What is Shiden? (SDN)

Shiden is a smart contract platform for decentralized applications (dapps) on the Kusama network. SDN is built to support “layer 2” solutions, which refers to secondary frameworks built on top of existing blockchains that improve a network’s scalability and transaction speeds. Shiden is intended to operate on Kusama as a parachain.

If you’re not familiar, parachains are private, user-generated blockchains connected to Kusama’s Relay Chain, the main blockchain and heart of its network. Relay Chain is responsible for Kusama’s shared security, consensus and transaction agreements. Parachains are integrated into the Relay Chain, taking advantage of the core features of the Relay Chain.

Shiden is designed to work as a “canary net” for Plasm, its Polkadot counterpart, created by the same team; this means it provides early versions of code that are available before launch on Plasm.

Shiden’s native cryptocurrency, SDN, plays an important role in maintaining and operating the Shiden network. And it can be used to stake and reward nodes, pay transaction fees and reward dapp operators.

Similar to most parachains, SDN is expected to have community members using KSM, Kusama’s cryptocurrency, to vote on the app to be published on Kusama in a process called the Parachain Auction.

SDN Launch & Issuance

Currently, only 100 projects can be built on the Kusama network. And he can exploit the security of the Relay Chain by accessing what Kusama calls the parachain slot. This number is flexible and may change over time through management voting.

Projects are given access to Kusama parachain slots for fixed periods of 6-48 weeks. And Shiden must go through an auction to gain access to one of the 100 slots.

During a parachain auction, Kusama owners can link their KSMs to support the project they believe should get a parachain slot. After a set period of time, the project with the most committed KSM to their campaign usually gains access to a parachain slot. And this allows them to work on Kusama’s network for a period of 6-48 weeks.

The Shiden team will crowdsource support for the parachain auction bid by accepting community contributions. If Shiden wins an auction, backers are expected to receive Shiden’s SDN token.

Of note, if Shiden fails to win a parachain slot, the KSM committed to their bid by community contributors will be returned at the end of Shiden’s auction campaign. If Shiden wins an auction. The linked KSM will be returned to the participants when Shiden’s access to the parachain slot ends.

Shiden’s Network Design

The developers run the Shiden software special programming logic (smart contracts). And it can use it to design new programs (decentralized applications) to replicate products and services. The Shiden network is designed to be compatible with a number of layer 2 scaling solutions, including Plasma and Optimistic Virtual Machine, where developers can leverage dApps they deploy on the Shiden blockchain.

To achieve this, developers can deploy Ethereum smart contracts thanks to the EVM compatible blockchain. Or they can write their own programs using Ink!, a pas-based smart contract programming language built for Polkadot and Kusama applications.

Monetary Policy

SDN is expected to be airdropped to those linking KSM to the project during the parachain auction, which they refer to as a “paradrop”. The general supply and distribution of SDN tokens and the details of the paradrop are not known with certainty and are subject to change.

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