Polkadot has been attracting a lot of attention recently. What about checking what the famous Polkadot is and whether it has any future in the cryptocurrency world?
Let’s Start with Some History
The Polkadot project was launched in 2016 with the release of the project’s whitepaper. However, the mainnet went live just in 2020. However, now, the coin is available on the majority of exchange platforms of Alligat0r.
The goals of the project are quite ambitious. Polkadot is providing a network, or rather an infrastructure to connect different blockchains in a single network and to provide a stable and advanced foundation for Web3, the internet of the future. Now, the coin is available on many exchanges, also, you can swap ETH to DOT on Alligat0r profitably, without excessive fees, and without time-demanding registration or KYC procedures.
Polkadot Addresses the Following Issues of the Existing Projects
At the moment, different blockchains operate as separated units. Communication between different blockchains is complicated or impossible. From this, the main issues arise.
Isolated blockchains are limited to processing a specific number of transactions per second only.
Polkadot offers a multi-chain infrastructure where many transactions can be run in parallel. It allows eliminating the bottlenecks that would arise otherwise. So, the project serves perfectly to boost the scalability of every network that connects to the Polkadot infrastructure.
Specialization is another issue that separated blockchains face. Blockchains are built for specific purposes. Features can be added with the utmost care only. Every added feature means the increased risks of bugs and erroneous code.
If blockchains can communicate, they can be built for their specific purposes. If additional features are needed, they can be outsourced to other blockchains, those that specialize in the needed features.
The Polkadot network efficiently solves such an issue as interoperability. Blockchains attached to the infrastructure can exchange information directly one with another. There is no need for any service provider to do so. This feature allows blockchains to communicate not only one with another but with external data sources, too.
The Work Principle
The project is similar to the ETH 2.0 network. The shards in Polkadot are called parachains. the parachains run simultaneously. So, transactions are processed in parallel instead of being processed sequentially.
Parachains are individual blockchains. Each parachain runs on its own ledger, adds its own transactions, and creates its own blocks.
The main chain in the network is called the Relay Chain. The Relay Chain links all the parachains into a single network. The Relay Chain provides security guarantees by validating blocks of parachains.
For those blockchains that use their own consensus mechanisms, for example, the Bitcoin blockchain, the network offers so-called bridge-parachains. They offer such blockchains two-way compatibility with the network.
The time of Polkadot hasn’t arrived yet because the technology for which the project offers solutions hasn’t developed properly yet. In the long-term though, Polkadot might become the foundation for completely new technologies and approaches to information handling.