(2021-05-18) Forkast What Is Polkadot And Why Is It One Of The Hottest Blockchains Right Now

Forkast: What Is Polkadot And Why Is It One Of The Hottest Blockchains Right Now? In a blockchain ecosystem dominated by Bitcoin and Ethereum, Polkadot — which launched only a year ago last May — is already establishing itself as a next-generation blockchain.

a growing number of projects are being squeezed out by the Ethereum network’s congestion and high gas fees. This is where new rivals like Polkadot come in.

In the current universe of over 4,000 cryptocurrencies, Polkadot’s rise has been stratospheric

1. What is Polkadot?

a platform that allows different blockchains to transfer value in a trustless fashion and share their unique features while using one secure channel. Gavin Wood sees the Polkadot network as the answer to Ethereum’s 2.0 network upgrade currently under development.

2. How Polkadot formed

Polkadot began with a white paper that Wood published in 2016. Wood, a former CTO of Ethereum, is reputed to have written Ethereum’s Solidity programming language during his stint with the Ethereum Foundation.

Working closely with Ethereum’s co-founder Vitalik Buterin in 2015, Wood reportedly became dismayed when the proposed start for Ethereum 2.0 development was delayed.

Wood and Jutta Steiner, former head of security at Ethereum, also co-founded Parity Technologies, which was tasked with continuing Polkadot’s development.

Polkadot was birthed from precursor project Kusama in 2019 as an unaudited canary network. The canary feature (think “canary in the coal mine”) helps the development team uncover any major concerns before they’re launched on the mainnet.

Polkadot was first launched in May 2020 as a proof-of-authority (PoA) protocol. Its governance was controlled by a single Sudo (super-user) account. After launch, validators joined the network to participate in its consensus protocol.

The network quickly jettisoned the proof-of-authority consensus algorithm and adopted the well-tested proof-of-stake (PoS) protocol on June 18, 2020.

With its blockchain network secured by a decentralized community of validators, its super-user account was abandoned in July 2020, with the network moving governance into the hands of its DOT token holders. This paradigm shift saw Polkadot achieve its goal of becoming a decentralized platform.

3. Polkadot’s native token (DOT)

The utility token provides governance, bonding and staking functions in the network.

The governance function allows DOT holders to exercise control over the Polkadot network

Further, DOT plays an active role in securing the network

The third role DOT plays in the network is the ability to add new parachains by holding DOT — which is known as “bonding.”

4. Polkadot’s architectural technology

Polkadot operates differently from the Ethereum network in its drive to become a heterogeneous blockchain network. It uses parachains and parathreads, which link to the main Polkadot Relay Chain. The chains also connect to external networks through bridges in the platform

Polkadot comprises three types of chains.

Relay chain

It’s the main blockchain in the network

The Relay Chain runs very minimal operations at its interface with the mechanism, parachain auctions, and nominated proof-of-stake (NPoS). Its lighter functionality base affords the Relay Chain greater speed

Parachains

Parachains are standalone, independent blockchains hosted on the Polkadot platform. These custom blockchains are built to achieve specific purposes and address specialized challenges.

Parachains are granted the freedom to develop their own governance systems while using Polkadot’s shared security feature.

Parathreads

Parathreads share the same functionality as parachains, with a few differences. Parathreads are parachains built on a pay-as-you-go model, rather than by leasing a slot. Parathreads are primarily suitable for projects that don’t require continuous access to the network.

Polkadot’s other features include:

Bridges

Bridges fulfill Polkadot’s interoperability goal. This important feature lets Polkadot connect and communicate with external networks like Bitcoin and Ethereum

Nominated proof of stake (NPoS)

Substrate framework

Substrate is a software framework developed by Parity Technologies to create custom blockchains. Polkadot uses a substrate framework as part of its underlying technology

5. Why do some investors believe Polkadot can rival Ethereum?

Ethereum’s overwhelming popularity, however, has also led to network congestion, high gas fees and dissatisfied users seeking alternatives. The Ethereum 2.0 upgrade is expected to solve these issues when it launches, but Polkadot is thought by some to present a more viable and scalable solution.

Polkadot’s vision for the future

mission of developing a blockchain network that operates in a trustless fashion for verifying data and value transfers in its quest for a decentralized internet.