Polkadot(DOT) - The Rising Ecosystem on Blockchain
Polkadot, which is a fast-rising blockchain platform that has grown in prominence since it entered into the cryptocurrency market. Polkadot, which is also known by its short name “DOT.” This development has led to its price growing by more than 200%. This goes to show how well DOT is doing in the crypto market. This tremendous achievement has not come as a surprise to the experts, however. A highly ranked cryptocurrency fund in Asia, Spartan Black has predicted that DOT has what it takes to keep up its momentum and become one of the top 3 rated cryptocurrencies in the crypto world in the not too distant future. Asides from the favorable review by the Spartan Black, other analysts have also predicted that the lofty heights already reached by the Polkadot blockchain protocol are only the tip of the iceberg. It is believed that the protocol is still very much far from reaching its peak.
The groundbreaking heights reached by the DOT ecosystem within the relatively short timeframe have led people to ask questions about how they are able to achieve so much in very little time. This kind of success makes the platform more than a mere coincidence. A Success of this magnitude can only result from a systematically planned mode of operation and a perfect execution.
Polkadot was created by Gavin Wood, who has played a massive role in the success of Ethereum Network since it’s inception. It shows that there are capable hands in the Polkadot team.
A couple of analysts have tried to figure out the possible reasons for the DOT ecosystem's rapid growth, and they successfully came up with some. Some of the reasons are discussed below.
1. Not Being A Direct Competitor With Ethereum
It is no news that Ethereum is by far the most significant smart contracts blockchain protocol by a vast margin. It is making any blockchain protocol coming into the market with the aim of being in direct competition with Ethereum. Ethereum is valued at $43 billion, and DOT, which comes directly after Ethereum, has a valuation of $5.6 billion. The valuation difference shows the gap between Ethereum and other blockchain protocols.
The Polkadot blockchain platform has been able to avoid being in competition with Ethereum by making it possible for an assortment of blockchain networks to be on their platform. This singular act has made their platform very different from that of Ethereum. Hence, boosting the chances of Polkadot existing for a long time.
This is regarded as the most significant reason for the rapid growth and success the DOT platform has enjoyed by experts and analysts.
2. Being A Sharded Multichain Network
The fact that Polkadot is a multichain network has also contributed to its quick ascent to the top echelons of blockchain networks. Being a sharded multichain network means that the platform is able to process many more transactions with higher speeds. A single blockchain can only process a limited amount of transactions at a given point. This helps to avoid the overcrowding problem consistent with legacy networks that can only process transactions one after another. The Sharded chains found on the Polkadot platform run the system in parallel. That is why they are called “Parachains.”
3. The Presence Of Specialized Chains
The fact that the DOT platform is a multichain system has already been established in this article. These multiple chains perform different functions to facilitate the smooth running of the network. No blockchain is a jack of all trade, performing all the numerous functions needed to run a blockchain protocol effectively. Some chains are designed to be responsible for file storage; others are designed to be responsible for all processes that have to deal with identity management. Other chains are designed to take on different roles with no single chain performing more than one function.
4. Built To Interact And Cooperate
The fact that the DOT platform was built to allow for all networks and applications in it to interact with one another and share information effortlessly. This will enable users to transfer data from one chain to another easily. The ability of the system to transfer data between chains helps to Link a chain within the Polkadot network with a chain that will provide real-world data, making the network connected to the outside world. Most systems that have come before the Polkadot network have always worked in total isolation, which is one advantage the DOT network has over them. Also, the DOT blockchain protocol does not depend on centralized service providers.
5. Easy to Upgrades
Just like most systems and applications in the world today, there is always a need for upgrades to improve functionality. The same applies to a blockchain protocol network. With older chains, upgrading the system is difficult and takes a lot of time, which could run into months. The Polkadot system tackles this problem by making its upgrade relatively easier and in very little time, as it does not need to create separate transaction histories or split a community into two. Making the Polkadot platform always has the latest blockchain technologies available to it almost as quickly as it is created without having to wait for months.
6. Offer Freedom
The Polkadot blockchain protocol offers total freedom to communities under the network. This freedom is like no other provided by any other blockchain network. Communities can self govern themselves. This means they can customize their blockchain to their taste, try new ideas, and upgrade their blockchain governance to suit their present needs.
These features are some of what the DOT ecosystem provides users that have contributed to its rapid growth in all quarters since it became available in August 2020. Other blockchain platforms have seen the need to tap into the innovative features offered by Polkadot, and they have duly ensured their platforms are linked to the DOT platform.
The experts and analysts have confirmed that this network will continue to grow. Its growth has so far eclipsed that of ChainLink, which was dubbed “the Ethereum killer.” Polkadot is not here to kill Ethereum but to coexist with it in a healthy symbiotic relationship.
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