- In this article, we will try to give you the answer to the question of what is Polkadot. Let’s take a detailed look at Polkadot (DOT), which is among the top 10 in the cryptocurrency world.
In this article, we will try to give you the answer to the question of what is Polkadot. Let’s take a detailed look at Polkadot (DOT), which is among the top 10 in the cryptocurrency world.
What is Polkadot?
Polkadot’s ultimate goal is to become the new internet of blockchains that will communicate with each other seamlessly. If there are already many great platforms like Ethereum or Cardano, you might ask why we need something like this.
Polkadot’s creators believe that no blockchain can serve all purposes quickly, securely, and efficiently.
Imagine the future Ethereum (with ETH 2.0 with improved transaction speed) hosting billions of smart contracts serving all different applications. Such a situation will not only be effective, but may not yield the expected yield.
So welcome to the world of the Polkadot network, a project that tries to bring all the different blockchains under one roof and provide the best platform for any project you can think of.
What is Polkadot trying to do?
Polkadot is a next-generation blockchain protocol that greatly simplifies cross-chain communication and interoperability by bringing multiple blockchains into a single network. This network is secured by a GRANDPA consensus algorithm designed specifically for Polkadot.
The most critical parts of the Polkadot network are Relay Chain, Parachains, Parathreads and Bridges. We’ll talk about each of these in more detail in the following section.
Relay Chain is the backbone of the Polkadot network and is the main communication center between networks. Validators in this chain accept blocks on the entire parachain, thus providing security for the entire network.
Parachains are independent blockchains that will provide chain-specific features to the Polkadot network and run on the Relay Chain.
Each Parachain will serve a specific purpose in the network – have a Parachain that will bring a decentralized energy industry to a fine-tuned chain for smart contracts, another chain or network that will provide a fixed money for payments between chains.
Each parachain will be protected by nodes called collars that are responsible for generating chain blocks. Parachains will also benefit from a shared security model provided by Relay Chain, so they will be secured against 51% attacks or the like.
However, there will only be a limited amount of Parachains in the network (and this number will increase in the future). For this reason, there is a public auction system in which Parachain candidates will have to compete to get their own vacancies.
Parathreads are technically very similar to Parachain, but they are very different economically. As we said in the previous paragraph, Parachains have to compete in auctions to be a part of the network. On the other hand, the parathread space can be rented instantly and only for a short time.
This will provide a different way of how projects are run in Polkadot. Some of these projects may benefit from experimenting with the network before purchasing a vast parachain loophole, while others may run as parathreads before winning an auction for a loophole.
Can you imagine a modern blockchain platform running bridges in complete isolation from other networks already established? The authors of Polkadot certainly couldn’t do that, and that’s why we have a special parachain variant called a bridge.
The bridges will connect other blockchains currently running to the ecosystem (such as a BTC or ETH) and allow money transfer between Polkadot and external networks.
Do you remember all the controversy in the BTC community that eventually led to the emergence of Bitcoin Cash and the Lightning Network “still hated by many”?
Let’s open the question from another angle. Are the fees for transactions on Ethereum skyrocketing? All of these issues stem from the scaling issues that 1st and 2nd generation blockchains have. Some of the scaling issues arise from the fact that every node in the network must process all transactions one by one on most of the blockchains.
But this is not the case for Polkadot, parachains got their name from the fact that they will run and generate their blocks in parallel and the rest will be taken care of by validators. This greatly increases the speed of the network. For those who want to see the numbers – according to the last comparison, even a simple application without a parachain can reach 1000 tx / s. However, once the parachains are fully functional, we can go up to 1,000,000 tx / s.
Considering most blockchains, they all try to support a variety of features, and they all have to make some compromises to achieve this. However, in Polkadot, a parachain that will serve as file storage, decentralized
It is very easy to distribute it to another chain to enable payments across the entire ecosystem by creating another chain to manage and stable money.
Imagine how effective, simple, and secure private blockchains can be, bypassing all the code normally required to deploy a fully structured chain. Also, Polkadot provides a simple SDK (Software Development Kit) called Substrate that will make it easy to create and deploy parachains.
No more writing code from scratch!
Collaboration All parachain and bridges can share key features of the phone’s operating system, such as apps on a smartphone. One of the biggest benefits of Polkadot is that parachains will not work alone, but will be able to communicate with each other. And not just with simple money transfers, they can actually exchange any kind of message.
For example, a chain that provides synthetic asset trading (stocks or commodities) might go to a different parachain-powered oracle and request a stock price.
The Cross Chain Messaging Protocol (XCMP) allows parachains to send messages of all types. The shared security model with XCMP provides a reliable environment for a verifiable message transmission that finally opens the door to true interoperability.
The Polkadot community can manage the network in a completely decentralized way. The process of ensuring full management is still ongoing. However, Polkadot will be fully transparently run by the community in the future.
The community can then set rules for parachain actions and gap count and basically try out ideas that come to their mind. Management itself can perfect over time, making Polkadot one of the most flexible networks on the market.
No more hard forks!
Like any other software, blockchains should be updated either for security reasons (bugs can always get into your code) or when the community votes to add new features.
Normally, most blockchains require a hard fork, especially when making significant changes to the network (such as a Consensus protocol upgrade).
Unfortunately, this process can sometimes give the community a hard time and even lead to network disruption, as in the case of Bitcoin Cash.
Polkadot allows the gradual refinement of the network, allowing parachains and even its own network to be updated completely without any hardforks. When we connect all the dots (this is what is meant) it makes it clear that Polkadot is taking a completely new approach to decentralized network development.
Polkadot is not trying to develop the entire world on a single blockchain, but instead provides a secure, reliable, easily deployable, and upgradeable environment where everyone can deploy their own chain and benefit from collaboration with others.