A platform for creating DApps safe from downtime or tampering risk, ultra-fast and cheap transactions, Ethereum’s rival, a network with thousands of blockchain and a cryptocurrency that has gained much value and its investors are expecting a price leap; all these titles are descriptions of Polkadot.
Polkadot is the new generation of blockchain protocols. This project aims to create a single and integrated network of blockchains to overcome problems such as scalability and interactivity in cryptocurrency’s world. In other words, if blockchains are a solution for issues in current internet networks, then Polkadot is a solution for issues in blockchain networks themselves.
According to the developers, although Polkadot’s goal is not a blockchain for everything, it provides users with a coordinated blockchain network to easily interact with each other.
Let’s give an example to understand the importance of such a platform better. Imagine there was a hurricane, and your car is seriously damaged. An oracle, a middleware between blockchains and the real world, verifies the hurricane and store the data on its blockchain. Another platform then examines the damage on your car by sensors and store the data on its respective blockchain. The two blockchains will send reports to your insurance company, and the insurance company’s blockchain calculates the compensation and transfer it into your bank account. All this process is done automatically and with no need for human inspectors. However, the connection between different blockchain requires a network, Polkadot.
The Polkadot’s cryptocurrency is DOT, and its main usage is to pay the network’s costs and to decide about the network’s future. In fact, each DOT owner gains voting right for the network’s future decisions. Like Bitcoin, Ether, and other cryptocurrencies, investing in DOT is investing in the future of the network. The DOT’s value fluctuates based on supply and demand and positive expectations for the network’s future. At the time of publishing, DOT is amongst the top ten valuable cryptocurrencies.
Although DOT is the native cryptocurrency of the Polkadot network, everyone can create their own blockchain and cryptocurrency on top of this network and benefit from the network’s shared security model.
According to Polkadot’s developer team, this project intends to aid the creation of DApps for real-world applications and facilitate access to DApps for all users by gathering the best features of multi-purpose blockchains.
In contrast to Bitcoin and hundreds of other cryptocurrencies, Polkadot’s supply is not based on mining. Its blocks are distributed in a specific way, which is very similar to that of stock-proof.
In this and the next two articles, we will provide you with useful information about Polkadot’s network, its advantages over other blockchains, and how it works.
Polkadot; A key to Blockchains Problems
When we talk about the internet and technology, we say that we use them in our daily life. But do we, really? Are we consuming technology, or is it consuming us? It seems that the internet has become the back yard of Tech Giants, and consumers have the smallest share of it. We are using different technologies every day that are provided by Tech Giants; Amazon, Google, Apple, Facebook, and Microsoft. These companies’ interests often conflict with those of their users. We, users of Tech Giants’ applications, have no choice other than accepting their terms and conditions, which we usually accept without even reading them. These terms and conditions allow the Tech Giants to take control of our data and content we generate.
On a big scale, the data will give a clear image of our personal life, which is critical. The interesting point is that we provide those companies with this information for free because we have no other choice. The only option we have in this centralized world is trust, a trust that our information won’t be lost, stolen, or misused.
However, the late innovations in open-source and decentralized technologies such as blockchains and cryptocurrencies have proven that we can create a network that puts personal ownership in priority to centralized governance. Therefore, there is no need for intermediary organizations or and accepting their compulsory terms and conditions. But this technology is in its early stages of development and there are challenges for its public acceptance.
Bitcoin and its spin-offs (Bitcoin Cash, Litecoin, and Bitcoin SV) are considered the first generation of blockchains, and smart-contract providers such as Ethereum are the second generation of blockchains. Polkadot and similar projects like Cosmos and Cardano are pioneers of the third generation of blockchains.
The first generation of blockchains’ purpose was secure storage and transferring information in a decentralized and peer-to-peer form. The second generation of blockchains then appeared to solve real-world problems such as decentralized finance, IoT, true ownership, document management, interception of goods, decentralized storage, and decentralized cloud computing. However, the limitations of these systems have prevented their widespread acceptance amongst users. Polkadot’s goal is to resolve the problems and limitations of current blockchain networks.
The truth is that no blockchain can achieve all goals and applications correctly and safely on its own. For example, let’s imagine the future of Ethereum 2.0 future. We assume that this platform will host billions of smart contracts that each one of them is developed for a specific application. It is clear that this platform cannot handle the enormous amount of information and transactions in the future decentralized world, not even by increasing transaction speed, as planned by Ethereum 2.0. Now you can understand the purpose of developing Polkadot better, a project that intends to gather different blockchains under one roof and provides the best platform for decentralized projects.
The Polkadot’s ultimate goal is to become the internet of blockchains, blockchains that want to connect seamlessly integrated with each other.
Polkadot has made it possible to transfer any kind of data between different blockchains, hoping that this option promotes the use of blockchains for various applications in the real world.
In our future articles, we will provide more details and information about the Polkadot blockchain.