Moonbeam is a Layer 1, Ethereum-compatible ecosystem running on Polkadot. The Moonbeam platform provides not just an EVM implementation, replete with Web3 functionality similar to that of Ethereum but also several additional features, including on-chain governance, staking, and cross-chain capabilities.
Moonbeam allows developers to deploy Ethereum’s Solidity and Vyper-based smart contracts on the Polkadot environment seamlessly, allowing Ethereum-based dApps to extend into the cross-chain ecosystem. As Moonbeam mirrors Ethereum's Web3 RPC accounts, developers can also connect existing tools and dApp front-ends from Ethereum via Moonbeam.
The Moonbeam network exists as a highly specialized parachain within Polkadot’s interconnected network. What it offers is an ecosystem that can support multiple leading digital assets - from GLMR and DOT to bridged assets like Bitcoin and even Ethereum’s ERC-20 tokens. Where Moonbeam truly shines is in taking the base Ethereum feature set and adding benefits of improved scalability and far lower gas fees.
Glimmer (GLMR) is the native digital asset of the platform and is often referred to as Moonbeam crypto or token. It serves as the utility token of Moonbeam, which is deployed as a relay chain on Polkadot, and on Moonriver, a relay chain of Polkadot’s sister network Kusama.
Moonbeam is a Polkadot parachain that supports Ethereum-based existing Solidity smart contracts as well as cross-chain integrations. It operates as a parachain connected to Polkadot’s relay chain, supporting 64 collators.
Infrastructure providers on the Moonbeam network offer API endpoints to projects and their developers that can connect to its platform. In addition, the platform also supports projects that wish to operate their own nodes to build and sustain private endpoints within Moonbeam.
Even though Moonbeam platform extends an ecosystem similar to that of Ethereum, thanks to its EVM compatibility and Web3 API, there are key differences that offer a better experience on its ecosystem. Unlike Ethereum’s Proof-of-Work consensus, Moonbeam leverages a Delegated Proof-of-Stake consensus mechanism for deterministic finality.
The DPoS consensus algorithm empowers its decentralized node infrastructure with the feature to support collators by delegating their stake toward governance and validating transactions. In return for their efforts in improving the network resilience and security, the delegators are entitled to receiving rewards in the associated token, GLMR.
Moonbeam started its journey as a Polkadot parachain on 17 December 2021. Development on the project itself traces all the way back to January 2020 when it first began.
In July 2020, the Moonbeam team of developers received a grant from the Web3 Foundation to work on Substrate-based environment and Ethereum compatibility. The Alpha TestNet of Moonbeam was launched shortly thereafter, in September 2020.
A month later, the developers added publish-subscribe capabilities to the Moonbeam chain. In November that year, the account structure of Moonbeam was modified to match that on Ethereum.
The Moonriver launch started in June 2021 and was accomplished by August 2021, where Moonbeam’s technology was deployed on Polkadot’s sister chain Kusama for further testing and improvement. Following this, Moonbeam EVM implementation was launched on the main Polkadot network with the launch having successfully completed by January 2022.
Moonbeam is the platform that operates as a Polkadot parachain. Glimmer is the native digital asset of the Moonbeam ecosystem, used to pay transaction fees and for governance purposes.
In addition, Glimmer or GLMR also works as the utility token within the Moonriver ecosystem running on the Kusama network. GLMR not only lets users gain access to essential functions within the Moonbeam and Moonriver networks but also gives its holders voting rights on proposals for updating the ecosystems.
On the other hand, Moonbeam is a project that supports EVM compatibility and boasts an interoperable architecture on the Polkadot network. It lets developers operate Ethereum-based dApps on the Polkadot ecosystem with minimal fuss and hassle.
The GLMR token is an interesting asset within the crypto market as it holds much potential. The Moonbeam network lets developers access a platform for their dApps with all the benefits that Ethereum has to offer, minus the high transaction fees and energy consumption levels of its proof of work consensus mechanism.
Moonbeam benefits due to its proof of stake consensus, which lets dApps run on infrastructure that consumes very little energy to operate. In addition, gas fees on the Moonbeam platform and the underlying Polkadot network are a fraction of those in Ethereum.
In addition, Moonbeam promises additional features such as cross-chain integrations, letting dApps and projects gain access to multiple blockchain ecosystems and achieve far higher levels of scalability than is possible on the Ethereum network. For these reasons, we could very well see the adoption of Moonbeam’s ecosystem increase among dApps and their users, which could have a positive impact on GLMR price statistics.
The GLMR price and market cap can also see quite an uptick as long as the market sentiment towards cryptocurrencies, in general, remains positive, sending the overall crypto market cap higher as well. As a promising ecosystem for Web 3.0 applications with easy-to-use tooling, Moonbeam could see higher levels of interest from developers to redeploy Solidity projects with minimal changes on it, which in turn can drive up the Moonbeam price.
Moonbeam uses a token called Glimmer (GLMR) which is essential to the smooth functioning of the Moonbeam ecosystem on the Polkadot relay chain. Here are some of the key uses for the GLMR token:
GLMR is used to pay gas fees between users and applications via smart contracts running on Moonbeam. In this manner, it acts as the native currency within this platform.
Users can stake their GLMR holdings to participate in validating transactions taking place in the Moonbeam network. This option lets them become validators to verify transactions and add new blocks to the network.
GLMR holders are entitled to participate in the governance of the Moonbeam ecosystem. They can propose updates, vote on other users’ proposals, use it for electing council members to oversee the functioning of the network, and have a say in the evolution of Moonbeam.
The Moonbeam crypto is one of the recent additions to the digital asset market and holds much promise as Web 3.0 takes off. As a result, it is an interesting cryptocurrency to invest in, trade against other digital assets, or hold in the long term if you believe in the project’s potential. Do remember to check the current Moonbeam price, market cap, 24-hour trading volume, circulating supply, and other relevant news before trading the Glimmer token.
You can grow your crypto portfolio by holding GLMR in the long term and staking your holdings. In addition to staking on the Moonbeam network to become a validator, several DeFi apps also offer the option to stake GLMR and earn rewards.
KuCoin also lets you generate a stream of passive revenue from HODLing GLMR via the Crypto Lending feature. You can lend liquidity in GLMR to our platform and earn exciting APRs over a period of 7 days, 14 days or 28 days.
You can stake Glimmer tokens via the official dApp developed by the Moonbeam Foundation. Here are the steps to do this:
1. Create an account with MetaMask if you don’t already have an existing one.
2. Head to this link here http://apps.moonbeam.network/moonbeam and connect your MetaMask wallet to the Moonbeam network dApp. Ensure that you switch the network on MetaMask to Moonbeam while linking.
3. Click on Manage delegations within the Staking tab on the application.
4. Select a collator you wish to delegate your GLMR tokens for staking to, enter the number of tokens you wish to stake and click on Delegate to confirm the transaction.
5. A few minutes after the transaction is confirmed, the staked GLMR tokens will be deducted from your balance in MetaMask.