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Polkadot: The Ethereum killer

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Polkadot

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Like every crypto project, Polkadot main aim is to be the new internet of blockchain that will be able to communicate without any hassle or limitation.

Dr. Gavin Wood, one of the developers of Ethereum is the founder of Polkadot.

We have Ethereum and many more, why Polkadot again?

It’s not arguable that one blockchain can effectively, efficiently, and securely serve all purposes. For instance, almost all smart contracts are built on the Ethereum blockchain. This has posed many problems and that is the loopholes that motivate the creation of the Polkadot network which will provide platform for any blockchain or Crypto project.

What Are The Use Case Of Polkadot Token(DOT) ?

Stakig

Polkadot provide provideswhere you can stake your token and get rewarded.

Governance

As a token holder, you can vote for he addittion of new featuresd protocol upgrade.

Bonding

Locking of DOT token give thegivesnce to parachains to win slot.

Fees

DOT token is us for passing messages between parachains.

How did Polkadot works?

Polkadot is the new blockchain network that allows interoperability and cross-chain communication. The Polkadot is secure  by an  algorithm named GRANDPA consesus.

There are majorly four important parts of the  Polkadot network. They are Parachains, Relay chain, Bridge and Parathreads.

Parachain

Parachains are the independent blockchain that run on top of the relay Chain. Each of the parachain will be maintained by the collator which is responsible for producing chain blocks. Parachain  will also gain from a shared security model provided by the relay chain, This makes them more secured averagely from attack.

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Noteworthy, there is limited  amount of parachains in the network. This brings about public auctioning whereby individuals compete  to own a slot.

Relay Chain

 The relay chain is the bedrock of polkadots  network and majorly it is through it Parachains communicate. Blocks are validated  on Relay  Chains and it also provide security for the whole network.

Parathreads

Parathreads and Parachains are technically the same but are different economically. In Parathread, slot are leased out in a short time. Parathread helps projects to run differently on Polkadot. Another great advantage of parathread is that developers can test their network before purchasing expensiv e parachain slot.

Brridges

Will you  think of a new blochkhain platform working independently from already functioning and established blockchains network? Polkadot’s developer could not and that is why we have bridge  that will be the connector with other blockchains for example, EOS, Ethereum, Bitcoin which will give room for transfer of token across all networks.

Advantages of Polkadot

Scaling

can you recall what leads to the fork of Bitcoin-cash? This happens due to high transaction fees and the lightning network. Scaling is one of the problem of first  and second  generation blockchain because all the transaction will have to be process one by one but on Polkadot network all transaction can be process at once.

Specialization

You know all the blockchais support or have various features and need to exchange some in order to achieve the desire goals. But on Polkadot blockchain, Parachain will provide  dcentralized identity management, serve as file storage and another one for payment  by creating a stable coin.

Think of how  simple, secure effective a specialized blockchain can be, skipping all the code that is needed to deploy  a full-fledged chain. Polkadot also provide (Software Development Kit) SDK called ‘Substract’ which will make deploying and creating parachain a simple task. There will be no more writting code from scratch.

Governance

The government in the Polkadot community can be in a decentralized way. Polkadot governance is run in a transparent way. The community will be responsible to set rules for parachains actions, experiment ideas, and allocate slots. Governance will be perfected and that will make Polkadot one of the most reliable and flexible networks we will ever have.

Cooperation

One great benefit of Polkadot is that every chain does not run in Isolation, they communicate with one another. All bridges and parachains shared the features of the smartphone operating system. They can share information just the way we share on our phones. They can exchange any form of messages, not just token transfer. For example, a chain running stock asset trading can go to a chain providing synthetic asset trading to ask for a price.

Cross- chain Messaging Protocol(XCMP) allows parachains to send any form of messages. Polkadot provide an enabling environment for message transfer and this open way for actual interoperability.

No More Hardfork

Polkadot allows update without any hardfork. You know every software needed to be upgraded from time to time in order to fix a bug, to add new features? In all the older blockchain, to upgrade usually pose certain condition which is sometimes negative to the community to the extent that many leads to fork and some swap from one token to another. Take LitcoinCash fork from Litcoin, BitcoinCash fork from Bitcoin as example. Polkadot gives room for safe, easy deplorable and upgradable network environment without any problem.

Ecosystem

Since inception, Polkadot ecosytem is growing bigger because developers are seeing its advantages over the older blockchains. Project don’t need to be competiting with each other anymore. Polkadot network allows every project to work together so that we can have an independenct from centralized world.

Few of the projects that are already developed on Polkadot network are Kusama,Energy web Token, chains, Robonomics, Sora and many other projects.

Closing Remark

Easy scaling and interoperability are the next main steps in the blockchains industry. You know Bitcoin change people’s perspective about currencies and decentralization. Smart Contracts can be attributed to Ethereum.

Polkadot is definetely one big player that will change blockchain industry. Interoperabilty is what’s missing in the blockchain industry. Polkadot covers this and it will attract more beneficial projects and many unknown use cases of decentralized currencies and networks.

This piece was written by Stephen Voski — Binance Campus Ambassador.

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