Disclaimer: The datasets shared in the following article have been compiled from a set of online resources and do not reflect AMBCrypto’s own research on the subject.
A brainchild of Ethereum Co-founder Gavin Wood, Polkadot is one of the leading blockchains in the world right now. With a Proof-of-Stake consensus mechanism, it is unique in supporting multiple interconnected chains. In fact, one can argue that its interconnected nature has helped the project earn a significant number of users over the last few years.
Shawn Tabrizi, lead developer at Polkadot network, talked about the possibility of “a cohesive, multi-blockchain future” during an interview with in February 2022. Back then, he also stressed on the need for preserving the fundamentals of data privacy in the Polkadot ecosystem.
Before its launch in May 2020, Polkadot had raised over $144.3 million in October 2017 through the Web3 Foundation in its initial coin offering (ICO) itself. In August 2020, its native crypto DOT’s price reached $6.30 and kept moving between $4 and $5 throughout the rest of 2020.
The Polkadot infrastructure supports two kinds of blockchains, relay chain and parachains.
The central blockchain of the Polkadot infrastructure is the Relay Chain where validators provide consensus for a transaction. The Relay Chain is built in a way so as to coordinate the management and operation of the whole Polkadot infrastructure, with minimal functionality in regard to other applications.
A parachain, on the other hand, is an application-specific chain on the Polkadot infrastructure that is validated by the validators of the Relay Chain itself. Since these chains run parallel to the Relay Chain, they are called parachains. It is here that developers can develop both applications and their own blockchains. All of these parachains can communicate with each other on the network. In short, this cross-chain technology facilitates the transfer of both assets and data across blockchains. Users therefore don’t have to depend on a particular system for all of their cryptocurrency transactions.
Polkadot parachains can easily communicate with other blockchains existing on Ethereum and Bitcoin networks. The blockchain also provides better control, flexibility and security, reducing the risk to its miners due to unauthorized validators. Acala, Moonbeam, Clover, Astar and Parallel are some of the oldest projects running on the Polkadot network. The blockchain is growing rapidly and seems to promise a reliable future to its users.
Wood believes that from a Web 3.0 perspective, the inter-chain blockchain protocol of a network like Polkadot will connect different technological threads into a single economy and movement.
The ability to communicate without the need to trust each other is the cornerstone of the Polkadot system. The parachain auctions of Polkadot can truly build a democratic internet space as decentralized or distributed network architectures form the infrastructure of the online world.
In May this year, a Polkadot upgrade enabled parachain-to-parachain messaging over XCM. The XCM format is aimed at helping the Polkadot network become a fully interoperable multichain ecosystem. XCM allows communication not only between the parachains themselves, but also between smart contracts and decentralized applications.
As a blockchain running on the PoS consensus mechanism, Polkadot is one of the most eco-friendly blockchain cryptocurrencies.
The PoS method is more sustainable than the PoW method as there is no race to mint more coins.
As per a new study by the Traders of Crypto, Polkadot, along with Cardano and Algorand, are among the most environment-friendly cryptocurrencies. Polkadot is the fourth most eco-friendly currency in terms of its CO2 emissions (50 tonnes annually).
A Forbes report quoted Bilal Hammoud, CEO and founder of National Digital Asset Exchange, “Polkadot’s mission is to securely allow Bitcoin and…
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