Acala has three fundamental protocols. One of these protocols offers an automated market maker (AMM) decentralized exchange or DEX. The development of this DEX was inspired by Uniswap. Homa protocol is focused on staking and keeping the network secure. The other protocol is the Honzon, and this one deals with activities involving the Acala dollar stablecoin. This stablecoin is backed by multiple collaterals and maintains a value of 1 USD.
Briefly about Acala
Acala network was created by Bette Chen, the current CEO of the company. The ecosystem is still in its infancy and is managed by the Acala Foundation. However, this body will cease to oversee the network once it achieves full decentralization. At this point, holders of ACA tokens will govern the ecosystem. The network will deploy a custom Ethereum Virtual Machine (EVM), meaning developers will be able to build Ethereum-compatible applications.
A DeFi network powering the aUSD ecosystem, compatible with Ethereym and Polkadot.CryptoLists.com
Acala ecoystem is a direct competitor to Ethereum. It was created to improve the transfer fees and transaction speed of decentralized finance systems. Unlike Ethereum, the Acala network allows any blockchain network to participate and pay the gas fees in any currency.
Utility of Acala?
You can use this ecosystem to borrow aUSD stablecoins using various other tokens as collateral. You can also swap between any two tokens that are supported by the network. If you are interested in liquidity staking, you can wager DOT to receive rewards in the form of L-DOT tokens. Another way to earn on this network is by staking LP tokens to earn interest in the form of ACA.
Acala
Release Date: December 18, 2021
Advantages at Acala
+ It enjoys the security of the Polkadot blockchain.+ Acala supports about 1000 transactions per second.
+ Investors can stake tokens and earn interest.
+ With a custom EVM, developers can build Ethereum-compatible dApps.
Disadvantages
- Acala network has a lot of competition from other DeFi ecosystems.- The Acala blockchain is still very young.
- At the moment, it isn’t decentralized.
- The native token, ACA, has gone down from 2.4 USD in Jan to 0.18 the 29th of Oct, 2022.
Costs
▪ Rated at 10/10At the moment, gas fees on the Acala blockchain can be paid in many different cryptocurrencies. The fees will vary depending on the blockchains you choose to transact through. However, the costs are extremely low and will not make any major change to the amount you transfer. For example, with Polkadot, you will usually pay a fee of 0.0154 - 0.0157 DOT, which is less than $0.2.
Reputation and Buzz
▪ Reputation rated at 9/10▪ Buzz rated at 8/10
Acala blockchain has played a major role in making DeFi protocols more accessible. It has solved the scalability issue of Ethereum while maintaining very high levels of security. These factors have made the network extremely popular among crypto enthusiasts. Its Twitter page currently has more than 269,000 followers.
FAQ
Who created Acala Blockchain?
Acala blockchain was created by several individuals. One of these is Bette Chen, the current CEO of the network. She studied at the University of Auckland and has a Master of Business Administration degree. Other co-founders of the ecosystem are Ruitao Su, Fuyao Jiang, and Bryan Chen.
Is Acala Blockchain proof of stake?
Yes, the Acala network is proof of stake. To secure the network, individuals have to stake their DOT coins to earn L-DOT tokens. Proof of stake is preferred because it does not contribute to environmental degradation as much as proof of work.
Will Acala Blockchain overtake Ethereum?
This blockchain is highly unlikely to overtake Ethereum. It is worth noting that the implementation of Ethereum 2.0 has solved a lot of issues in the previous version of the network. Also, the Ethereum blockchain enjoys the first-mover advantage and has already received a lot of support from the crypto community.
What is the native token of the Acala blockchain?
The native token of this ecosystem is the ACA token. It has a total planned supply of 100 million tokens, and all of these will be minted with the launch of the mainnet. This will be the utility token and governance token of the network.
History about Acala
8th of May, 2020 - The first version of the Acala website goes live. Polkawallet and Laminar is founding members of Acala network.
June, 2020 - The roadmap for Q4, 2020 is live. Implementing EVM & Smart contracts, along with launching on Kusama and Polkadot are among the goals.
Screenshots from Acala
