If you have heard about the new cryptocurrency called Polkadot, then you’ve also probably heard rumours about how people see its potential to take over Ethereum’s place in the ranks. Along with ADA (Cardano), Polkadot has been dubbed by investors and speculators also as an Ethereum-killer. In this article, we’ll try and connect the dots of Polkadot as we venture in its quest to become the final word for Blockchain technology.
What Is A Polkadot?
The founder, Dr Gavin Wood, has been frustrated by how slow Ethereum’s development is, thus the beginning of his work on Polkadot. As of the moment, blockchains are grouped into two major categories: They are built for a specific purpose or function, such as Bitcoin, which was built to be a means of payment, or it’s more open and general that can be applied in various uses like Ethereum, which is used for creating DApps (Decentralised Applications).
Solving Blockchain Communication Issues
You can picture blockchain technology as separate islands of data, and there is no way to transport data from one island to another, and this is one of the primary issues blockchain has. With Polkadot’s technology, users can leverage the information that other networks possess and eliminate people’s concerns about blockchain communication issues via their multi-chain network that allows the transfer of information between blockchains. With that in mind, investors of Polkadot have seen this feature as a valuable function, and they are speculating that it will be used increasingly in the future.
A Top Contender In Scalability
Another issue that most cryptocurrencies are facing is scalability, as not all platforms can process transactions as fast as the consumers’ demands. For comparison, Bitcoin can process around 3-5 transactions per second, whereas Ethereum can process 10-15 transactions per second. However, despite the scalability issues those cryptos face, Polkadot remains the winner as it could process a staggering 1 million transactions per second.
Gaining Over 630% Since Its Debut
Back in 2020, Polkadot was launched with a goal to compete with the top contenders in the cryptocurrency market, but it was only traded at 2.76 dollars per coin at the time. At the time of writing, the market value of Polkadot became 20.11 dollars per coin, which resulted in an astounding increase of 630% compared to the previous year. Moreover, on May 15, the crypto has hit an all-time high of around 49 dollars, but it lost more than half of its value in the most recent price slump of cryptocurrencies. Investors are still not losing hope in Polkadot as they are still speculating that the crypto would make a comeback in the market because some people still believe in Polkadot’s long-term potential.
Much Easier To Build Customer Blockchains
With the technology of Polkadot, it enables users to build their own blockchain using a suite of functionalities while providing its users with the freedom to customise the blockchain to its fullest. The custom blockchain feature of Polkadot allows users to create one within minutes while providing access to interoperability, security, and scalability. Furthermore, Polkadot accepts multiple languages as it does not confine its users to write their own blockchain logic in a specific language.
Currently Facing A Stiff Competition
In this article, we have discussed Polkadot’s quest to become the final word for Blockchain technology, especially its an exciting project with a lot of potential. However, there are still a lot of cryptocurrencies in the competition, and there’s only a handful of crypto that is able to touch Ethereum’s level. In the long run, there’s a certainty that there will be more space for several other crypto players, it’s certain that there will be more assets in the cryptocurrency market as more and more are being developed each year.
Furthermore, if you are considering buying Polkadot, you can definitely get it from most cryptocurrency exchanges, but always be aware that all variations of cryptocurrency investments carry risks. For instance, the prices of digital assets can be extremely volatile, and no one can actually predict the rise and fall of its market value. Thus it’s not a good idea to invest in it with money you’re not ready to lose.
