Polkadot Blockchain Development Trends in 2023
Polkadot represents a promising and actively developing project, a full-fledged ecosystem with a heterogeneous multi-chain blockchain structure. The development is distinguished by the fact that users can create their own blockchains based on the network, adding unique features, properties, functions, determining the amount of commission but most importantly to connect existing ones to work in parallel.
In 2017, a token sale (ICO) was held on July 30 which was required for the project to raise funds for further development and growth. Payment was made in ETN and investors could receive any number of ecosystem tokens at 29 cents each. The total issue was 10 million tokens, 50% of which were tendered.
The coin issue was planned for Q3 2019 but not all investors were willing to wait 2 years and their loyalty fully paid off. Investors could get a return of over 8,000% in dollar terms from the Tokensale through 2021, 1,400% in ETNs and 1,000% in VTCs.
Auction process was not perfect itself, as there was a bug in Parity's wallets that caused $150 million to be frozen. 100 million of which were funds from investors who bought DOT cryptocurrency. A smart contract bug caused a hacking attack, which resulted the destruction of the contents, along with the assets. Network executives have promised to fix the problem with compensation, saying that these circumstances are useless but instructive for them.
For example, the Ethereum 1.0 network lacked sufficient bandwidth until the transition to 2.0 was made. Transaction fees were $10-$50, which precluded full trade transactions and the use of blockchain as a new type of information base.
Polkadot was developed by the Web3 Foundation in the guise of an open-source decentralized network. The main task is to create the possibility of interconnection between different blockchains, to launch smart contracts, and DApps.
Polkadot and its structure offers a number of advantages over other blockchains at once:
Polkadot is segmented, scaling as the number of parachains increases. Relay circuits make adjustments to the validity of the network and there is the possibility of dynamic addition, deletion and stopping of parachains. Community quickly receives alerts on violations, penalizing such participants.
To work with other blockchains, such as Ethereum or Bitcoin, Polkadot shards can connect using bridges. In this way, VTC owners are able to burn them, receiving an equal equivalent in PolkaBTC and vice versa.
The architecture of the project is different from Ethereum, using 4 levels of protocols at its core and each type of chain is needed for a specific role:
BABE is Blind Assignment for Blockchain Extension. This is an element of blockchain production with a random determination of possible validators. Blind Assignment is done for each slot with a life cycle of only 6 seconds. Any slot may have more than one validator at a time or no validators at all. Some validators, all the time, build up a parallel fork which disconnects after finalization. Such a mechanism gives a constant consensus without pauses and the probability of a network deliberate attack.
GRANDPA - GHOST-based Recursive Ancestor Deriving Prefix Agreement. The technology is used to fully finalize the Polkadot Relay Chain. BABE will continuously build exclusively on GRANDPA-approved circuits. The work is done in a partially synchronized network model and for normal operation it is enough to satisfy the honesty of the 75% validators. The main difference is that the model receives agreements on chains rather than blocks, positively affecting the speed of transactions, even in the case of long splits or other disruptions in the blockchain.
Not every network user can provide constant access to a server or PC to perform validator tasks. If there are free network tokens on the balance, you can easily nominate them to a particular validator and keep track of the increase in coins.
It is important to choose carefully. Improper node behavior can lead to the loss of nominator coins. Any stacking is frozen for a certain amount of time after placement under validation and you need to calculate this factor. Even on request, the return of coins by the validator may not be before a month.
Needed to maintain parachains, collect information on transactions. Data is transmitted to relay chain validators for further validation. It is important for the collators to keep the full node functioning by keeping the parachain and the relay blockchain in sync all the time.
This network element monitors the behavior, if it is not compliant, the data is passed to validators. Collators can act as fishers, earning additional profits in the native token. Coins are withdrawn from consensus violators in favor of fishers.
Many blockchains existing in 2022 can connect in the Polkadot ecosystem using bridges. Creating such a connection for familiar blockchains is a challenge. Connected networks can retain their own consensus algorithm, security participants, while enabling convenient data exchange with Polkadot parachains.
The most obvious benefit is the pool of security achieved through using PoA consensus. Developers don't have to think about creating a group of miners or validators to protect the network with the pool of validators and nominators performing these tasks themselves.
As of 2022, the list of parachains (Polkadot Network substrates) includes more than 100 projects.
The founder of the Polkadot project is Gavin Wood, who co-founded Ethereum. In 2016, Wood presented documentation on the development of the Polkadot Protocol describing the basic concept of the next-generation network. The main parameters are next-generation sharding, multiple circuits, and the PoS algorithm.
Web3 Foundation is a corporation developing a new platform, the decentralized Internet. The list of tasks included:
The base capitalization was $5 billion but it grew steadily. By 2020, it was $20 billion. The first 5 million coins were sold at the ICO for 29 cents. The listing on the exchanges began with a prime of $3.
As a reward to validators, token growth of 150 million coins is planned annually (inflation of about 10%).
The future trend of the native token and the ecosystem as a whole, depends only on the work of the community and users of the network. The creators have given every opportunity to unlock the potential of any startups:
The main functions of the network's native token are:
Like any project, blockchain and development, Polkadot has a number of advantages and disadvantages compared to other networks.
The ecosystem combines several factors:
The publication's analysts themselves noted great interest in the project among developers. They are sure in the great potential of development for different areas - exchanges, tokens, DeFi and others. Developers are often the ones who use the ecosystem, creating new networks, applications, linking chains with new methods of interaction, offering Polkadot.
Finally, it should be noted that the blockchain described is a fundamental project, capable of changing a lot in 2023 in the familiar things, the life of people. Every year there is a small increase in issuance but it is limited. Experienced people are working on the network, there is a community, a strong team and the goal of the development is to be the "blockchain internet." Additionally, investors, other users are provided with a great steaming environment, which helps to compete with large blockchains like Ethereum.
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