The Shiden Network (SDN) could make money by operating on several blockchains at once.
To explain, they intend Shiden to be a multichain DApp hub that operates on the Kusama blockchain. Essentially, Shiden is an extra layer of blockchain that supports a variety of blockchain solutions. Blockchain solutions Shiden claims to support include the Ethereum Virtual Machine, Web Assembly, and Layer 2.
That enables decentralized finance (DeFi) NFT, and other apps built on those applications to run on Shiden and Kusama. For example, an Ethereum (ETH) decentralized exchange, smart contract, stablecoin, or cryptocurrency could run on Kusama by adding Shiden.
Kusama (KSM) is a multchain network that cannot support smart contracts. Thus, they built Shiden to correct one of Kusam’s limitations. They intend Kusama as a platform for the construction of scalable custom blockchains. Kusama resembles Polkadot (DOT).
Can the Shiden Network make money with Multichains?
The Shiden Network achieves this with a multichain, a sidecahin, or bridgechain that connects to various blockchains.
A side chain or bridge chain is a shortcut around the blockchain. Apps need sidechains because blockchain encryption slows and blocks transactions. That often makes blockchains and cryptocurrencies to slow for commercial purposes.
Additionally, bridgechains serve as on ramps and off ramps to the blockchain. Just as off ramp connects the freeway with the surface streets, the bridgechain connects digital platforms and networks with the blockchain. For example, a non-blockchain platform such as Spotify needs a bridgechain to process cryptocurrency payments.
Similarly, an NFT platform needs a bridgechain if its operators want to accept fiat currency or credit card payments. Plus, social media apps such as TikTok need bridgechains or multichains to connect with NFTs.
Some possible uses for the Shiden Network
Moreover, the smart contract in a stablecoin needs to connect with banking platforms that operate outside chain. Stablecoins need to connect with banks so the smart contracts they contain can make payment in fiat currencies. For example, Tether (USDT) makes payment in US dollars when you spend it.
For example, TikTok uses bridgecoins to work with the Audius (AUDIO) blockchain. Theoretically, a Kusama app could use the Shiden Network to connect with Audius and through it TikTok.
Hence, Shiden could enable stablecoins with Kusama apps. One obvious use for Shiden (SDN) is a Kusama compatible stablecoin.
Shiden connects to several blockchains, including Kusma, Cosmos, Ethereum and the Secret Network. Hence, Shiden could bring a variety of stablecoins to Kusama.
Shiden works on Ethereum through the Ethereum Virtual Machine (EVM). In addition, Shiden works with WebAssembly through the WebAssembly Virtual Machine or WASM. Theoretically, you could add Shiden to most Ethereum or WASM apps with Shiden with these machines.
How Shiden could make money
Interestingly, the Shiden Network offers blockchain developers three ways to raise money. First SDN token holders can stake tokens to dApps. That allows developers to earn Shiden (SDN) from the apps.
Second, Shiden developers can raise money through a crowdloan campaign. A crowdloan is similar to crowdfunding, the difference being that crowd lenders get repaid with interest at some point. Third, they can auction the dApp off through a Kusama Parachain auction.
One way Shiden developers can raise funds is through a Kusama Auction that can work with central exchanges or Polkadot.js. Thus, Shiden tries to solve one of the fundamental problems developers face raising funds for a venture. Many impressive blockchain ventures fail because their developers have no money.
The Shiden Network
The Shiden Network (SDN) has some impressive supporters and backers. For example, the backers include Microsoft (NASDAQ: MSFT) through Microsoft for Starters. The Substrate Builders Program, the web3 foundation grants program and the Berkeley Blockchain Accelerator also support Shiden.
In addition, Shiden receives backing from Binance Labs, Longhash Ventures, Fenbushi Capital, Hypersphere, the Block Dream Fund, Gumi Cryptos, Sub0 Capital, Haskey Capital, DFG, Digital Strategies, Altonomy, AU21 Capital, TRG Capital, SNZ, and IOSG Ventures.
Hence, Shiden has real backing, including support from a major tech company. That makes it more impressive than some of the other blockchain ventures out there. Many blockchain ventures have no corporate support.
Is Shiden (SDN) a good cryptocurrency?
The Shiden (SDN) Network is attracting some attention. CoinMarketCap estimates Shiden was the 12th most trending cryptocurrency on 30 August 2021.
Conversely, CoinMarketCap listed Shiden as the 2,674th most popular cryptocurrency on 1 September 2021. Yet, Mr. Market gives Shiden some value.
For example, CoinMarketCap gave Shiden a $4.99 Coin Price, a $349.347 million Fully Diluted Market Cap and a $19.644 million 24 Hour Market Volume on 1 September 2021. They base those numbers on a Maximum Supply of 70 million SDN.
If you are looking for an interesting smart contract cryptocurrency. The Shiden Network is worth investigating. This cryptocurrency has some interesting and some impressive support and backing.
Originally published at https://marketmadhouse.com on September 1, 2021.