Details of the Ethereum Virtual Machine were disclosed by Acala, which would offer developers interoperability.
A key update that will bridge both projects with Ethereum has been unveiled by one of Polkadot’s leading parachutes, Acala.
Ethereum-Compatible DeFi on Polkadot
Acala already appears on the Polkadot blockhain as a DeFi center and stablecoin issuance site.
The project is now building its own Ethereum Virtual Machine, called the Acala EVM. The latest upgrade would include full-stack composability for developers between Acala itself, the programming language of Polkadot’s Substrate, the programming language of Ethereum’s Solidity, and WebAssembly or Wasm.
This will allow multiple crypto tokens, such as DOT and ACA, and Ethereum-based ERC-20 tokens, to be supported by the Acala EVM.
In addition, on-chain scheduling and simple DeFi operations such as stablecoin lending and DEX behavior will be enabled by the Acala EVM. Pricing feeds are given by an oracle deal.
Acala also plans to provide “micro gas fees.” This means that it would potentially provide Ethereum, which is currently suffering from high transaction fees, with a quicker and less costly alternative.
The Race for Web3
Polkadot developers are competing against Ethereum to become the leading blockchain for Web3, with the help of Acala. It will not be an easy task to catch up with Ethereum, however.
Ethereum has more than 1 million users, and on top of the blockchain, nearly every big DeFi protocol operates. Over 1 million transactions are processed daily by Ethereum, while Polkascan indicates that Polkadot processes 10,000-20,000 transactions per day.
While Polkadot is capable of quickly settling transactions, given the popularity of Ethereum, attracting developers may be a different problem. However, given that Ethereum is under pressure from large transaction volumes, it may be an enticing choice for developers to follow Acala.