- Polkadot (DOT) climbed to 6th place in the cryptocurrency market cap, ahead of BCH, and gained 62% in December. The rise is based on Polkadot’s impressive growth since it officially started trading in August 2020. Polkadot founder Gavin Wood published his opinion on the year on December 30th.
Polkadot (DOT) climbed to 6th place in the cryptocurrency market cap, ahead of BCH, and gained 62% in December. The rise is based on Polkadot’s impressive growth since it officially started trading in August 2020. Polkadot founder Gavin Wood published his opinion on the year on December 30th.
Polkadot is preparing for 2021
2020 has been a busy year for the Polkadot community as it consolidates partnership with leading blockchain oracle project Chainlink. Polkadot held its first live event at Polkadot Decoded on December 3; here, prominent figures in the blockchain space gathered to discuss Polkadot’s long-term mission statement and upcoming features.
Among these features is a Polkadot-based bitcoin version called PolkaBTC that allows Polkadot users to interact with the evolving decentralized finance (defi) movement without leaving familiarity with the Polkadot network. The need for a defi-compatible version of Bitcoin can be exemplified by the number of Bitcoins that have already been transferred to other blockchains such as Ethereum. According to WBTC.Network, the combined value of Wrapped BTC in Ethereum currently exceeds $ 3 billion – that number has more than doubled since October alone. In fact, Wrapped Bitcoin (WBTC) currently has the 13th largest market capitalization, which constitutes the desire of bitcoins to interact with defi.
One chain that connects it all
Polkadot’s reputation as a possible “Ethereum Killer” stems from its goal of creating a heterogeneous blockchain network that allows content creators to tailor their chains to their specific needs.
Official documents from the Polkadot team make it clear that they do not believe that the crypto space will be reduced to a single blockchain project. This is why Polkadot strives to be a blockchain that can connect with all other blockchains, making it a one-stop-shop for cryptocurrency users. As stated in the Polkadot lightpaper, the project aims to bring all types of blockchain services under one roof:
Polkadot is designed to connect private and consortium chains, public and unauthorized networks, oracles, and future technologies that have not yet been created.
When Germany’s energy innovation organization DENA revealed that it was building a decentralized database with Energy Web, a clue was given to what this future might look like. The blockchain framework he uses?
Projects built on the Polkadot network
In early December, the Polkadot network made a new addition to its ranks with Ampleforth (AMPL) integration. Ampleforth is a unique cryptocurrency project that hit the scene in the summer of 2020 and uses an algorithmically tuned flexible supply mechanism. AMPL source automatically adjusts when price fluctuates. Token holders hold a share of the overall supply, rather than a fixed number of tokens as with other cryptocurrencies. The long-term goal is to balance the AMPL price at a fixed $ 1 to create a currency that is immune to wider market volatility.
The first tests performed on the Polkadot test network in April 2020 revealed some very interesting results in terms of processing capacity and speed. At the same time, one of the founders of the Ethereum project, Polkadot’s creator Dr. According to Gavin Wood, the Polkadot test resulted in a constant speed of 1000 passes per second. Comparing this to 15 transactions per second for Ethereum or 5 transactions per second for Bitcoin, the importance of this figure becomes clear.
“More than 200 projects have been funded across grant schemes and treasury throughout 2020,” Wood wrote in his year-end retrospective.
Since it started with governance a few months ago, the Polkadot treasury has financed 23 proposals for a total of 118,465.63 DOT. Around the year Kusama went live, meanwhile, his treasury financed 40 proposals that made a total of 62,222.92 KSM. All of this is part of the Web3 Foundation’s ongoing grant program, in addition to the $ 4.1 million paid in 145 bids.
Where is next for Polkadot?
Moved to 2021, Polkadot is one of the few new cryptocurrency projects appearing in an upward orbit. Its rapid rise to the top ten market capitalization is an unheard of success since Chainlink (LINK) entered the top ten projects.
A particularly notable metric that signals well for the project is the rate of attracting developers. While Ethereum still retains the largest share of developers in the blockchain space as reported in December, the initial adoption of Polkadot occurred at a faster rate than Ethereum, as witnessed by a much steeper early growth curve.
As a result; Polkadot, a product of the Swiss Web3 Foundation, aims to create a completely interoperable, decentralized and user-friendly internet.