Polkadot is an innovative blockchain protocol that connects different blockchains into one unified network.
Developed to become a part of the internet that gives back control in the hands of individuals over internet monopolies, the network builds on the first (Bitcoin) and second-generation (Ethereum) blockchain networks while offering multiple advantages. This article highlights some of those advantages and explores the top reasons why Polkadot is expected to flourish in the near future.
Built on Substrate to Bring Innovation
1) An integral component of Polkadot, Substrate is a generic blockchain template to create a network from scratch. In simpler terms, Substrate is like a web application framework for building decentralized and distributed systems. It has been designed to create blockchains that can easily connect to the Polkadot network. Using Polkadot, Substrate-based chains can send messages to each other or outside of the network. They can also pool their security to safeguard the entire ecosystem. However, Substrate chains don’t necessarily have to be a part of Polkadot to work.
Solving the Most Pressing Issue of the Industry
2) Interoperability is a major concern of all blockchain-based projects. In order to connect with another blockchain, a project must create a bridge, which is an additional cost to the business. Polkadot solves this issue through the integration of various proprietary technologies. Notably, Polkadot can also communicate information from public blockchains to private networks and vice-versa.
Promises for Web 3.0
3) Blockchain Interoperability: Blockchain networks nowadays don’t interact with each other. Polkadot intends to change this narrative by enabling blockchains to share information and data. Networks connecting to the Polkadot ecosystem will be able to transfer any type of data or asset, in addition to tokens. This cross-chain communication allows developers and entrepreneurs to focus on their projects, and protocols instead of trying to make them compatible with other blockchains.
4) Scalable: Blockchains, since their inception, have been facing scalability issues. Even after almost a decade of launch, Bitcoin and Ethereum still can’t process more than 20 transactions per second. Polkadot promises to deliver high throughput as it uses a sharded and multichain network to process a large number of transactions for low fees. It does so by using parachains that run parallel to Polkadot, which also helps in avoiding bottlenecks.
5) Allows for Customization and Specialization: When it comes to the blockchain framework, there is no one size fits all. Each blockchain has different functionalities and features. For example, while one network helps in optimizing identity management, the other can optimize file storage. On the Polkadot Substrate development framework, all blockchains can have a novel design, customized to fit a particular use case. It means projects can offer efficient services, while also bettering the security by leaving out insignificant code.
6) Forkless: Most legacy networks went through hard forks and soft forks, thereby dividing the community. It only shows these networks face difficulty in operating and improving their protocols without forks. On the other hand, Polkadot allows for seamless and forkless upgrades. Therefore, the community doesn’t have to go another route to fix bugs or improve different characteristics of the network.
7) Self-Governance: Polkadot communities can govern their networks as they please and hold a say in the governance mechanism of the Polkadot ecosystem. Projects can customize and optimize their protocols’ or blockchains’ governance as per the requirements. They can also swap in pre-built modules of Polkadot for quick deployment of logic and test innovative ideas. Furthermore, teams can improve and upgrade their blockchain governance model as they grow.
Native Token: DOT
8) DOT is the native cryptocurrency of the Polkadot network. It enables token holders to stake DOT to vote on several decisions related to code changes. Once voters reach a consensus, the changes are automatically upgraded across the network. Additionally, token holders can participate in the network’s Nominated Proof of Stake (NPoS) consensus mechanism to help secure the network. Furthermore, projects and teams can lock their DOT tokens to bid on the auction process of parachain slots.
9) Polkadot launched its mainnet in 2020 and has since racked up impressive developments and accolades, like:
- Achieving 8th rank in terms of market cap.
- Increased the DOT token supply from 10 million to 1 billion.
- High developer activity, with 448 (as of writing) projects now active on the platform.
A Robust Team
10) Team: Polkadot is a project of Web3 Foundation, a Swiss Foundation founded by Gavin Wood. He is a former co-founder and CTO of the Ethereum network. Some brilliant innovations of Gavin’s include Solidity, Proof-of-Authority (PoA) consensus, and Whisper. He is joined by Robert Habermeier, a Thiel Fellow with deep expertise in blockchains, distributed systems, and cryptography. Peter Czaban is also the co-founder of Polkadot. He has a Master’s degree from Oxford University and has worked across data analytics industries in the past.
Polkadot is an innovative project in the market that intends to disrupt the way the current blockchain-based system works. So far, the team has been continuously updating the system to achieve its promise of being a heterogeneous and multi-chain network. However, its success depends a lot on its canary network, Kusama, which is currently under a testing phase. As soon as the results are satisfactory, the team will roll out Polkadot. Once launched, we may see DOT reaching new heights.
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