in the active validator set once that happens. Also feel free to leave me feedback on Riot if you agree (or disagree) with anything in this post:

Interested in staking with PureStake on Kusama? Nominate this address: