What is Shiden Network? All you need to know about SDN
Introduction
Within the vast and interconnected Polkadot ecosystem, parachains are now taking center stage. These parachains are the building blocks of a next-generation blockchain infrastructure, facilitating increased scalability and interoperability. As we navigate this dynamic landscape of decentralized networks, Shiden Network emerges as a breakthrough addition, poised to redefine the essence of decentralized applications (dApps) and blockchain development within the Polkadot ecosystem. This article will delve into the transformative potential of the Shiden Network, shedding light on its pivotal role in advancing the decentralized future of the digital age.
What is Shiden Network?
Shiden Network is a multi-chain decentralized application layer based on the Kusama Network, a canary network of Polkadot. Shiden Network is a smart contract platform built to support layer 2 solutions, which refer to secondary frameworks built on existing blockchains that improve a network’s scalability and transaction speeds. Shiden was created to operate as a parachain on Kusama.
Parachains are custom, user-generated blockchains linked to Kusama’s Relay Chain, the main blockchain and the heart of its network. The Relay Chain manages Kusama’s shared security, consensus, and transaction settlements. Due to their integration into the Relay Chain, parachains also benefit from its base features.
The Kusama Relaychain does not feature smart contract functionality by design, so the network needs a smart contract layer, and this is where Shiden Network comes in. Shiden Network supports Ethereum Virtual Machine and Web Assembly and provides a platform for other applications like DeFi, NFTs, etc.
Shiden Network is building bridges to various blockchains and offering users incentives through staking SDN tokens. With its native support for EVM and WebAssembly, Shiden seeks to become the leading multi-chain smart contract platform on Kusama Network.
It is also essential to note that the Shiden project is part of a larger project: Astar (formerly Plasm). This means that Shiden functions as a sort of canary network or “testnet” for Astar, whose aim is to provide a scalable and decentralized app development platform that makes Web 3.0 a reality.
History of Shiden Network
Shiden Network was launched in 2021 by Sota Watanabe. He is the CEO of Stake Technologies, the same organization building Astar Network. Shiden is a sister network to Astar, so its development and feature set will be similar.
How Does Shiden Network Work?
Shiden Network operates a decentralized network system that works as a multilayered network. Its genesis is in Layer 1, which serves as the foundation, executing all the logic necessary to maintain the stability and security of the network.
Layer 1 is written and developed with Substrate. Substrate is the software development kit used to build parachains, and it is popular amongst developers because Substrate-based chains are easier to integrate into Polkadot or Kusama to become a parachain. Since Shiden is deployed on a Kusama parachain, its Layer 1 is a public and permissionless blockchain that anyone can join.
Below Layer 1 is Layer 2, which functions as the “child layers” of Layer 1. They are versatile and can be used to develop modules that provide users with various unique features. For example, Layer 2 can be designed to connect Ethereum applications with the Shiden Network through a bridge. The capacity of these Layers is infinite, and they can implement complete protocols or virtual machines in them.
To orchestrate all this, Shiden Network needs a powerful brain, which is the function of the OVM (Optimistic Virtual Machine). This machine comprises a set of standards responsible for streamlining and unifying the various types of Layer 2 protocols associated with the Shiden network.
The OVM allows developers to easily express the logic they wish to achieve in their applications and enforces the necessary rules of operation. The OVM was also created with Substrate.
Developers can also use Shiden software to execute smart contracts and design dApps. The Shiden network is designed to support various Layer 2 scaling solutions, such as Plasma and the Optimistic Virtual Machine, which developers can leverage in the dApps they deploy on the Shiden blockchain.
Developers can achieve this by deploying Ethereum smart contracts thanks to Shiden’s EVM-compatible blockchain. They can also write programs using Ink!, a rust-based smart contract programming language developed for Kusama applications.
Main Features of Shiden Network
With its multichain environment, Shiden features a diverse array of decentralized applications (dApps) and smart contracts, fostering an innovative ecosystem. Additionally, Shiden’s commitment to cross-chain compatibility enables effortless integration with existing blockchains like Ethereum, expanding its reach and utility. Some of Shiden Network’s prominent features include the following.
DApps Rewards and Staking
Shiden Network created an incentive system within the network to aid the development and finance of dApps. When new blocks are generated on the Shiden Network, the system pays the reward, and 50% of it goes to the developers of the dApps deployed in the network. In essence, Shiden Network pays dApp developers to deploy their applications on the network. This system works as a recognition system for the dApps that offer helpful and quality services to the Shiden community. It also serves as an innovative way of incentivizing the development of dApps in the network.
Shiden also developed a unique concept called dApp Staking. It is a simple mechanism where token holders show their support for their preferred dApps by staking SDN tokens. Through this mechanism, token holders contribute to the ecosystem’s growth and earn tokens through block rewards. Also, dApp developers get rewards based on the amount staked on their applications.
Lockdrop
This is the economic incentive system used within Shiden. The lockdrop system is where an SDN token holder participates in a fixed-term stake according to their level of participation within the system. When they stake their tokens, they then get the opportunity to participate in the network. They can participate as node runners, or they can choose or be chosen as validators of operations within the Shiden network and ensure the smooth functioning of the network.
Interoperability
Empowered by the shared security of Polkadot coupled with Astar XVM, Shiden allows developers to build and use smart contracts innovatively. By fostering integrations across various blockchains and applications, complex synergies can be developed, creating truly innovative solutions that would be difficult to recreate in any other environment.
What is SDN?
SDN is the utility token of the Shiden network. Its primary use case is to allow the lockdrop mechanism and incentives for all network participants. It is also used for staking for consensus and as a reward for validators. The token is also used as a commission payment within the network and is an incentive to foster the development and use of dApps in the network.
SDN Tokenomics
SDN has a total supply of 82 million tokens, with a current circulating supply of over 63 million tokens. Its market cap stands at $13 million. The token was distributed as follows:
- 30% was allocated to users
- 25% was allotted to parachain auctions
- 10% went to protocol development
- 5% was distributed to the on-chain DAO
- Another 5% went to marketing
- 10% was allocated to early financial backers
- 5% was reserved for the Shiden team (employee incentives)
- 10% was set aside for the foundation
News on SDN
On September 15, 2021, Shiden Network announced that it officially enabled Ethereum Virtual Machine and as such supports Ethereum-compatible RPC calls. Developers can now deploy Solidity smart contracts on Shiden.
Is SDN a Good Investment?
With its unique multilayer architecture, cross-chain compatibility, and commitment to fostering a thriving community, Shiden is not just a blockchain platform but a catalyst for a decentralized future. However, it must be noted that the cryptocurrency market is quite volatile, so every investor is advised to do extensive research and consult qualified financial professionals before investing in SDN.
Take Action on SDN
SDN is available for purchase from both centralized and decentralized exchanges including gate.io. Check the HOPR price here and begin trading your favorite pairs.
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What is Shiden Network? All you need to know about SDN
What is Shiden Network?
How Does Shiden Network Work?
What is SDN?
News on SDN
Is SDN a Good Investment?
Introduction
Within the vast and interconnected Polkadot ecosystem, parachains are now taking center stage. These parachains are the building blocks of a next-generation blockchain infrastructure, facilitating increased scalability and interoperability. As we navigate this dynamic landscape of decentralized networks, Shiden Network emerges as a breakthrough addition, poised to redefine the essence of decentralized applications (dApps) and blockchain development within the Polkadot ecosystem. This article will delve into the transformative potential of the Shiden Network, shedding light on its pivotal role in advancing the decentralized future of the digital age.
What is Shiden Network?
Shiden Network is a multi-chain decentralized application layer based on the Kusama Network, a canary network of Polkadot. Shiden Network is a smart contract platform built to support layer 2 solutions, which refer to secondary frameworks built on existing blockchains that improve a network’s scalability and transaction speeds. Shiden was created to operate as a parachain on Kusama.
Parachains are custom, user-generated blockchains linked to Kusama’s Relay Chain, the main blockchain and the heart of its network. The Relay Chain manages Kusama’s shared security, consensus, and transaction settlements. Due to their integration into the Relay Chain, parachains also benefit from its base features.
The Kusama Relaychain does not feature smart contract functionality by design, so the network needs a smart contract layer, and this is where Shiden Network comes in. Shiden Network supports Ethereum Virtual Machine and Web Assembly and provides a platform for other applications like DeFi, NFTs, etc.
Shiden Network is building bridges to various blockchains and offering users incentives through staking SDN tokens. With its native support for EVM and WebAssembly, Shiden seeks to become the leading multi-chain smart contract platform on Kusama Network.
It is also essential to note that the Shiden project is part of a larger project: Astar (formerly Plasm). This means that Shiden functions as a sort of canary network or “testnet” for Astar, whose aim is to provide a scalable and decentralized app development platform that makes Web 3.0 a reality.
History of Shiden Network
Shiden Network was launched in 2021 by Sota Watanabe. He is the CEO of Stake Technologies, the same organization building Astar Network. Shiden is a sister network to Astar, so its development and feature set will be similar.
How Does Shiden Network Work?
Shiden Network operates a decentralized network system that works as a multilayered network. Its genesis is in Layer 1, which serves as the foundation, executing all the logic necessary to maintain the stability and security of the network.
Layer 1 is written and developed with Substrate. Substrate is the software development kit used to build parachains, and it is popular amongst developers because Substrate-based chains are easier to integrate into Polkadot or Kusama to become a parachain. Since Shiden is deployed on a Kusama parachain, its Layer 1 is a public and permissionless blockchain that anyone can join.
Below Layer 1 is Layer 2, which functions as the “child layers” of Layer 1. They are versatile and can be used to develop modules that provide users with various unique features. For example, Layer 2 can be designed to connect Ethereum applications with the Shiden Network through a bridge. The capacity of these Layers is infinite, and they can implement complete protocols or virtual machines in them.
To orchestrate all this, Shiden Network needs a powerful brain, which is the function of the OVM (Optimistic Virtual Machine). This machine comprises a set of standards responsible for streamlining and unifying the various types of Layer 2 protocols associated with the Shiden network.
The OVM allows developers to easily express the logic they wish to achieve in their applications and enforces the necessary rules of operation. The OVM was also created with Substrate.
Developers can also use Shiden software to execute smart contracts and design dApps. The Shiden network is designed to support various Layer 2 scaling solutions, such as Plasma and the Optimistic Virtual Machine, which developers can leverage in the dApps they deploy on the Shiden blockchain.
Developers can achieve this by deploying Ethereum smart contracts thanks to Shiden’s EVM-compatible blockchain. They can also write programs using Ink!, a rust-based smart contract programming language developed for Kusama applications.
Main Features of Shiden Network
With its multichain environment, Shiden features a diverse array of decentralized applications (dApps) and smart contracts, fostering an innovative ecosystem. Additionally, Shiden’s commitment to cross-chain compatibility enables effortless integration with existing blockchains like Ethereum, expanding its reach and utility. Some of Shiden Network’s prominent features include the following.
DApps Rewards and Staking
Shiden Network created an incentive system within the network to aid the development and finance of dApps. When new blocks are generated on the Shiden Network, the system pays the reward, and 50% of it goes to the developers of the dApps deployed in the network. In essence, Shiden Network pays dApp developers to deploy their applications on the network. This system works as a recognition system for the dApps that offer helpful and quality services to the Shiden community. It also serves as an innovative way of incentivizing the development of dApps in the network.
Shiden also developed a unique concept called dApp Staking. It is a simple mechanism where token holders show their support for their preferred dApps by staking SDN tokens. Through this mechanism, token holders contribute to the ecosystem’s growth and earn tokens through block rewards. Also, dApp developers get rewards based on the amount staked on their applications.
Lockdrop
This is the economic incentive system used within Shiden. The lockdrop system is where an SDN token holder participates in a fixed-term stake according to their level of participation within the system. When they stake their tokens, they then get the opportunity to participate in the network. They can participate as node runners, or they can choose or be chosen as validators of operations within the Shiden network and ensure the smooth functioning of the network.
Interoperability
Empowered by the shared security of Polkadot coupled with Astar XVM, Shiden allows developers to build and use smart contracts innovatively. By fostering integrations across various blockchains and applications, complex synergies can be developed, creating truly innovative solutions that would be difficult to recreate in any other environment.
What is SDN?
SDN is the utility token of the Shiden network. Its primary use case is to allow the lockdrop mechanism and incentives for all network participants. It is also used for staking for consensus and as a reward for validators. The token is also used as a commission payment within the network and is an incentive to foster the development and use of dApps in the network.
SDN Tokenomics
SDN has a total supply of 82 million tokens, with a current circulating supply of over 63 million tokens. Its market cap stands at $13 million. The token was distributed as follows:
- 30% was allocated to users
- 25% was allotted to parachain auctions
- 10% went to protocol development
- 5% was distributed to the on-chain DAO
- Another 5% went to marketing
- 10% was allocated to early financial backers
- 5% was reserved for the Shiden team (employee incentives)
- 10% was set aside for the foundation
News on SDN
On September 15, 2021, Shiden Network announced that it officially enabled Ethereum Virtual Machine and as such supports Ethereum-compatible RPC calls. Developers can now deploy Solidity smart contracts on Shiden.
Is SDN a Good Investment?
With its unique multilayer architecture, cross-chain compatibility, and commitment to fostering a thriving community, Shiden is not just a blockchain platform but a catalyst for a decentralized future. However, it must be noted that the cryptocurrency market is quite volatile, so every investor is advised to do extensive research and consult qualified financial professionals before investing in SDN.
Take Action on SDN
SDN is available for purchase from both centralized and decentralized exchanges including gate.io. Check the HOPR price here and begin trading your favorite pairs.
Related articles
What Are Altcoins?
What Is Ethereum 2.0? Understanding The Merge