7 Best Polkadot Ecosystem Tokens to Watch in April 2022

Ever since it emerged, Polkadot has been attracting members of the crypto industry due to its great potential. It has developed its own scaling technology that features parallel chains — parachains — that run alongside its main chain. The solution was invented in order to boost the scalability of its blockchain, and offer an alternative to troubled networks such as Ethereum, which are having difficulties dealing with the demand.

A faster, more scalable network with extremely cheap transactions and enhanced ease of use did the trick, and developers started coming to Polkadot and bringing their ideas — and in some cases, integrating their already existing projects — to the new network. We looked into many of these projects, and we selected 7 of them that we consider the best tokens to watch in April 2022.

Without any further delay, here are our top picks.

1. SORA

The first on our list is SORA — a project that launched in the mid-2020 with the intention of creating a supranational economic system, capable of efficiently offering capital to producers. The project’s long-term goal is to contribute to pushing humanity forward, and to offer a fair way to allocate capital with a democratic governance structure.

SORA has an idea that can lead to the creation of decentralizing the concept of a central bank, which is something quite interesting, given the decentralized nature of the crypto industry. In addition to that, it also offers a new kind of network that implements a new way to architect a parachain blockchain that connects to Polkadot’s relay chain.

Finally, SORA also excels when it comes to providing dApp tools that rely on digital assets, such as bridges that would allow tokens to move between blockchains, or atomic token swaps, and even solutions for creating programmatic rules involving cryptocurrencies. It is a bit complex and technical project, but it comes with plenty of new ideas for improving certain aspects of the crypto industry, and even the crypto industry as a whole.

2. Litentry

Next, there is Litentry, which is only a little over a year old at this point. The project was created to deliver a decentralized identity authentication and user activity data management infrastructure. Essentially, it aims to help bring change to the world by creating a user-centric network based on blockchain technology.

The goal is to create an identity-based network, accompanied by all the related features and tools used for identity matching. As part of that, it also came up with a concept of an identity staking mechanism. The project is, of course, fully decentralized and entirely community-governed, powered by blockchain technology, and it has a strong focus on privacy protection.

Litentry has recognized that people have already generated massive amounts of data that now sits in various decentralized systems, and it aims to create a way to connect all of these databanks and have them cooperate in order to deliver as much data as possible, as quickly as possible, whenever and wherever it is needed.

To learn more visit our how to buy Litentry guide.

3. Raze Network

In the third spot, there is Raze Network, which is a Substrate-based interoperable protocol developed for the Polkadot ecosystem. The project is working on creating cross-chain privacy middleware for decentralized finance, as well as for Web 3.0 — the decentralized internet that blockchain technology is expected to help develop.

It is a native privacy layer that can offer end-to-end anonymity for Web 3.0 and DeFi, with the objective to create a privacy-preserving payment and trading system that would function across a number of blockchains. It has a native cryptocurrency called RAZE, which plays a crucial role in the project’s ecosystem.

The token can help with preserving privacy, as it will allow DeFi users the ability to move between apps and blockchains seamlessly and without leaving a trace of the user’s trading history or interactions with applications. It can also be used for voting and governance, as an intermediary of exchange, as well as a liquidity reward. And, of course, it will rely on the token burning mechanism, where a certain percentage of transaction fees in RAZE tokens will be burned.

4. Kylin

Halfway down the list, we have Kylin. Kylin, or Kylin Network, is a project that aims to provide a decentralized data infrastructure solution that it calls #DeData. It is meant to be another project that will help bring forth Web 3.0, leveraging Polkadot and Substrate 2.0 Off-Chain Workers, including Kylin Data Analytics, Kylin Data Oracle, and finally, Kylin Data Marketplace.

The project has a native token called KYL that has a number of use cases, such as staking for data miners, arbitrators, and validators. Miners need to stake KYL with a higher stake, in order to increase the probability of being selected to fulfil data requests. Next, the token will also function as an intermediary of exchange, meaning that it will be used to pay as a transaction or query fee, and for accessing data in private APIs.

Finally, its holders will have the right to participate in the project’s governance, make proposals regarding the project’s development, or vote on the ones submitted by other members of the community.

5.    Poolz Finance

Moving on, we have Poolz Finance (POOLZ). This is another project that aims to enrich and improve Polkadot’s ecosystem by functioning as a swapping protocol. It targets startups and project owners, and it aims to allow them to auction their cryptocurrencies for bootstrapping liquidity.

Poolz Finance’s role is becoming larger and larger as the blockchain world continues to move closer to absolute decentralization. As this is happening, Poolz is empowering innovators during their pre-listing phase, and it is ensuring that they get closer to early-stage investors who might be interested in their projects. Of course, the crypto industry currently numbers around 18,360 tokens, which means that finding investors can be difficult for projects that are trying to find their voice and stand out. Poolz Finance can help with that.

The project is fairly young, as it only launched in January 2021. However, it has already attracted plenty of attention to itself, as well as Polkadot’s ecosystem.

6.    Reef

Nearing the end of the list, our sixth selection is Reef, or Reliable Extensible Efficient Fast Layer-1 blockchain. Reef is a project created to support some of the biggest and most popular crypto trends that have emerged over the last few years, including DeFi, NFTs, and blockchain-based gaming, which is blowing up right now, hand-in-hand with the metaverse trend.

The project was developed using Substrate Framework, and this allowed it to provide high scalability and enable near-instant, low-cost transactions. Furthermore, it is fully compatible with EVM and Solidity, Ethereum’s own programming language, which will allow developers to migrate their dApps from Ethereum to Polkadot without having to make codebase changes.

In other words, the project is ready to welcome and help integrate all projects that wish to abandon Ethereum’s slow and expensive network and reach a much faster alternative. Another thing to note is that the project was made for crypto newcomers, as well as existing DeFi users who are finding it difficult to maintain funds and wallets on multiple chains.

To learn more visit our how to buy Reef guide.

7.    PolkaCipher

Finally, the last on the list is a project called PolkaCipher (CPHR). This is a cross-chain privacy-preserving project developed on Polkadot’s network, and its primary aim is to expand the applications of DeFi and NFTs. More than that, it aims to expand its use cases in business settings. Of course, as part of that, the project also wants to increase the reach of Web3 apps in the blockchain economy.

With Web3 still not here, but well on its way, the project can help with its arrival by enabling seamless private integrations. In addition to that, it intends to bridge the gap between the on-chain decentralized applications and the off-chain internet economy, and it certainly isn’t the first one with that idea. Many believe that on-chain solutions will not drive off-chain finance out of business, but rather that there is a future in which the two will exist side-by-side, and be closely connected. In order for that to happen, a bridge between the two is necessary, and PolkaCipher intends to deliver it.

Conclusion

Polkadot’s ecosystem may be small compared to that of Ethereum, but it is constantly growing and developing, and more great projects such as the ones listed above are emerging all the time. While they may receive their own time under the spotlight if they prove worthy of it, for the time being, these are the projects we suggest you look into this April.