Encointer Platform Brings New Opportunities for Web3

Web3 appears to be the new era of the internet. However, it still faces problems like financial inclusion.

Two weeks ago, on January 9, Encointer was recently granted as a common good parachain slot in the Kusama network. Kusama network is the test network of Polkadot, in which both are aiming to expand and grow Web3 services.

Alain Brenzikofer, Founder of Encointer, said:

“Improving financial inclusion is imperative for Web3 to play a meaningful role for humanity. I am profoundly encouraged by the support from the Kusama council and KSM holders for this initiative”. 

What Is Encointer?

Encointer is a framework that uses blockchain technology that aims at two things, to provide a basic income with a local cryptocurrency and that individuals have a unique digital proof personhood(PoP).

Any community would be able to issue, distribute, and use a community cryptocurrency without using a central authority like a bank. Encointer will bring developing and emerging countries opportunities to join this new decentralized digital economy.

On the other hand, besides creating a community token, it gives people a unique identity system. During Encointer meetups, which are physical, PoP identities are given, so always each one will only have its own PoP.

Understanding Parachain Slots

First, you need to know how Kusama and Polkadot networks work. Their main chains are called “Relay Chains”, built as Layer 0’s. To have better scalability in the network, there are Parallel Chains known as “parachains” built as Layer 1’s that are connected to the main chain as you see in the picture below:

Example of Kusama/Polkadot infrastructure. Source: Polkadot network docs.

So each main chain supports a limited number of parachains. These are called parachain slots. These slots can be granted as a common good parachain as Encointer did and auction granted parachains.

The difference is that common good parachains are decided by the network’s on-chain governance system and are for specific purposes to improve or benefit the ecosystem. Auction-granted parachains are decided by a permissionless auction, where the users (generally through crowd loans) lock up their tokens bidding in the parachain they prefer.

Platforms like Encointer are helping new people to join Web3 by giving them global financial inclusion.