Polkadot is one of those projects that has taken the crypto community by storm. It is a very interesting project, and the token’s market cap has exploded very quickly. What is it that makes people go bananas over this project? Let’s find out.
The Concept Explained
At its core, the Polkadot ecosystem is designed to provide a next-generation blockchain protocol focused on interoperability. This aspect is crucial to advance the industry as a whole, yet very few solutions exist to tap into other ledgers. Polkadot wants to change that narrative by creating a unified network. This will, in turn, have an impact on the Web 3.0 approach. Empowering individuals rather than the technology companies and ISPs around the world is the next big step.
It is also worth noting the project borrows some ideas from other blockchains. It is perfectly fine to take existing concepts and improve upon them further. Gaining a fundamental advantage can help this project succeed in the long run. There have been numerous solid ideas in the past, and combining them into one solid ecosystem will provide significant advantages.
Addressing Scaling Concerns
One issue holding back many blockchain is their lack of overall scaling. Processing a limited number of transactions or data is a significant bottleneck. Polkadot, as a sharded multichain network, can process information on different chains in parallel. Not only will this increase the overall scalability, but also fosters future adoption of blockchain technology. All sharded chains in the network are known as parachains, because of their parallel nature.
Specializing for Different Solutions
It is evident that no blockchain in the world can effectively handle everything. There is also no point in trying to do so, as this is not what the technology was designed for. A better approach is to leverage multiple chains in parallel. In such a situation every chain can fit a specific need, and not worry about anything else.
Polkadot allows for every individual chain to focus on its specific use case, improving the overall service provided. This is made possible by leveraging the Substrate framework. Anyone exploring this multi-chain network can customize their own deployed chain in an efficient manner as well.
With so many benefits to building on Polkadot, there will eventually be numerous communities. Ensuring these can both work together and independently whenever necessary, every community can self-govern their network. Moreover, these communities also hold a stake in Polkadot’s network governance as a whole. Such an approach allows for tremendous potential and customization overall.
Upgrading is Possible
At its core, most people don’t think of a blockchain as something that can be upgraded easily. In fact, it is a technology that requires constant attention. Polkadot allows for upgrades that require less invasive solutions compared to a hard fork. As crypto enthusiasts know by now, a hard fork can trigger a chain split. It is crucial to avoid those altogether, regardless of which use case one aims to address. Offering an elegant solution removes that potential bottleneck from the equation as well.