‘’Polkadot empowers the individual against much more powerful corporate and state actors’’ – Dr. Gavin Wood, Polkadot Founder
You are well aware of the fact that we access millions of technological applications or web pages in our day-to-day lives. All of them are controlled by some of the large companies whose interests might differ from ours.
Sometimes, the users are forced to agree to their terms of services. Right? This eventually gives the overall control of the user data to those companies, sometimes, even against our own will. But, in order to access those applications, we tend to provide them with such information.
As the information or the data provided is transparent about our personal lives, therefore, it can be clearly stated that it is a ‘resource more valuable than oil’.
On the other hand, new technologies in the digital world, for instance, blockchain technology, have come up with something extraordinary. Inhabited with the concept of decentralization, it helps to build systems that provide individuals with sovereignty. There is no centralized control whatsoever.
Meanwhile, it will take a lot of time for this new technology to be accepted as is. We have to see the real-world deployment of the technology.
What Exactly is Polkadot?
Let us understand.
Polkadot is said to be the next-generation blockchain protocol. The entire objective is to integrate a network of purpose-built blockchains. Additionally, it allows them to be operational together at scale.
It helps to unlock the abundance of real-world use-cases as Polkadot allows every kind of data to be sent into any kind of blockchain.
Polkadot helps to amalgamate the top features from multiple blockchains. As a result, it paves the path for some new decentralized technologies to expand. Additionally, the provision of fairer ways for accessing the services through a bundle of providers and applications is a win.
As you might know, blockchain technology has proved to be an incredible invention in several fields. These fields include finance, governance, web decentralization, Internet of Things, to name a few. But, earlier there were some design limitations.
Design plays a major part in the success of any application. This factor might have been a setback as a lot of users hesitated to access these technologies.
On the other hand, Polkadot’s design has come up with tremendous advantages as compared to the previous systems. Take a look!
- Transparent governance
- Cross-chain composability
- Heterogeneous sharding
Now, let us dig deeper and understand the advantages of Polkadot in detail.
Advantages of Polkadot
Polkadot is a sharded blockchain. This means that it connects many chains together and binds them in a single network. It further allows to carry out transactions in parallel and transmit data between blockchains with guaranteed high security.
Besides, the unique heterogeneous sharding model helps to optimize each chain in the network. Furthermore, it can be used for a specific use-case.
Naturally, the more the number of chains and specializations, the more will be possibilities for innovation! Isn’t it?
Clearly, a single blockchain is not sufficient to support the gradual increase in the number of decentralized applications. Previously, the disadvantages of the blockchains included a lack of runtime specialization and limited throughput. Both the factors resulted in an impractical scaling when applied to real-world use-cases.
To overcome this, Polkadot helps to bridge several blockchains together into a one-sided network. Eventually, it helps in multiple transactions at the same time.
Additionally, a stunning new feature called ‘Nested relay change’ is ready to bloom. With this, Polkadot’s scalability will hike even more in the future. It will tremendously escalate the number of shards that can be added to the network.
Do you remember the time when we used to play video games that were shipped on printed circuit boards known as cartridges (used by NES and SNES)? The main use of cartridges was to leave no room for error.
Presently, our lives are heavily endowed with the up-gradation of applications, games, and browsers. The bugs are frequently fixed so that the users do not face any inconvenience.
Like all these applications, even blockchain needs upgrades. Although updating a blockchain is a far tougher task than upgrading an application. To conclude that, forking is required.
The main issue with a fork in the network is that it might often take months of work. More importantly, some of the hard forks can even break apart the whole community.
To revolutionize the whole process, Polkadot has come up with relief. The blockchains can be upgraded on their own without the need to fork the chain. Such forkless upgrades are initialized through the transparent on-chain governance system of Polkadot.
It helps to make the projects more agile, evolving, and adapting to the technology. The risk of the contentious hard forks is tremendously reduced.
As you know, blockchains are significantly known for their decentralized networks. Therefore, there is no intervention of any third-party, including that of the government. Individual stakeholders had no power to propose protocol changes unless they had connections.
Polkadot stands a bit apart. The governance lies with anyone and everyone who is the owner of DOTs, which is the native currency of Polkadot. If you are a DOT holder, you will be able to propose changes to the protocol or even vote on existing proposals.
The earlier blockchains had built 4 walls around their fort, which allowed no interaction from any outside sources. But the need for cross-communication and interoperability continued to rise. The main reason was the increasing number of chains for particular use-cases.
The cross-chain composability of Polkadot allows shards to communicate their functionality, exchange values, and welcome new innovative notions.
Moreover, Polkadot’s shards will be able to carry out interaction with decentralized finance protocols on external networks like Ethereum.
Now, let us understand Polkadot architecture in detail.
Polkadot helps in the amalgamation of several heterogeneous blockchain shards known as parachains, into one network. Polkadot relay chain builds a connection and provides security to these chains.
They also help to connect with external networks with the help of bridges. Earlier we talked about DOT. Let’s talk more about the native currency of Polkadot.
The DOT Token
As stated above, Polkadot uses its native currency called DOT. The DOT token fulfills 3 purposes:
- Staking: The good players are rewarded while the bad ones lose their stake. This way the security is ensured.
- Bonding: Through bonding tokens, new parachains are added. Removal of non-useful parachains takes place. This is also a form of Proof of Stake.
- Governance over the network: The complete control over the protocol lies in the hands of the token holders. Whereas, in earlier blockchains, the privileges and the controls were exclusively in the hands of the miners.
11 Best Polkadot Ecosystem Projects
After analyzing the core concept of Polkadot, it’s time to know about the best Polkadot ecosystem projects in detail. Here’s a quick look into the picks:
- Ocean Protocol
Meet the cousin of Polkadot – Kusama! Kusama was built on Substrate. It was also created by the founder of Polkadot, Dr. Gavin Wood.
Famously, Kusama is known to be the testing ground for the Polkadot projects. Kusama has contributed to the provision of assistance to several Polkadot ventures.
Before any project is deployed on Polkadot, it has to go through scanning under Kusama. It helps to check the projects and test the features that will be implemented in the Polkadot projects.
Safely, it can be said that the Kusama blockchain is definitely a trusted place for developers to experiment with new ideas for innovations.
Profoundly called as ‘Canary in the coal mine’ for the Polkadot projects, Kusama has undoubtedly delivered incredible performances.
In order to bridge Polkadot and Ethereum, you must opt for Moonbeam. It is undoubtedly a great platform for smart-contract deployment. The platform is not completely developed but there are a few features that you must know.
Moonbeam provides developer-friendly platforms which further help in building cross-chain smart contracts. It is used to assist dApps for future developments.
GLMR, Moonbeam’s token glimmer, is used for fee transactions while interacting with smart contracts. The Moonbeam project’s primary motive is interoperability and faster speed. It is scheduled to be launched in the early months of 2021.
Centrifuge is profoundly known as Polkadot compatible protocol. The financial asset with the core motive of decentralization serves as a gateway for real-world assets into DeFi.
Users have the option to take loans using real-world assets like mortgages, invoices, and other assets that are tokenized. There are two important components of Centrifuge that you must know about:
- Centrifuge chain
The centrifuge chain is an incredible example of blockchain which runs on the basis of the Proof of Stake algorithm. The native radial token helps in the performance of transactions on the centrifuge blockchain.
Talking about Tinlake, it’s a decentralized application, more commonly known as dApp, which is built on Ethereum. It helps to create and assist several customizable asset pools.
With the usage of the Centrifuge chain, real-world assets can be converted into non-fungible tokens. This serves the purpose of exchanging stable assets within the Tinlake dApp.
Polka starter comprises token poles and cross-chain. It is known as a fundraising platform and a crypto launchpad. The process of collecting capital for several projects from an interoperable decentralized environment has been made easier by this platform.
The native token of Polkastarter is the native POLS ERC-20 token. It has been a magnificent success. The token holders are presented with a bundle of advantages, including access to the pre-sale events.
Edgeware is another platform built especially for the Polkadot ecosystem. It is known as a self-improving smart contract blockchain. The initial coin offering, ICO, of Edgeware is the Edgeware token. It came into origin in the summer of 2019.
Known as the first smart contract parachain of Polkadot, Edgeware can further become the most feasible solution for the deployment of several smart-contracts over the blockchain network.
Certainly, it has to be one of the most frequently used projects as well as the main component of the entire Polkadot ecosystem.
If you are a gaming freak then Exeedme is an incredible gaming platform that is built to develop revenue streams for the customers accessing this platform. It is launched on Polkastarter. The native token used by Exeedme is XED token.
XED tokens are awarded not only to the gamers for winning several tournaments but also are achieved by all the participants.
With significant prizes, the players are given the opportunity to take part in high-level tournaments. XED tokens can also be used to unlock NFTs, which can further be used in-game.
Akropolis is known as one of the most innovative cross-chain decentralized finance protocols to date. It helps in facilitating under-collateralized borrowing and lending.
For a developer, it is extremely easy to build decentralized autonomous organizations, which will further help in scalability using the OpenZeppelin software development kit (SDK).
If you use the Akropolis path of protocol then you will be provided with liquidity to under-collateralized loans. Additionally, the Delphi platform helps to automate the yield in order to save and be assured of minimum risk.
In order to participate in DeFi, you can easily use this platform.
Kulupu’s consensus algorithm is Proof of Work. The platform is a self-governed blockchain system. With the combination of the Proof of Work consensus engine with the forkless upgrade, it is one of the first platforms to implement this feature.
Kulupu originated in September 2019. Here are some of its best features:
- Forkless upgrade.
- No pre-mining.
- Interoperable with Polka Dot ecosystem.
- Accessible to everyone with a peer-to-peer network that is permissionless.
Origintrail is an incredible open-source solution with the motive to form an ecosystem to build data connections among several stakeholders in supply chains. It aims at infinite scaling of data to be shared publicly and privately.
With the features of interoperability and interconnectivity, the platform ensures data immutability by using blockchain technology to ensure data integrity. The first real-time use of the Origintrail Project is in the food industry.
9. Ocean Protocol
Being a blockchain-based data-sharing platform, Ocean Control helps in connecting several data sources. For instance, governments, industries, startups, individuals, data, and AI experts. Overall safety and transparency of the data are guaranteed. There are no geographical boundaries.
One of the motives for leveraging Ocean Protocol includes unlocking data specifically for use-cases related to Artificial Intelligence.
The focus area is data scaling to allow a safe and secure marketplace for data and information. Storage of metadata and frameworks defining authenticity and integrity are able to serve as a service agreement.
Polkadex is a completely decentralized platform notably known for scalability. It is used in exchanging tokens for a peer-to-peer network. High frequency, lightning-fast transaction speeds, and high liquidity are guaranteed for supporting the DeFi applications.
The main aim of the Polkadex project is to diminish the complexities that occur in the blockchain. The trading features include storage, technical analysis indicators, and market data aggregation. Polkadex helps in escalating the throughput of trades.
With immense possibilities to expand further, Polkadot is here to stay. It is one of the most advanced blockchain technologies. With incredible innovative features, Polkadot is proving its credibility and expertise.
The future is bright and this is a mere beginning for Polkadot. We hope this article helped you understand the concept of Polkadot clearly and added value to your knowledge base.