This article is a summary of the latest Keynote that Gavin Wood just made in the Polkadot Decode event.
First, it’s important to say that Polkadot 1.0 is functionally complete. It serves as a main blockchain (“Relay-chain”) with BABE consensus and secures other blockchains known as “parachains”.
Polkadot 2.0 Features
Then, Functionalities of the relay chain are token, registry, staking, and governance. So, Polkadot aims to be a provider of maximally resilient, general-purpose continuation computation, serving as the foundation of a “Ubiquitous (Multicore) Supercomputer”
Here is a summary chart of how Polkadot is improving:
| Polkadot 1.0 | Polkadot 2.0 | |
|---|---|---|
| Alternate Name | Polkadot Relay Chain | Agile Polkadot |
| Vision | The network is chains and apps | The network is space and apps, not just chains |
| Working model | The main blockchain (“Relay-chain”) that secures other blockchains is known as “parachains. | Main blockchains with various system chains and parachains |
| What it can do? | Polkadot supercomputer with 50-core CPU | 500-1000 cores |
| Revenue model | – Core leases and slots – Parachain slots are leased in 6-month chunks for up to 2 years | – Core rentals – Bulk and Instantaneous sales – Bulk sales | 75% of available cores rented in bulk with a fixed price – Instantaneous sales | usage with fluctuating prices |
| Future | Chain-centric chain with multiple parachains | Application-centric with system chains hosting apps |
While Ethereum is dubbed as a decentralized supercomputer, it fails with scalability and cost-efficiency. The Polkadot Supercomputer comprises numerous Polkadot Cores, similar to regular CPU cores. Currently, the supercomputer has about 50 cores, with expectations to grow to 500-1000 cores in the coming years.
A future model for Polkadot, known as “Agile Polkadot,” proposes core rental, which would be a departure from leases & slots. Then, core time on Polkadot cores is to be sold periodically in two ways: Bulk and Instantaneous sales.
More About Polkadot 2.0
Bulk sales target about 75% of available cores rented in bulk with a fixed price, while instantaneous sales aim for 100% usage with prices regulated by an automated market maker. Bulk Coretime can be split into multiple NFTs representing smaller periods, which can be traded like any other NFTs. Here is the new core rental enables two things:
-
- More transaction bandwidth when apps or users demand it, lower costs when not demanded.
- High-performance multicore chains, and low-latency chains.
Parachains and projects built in the Polkadot ecosystem continue to push the industry forward.
Here are 7 key takeaways from #PolkadotDecoded Day 2 🧵
— Polkadot (@Polkadot) June 29, 2023
Then, Coretime can be sliced and recombined in various ways, allowing for agile core usage. This can be conceived as pay-as-per-use and scale on the go. The new perspective of Polkadot emphasizes the network as space and apps, not just chains.
The future of Polkadot is to be application-centric rather than chain-centric, with system chains hosting apps, not the Relay chain. It will cause less stress to the relay chain while increasing the efficiency of transactions.
Conclusions
The new direction of this chain is more inclusive of consumers and businesses. It gives an easy-to-launch feature that can be highly customizable. It is pretty similar to Amazon Web Service with high upgradability and pay-per-use policies.
Amazon Web Service generated $80 B in revenue in 2022. However, it had multiple downtimes. Since the Supercomputer of this chain is based on block spaces, it will have lesser downtime with high optimizations to compensate for the downtime (if any).
4️⃣ Gaming is a major growth driver for Web3 adoption.
Mythical Games CEO @johnwastaken noted gaming is the fastes growing use of digital assets, and teased upcoming collaborations with @porsche @FaZeClan and @NitroNationGame pic.twitter.com/1TTM9uy6Yg
— Polkadot (@Polkadot) June 29, 2023
The whole agile concept makes Polkadot is an attractive option for apps. When apps relocate to Polkadot, users follow. More users attract developers, capital, and even more users. The model, however, doesn’t touch upon the Tokenomics of Polkadot. It needs a revamp as the use cases will now be different.
Anyway, this new vision makes me bullish on the future of DOT, as there may be continuous on-chain demand for the token.
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