DOT: Parachain Auction Est. Launch Date 1st Week of June PT: $78
PolkaDot is launching their vaunted and long-awaited parachain on Kusama (KSM) any day and literally 1 hour ago on the Kusama Reddit page, the Kusama dev team released an update showing great progress further confirming Gavin Wood's previous estimated launch date of parachains when he wrote in a May 17th Medium post that they were mere "days" away from full launch.
https://www.reddit.com/r/Kusama/comments/nmlbk0/parachain_phases_update/
Many DOT buyers have been frustrated that the launch has taken this long but not to worry this is a very definitive time schedule as you will notice on the reddit page that they have a set of check boxes they've created as steps before the last unticked box is completed. As you can see 95% of the steps are completed and there are just a couple boxes that need to be checked off - 2 of the boxes are essentially the same "Determine Auction Schedule" and "Publish Auction Schedule".
But alas! We're here and if you haven't bought DOT yet, you may want to do so b/c this is a near-term fundamental catalyst that NO ONE is talking about and the entire dev team at DOT is silent on the socials as they are hard at work.
And of course in the chart, the launch date will determine the parabolic rise in price - so for example if the launch occurs a little earlier than expected, say next Monday, then we will see a spike then - if it takes a little longer, say June 5th, then expect the price to rise then... the point is that we are within a few days of something magnificent happening in the PolkaDot ecosystem that has will mark the final step of its full main-net launch and then the first 100 projects to stake 1 million DOT will be determined.
https://www.reddit.com/r/Kusama/comments/nmlbk0/parachain_phases_update/
Many DOT buyers have been frustrated that the launch has taken this long but not to worry this is a very definitive time schedule as you will notice on the reddit page that they have a set of check boxes they've created as steps before the last unticked box is completed. As you can see 95% of the steps are completed and there are just a couple boxes that need to be checked off - 2 of the boxes are essentially the same "Determine Auction Schedule" and "Publish Auction Schedule".
But alas! We're here and if you haven't bought DOT yet, you may want to do so b/c this is a near-term fundamental catalyst that NO ONE is talking about and the entire dev team at DOT is silent on the socials as they are hard at work.
And of course in the chart, the launch date will determine the parabolic rise in price - so for example if the launch occurs a little earlier than expected, say next Monday, then we will see a spike then - if it takes a little longer, say June 5th, then expect the price to rise then... the point is that we are within a few days of something magnificent happening in the PolkaDot ecosystem that has will mark the final step of its full main-net launch and then the first 100 projects to stake 1 million DOT will be determined.
Comment:
How is Polkadot Different from Ethereum?
Polkadot is being compared to Ethereum 2.0, which is the upgrade of the Ethereum blockchain that was launched earlier this week. Both use sharding to deal with issues of scalability, latency, and transactional throughput.
Blockchains like Ethereum 1.0 are built on the Proof of Work (PoW) mechanism. This is a consensus protocol that certifies each transaction to be recorded in the distributed ledger as true. In a PoW blockchain, each node (computer) records all the transactions in the chain.
A transaction must be authenticated by a majority of participating PoW nodes, which makes PoW chains very slow. Ethereum 1.0 processes a transaction in approximately 6 minutes while VisaNet processes 1,700 transactions per second.
Sharding solves PoW’s slowness. In simple terms, it is the breaking of the chain into smaller chunks (shards). Each node is responsible for recording and authenticating transactions in its local shard instead of authenticating all transactions like in PoW.
Nodes in a sharded network can still see what data is in other nodes for authentication purposes, but processing and storage are decentralised.
Polkadot is being compared to Ethereum 2.0, which is the upgrade of the Ethereum blockchain that was launched earlier this week. Both use sharding to deal with issues of scalability, latency, and transactional throughput.
Blockchains like Ethereum 1.0 are built on the Proof of Work (PoW) mechanism. This is a consensus protocol that certifies each transaction to be recorded in the distributed ledger as true. In a PoW blockchain, each node (computer) records all the transactions in the chain.
A transaction must be authenticated by a majority of participating PoW nodes, which makes PoW chains very slow. Ethereum 1.0 processes a transaction in approximately 6 minutes while VisaNet processes 1,700 transactions per second.
Sharding solves PoW’s slowness. In simple terms, it is the breaking of the chain into smaller chunks (shards). Each node is responsible for recording and authenticating transactions in its local shard instead of authenticating all transactions like in PoW.
Nodes in a sharded network can still see what data is in other nodes for authentication purposes, but processing and storage are decentralised.
Comment:
Beacon Chain vs. Relay Chain
While Ethereum 2.0 and Polkadot are both sharded networks, there is a slight difference in how they work. Ethereum 2.0 uses a Beacon Chain into which different parallel shards plug into for sharing of information. Only shards with the right structure can connect to the Beacon Chain.
Polkadot uses a Relay Chain to connect different shards (parachains). Each parachain operates independently. However, Polkadot’s Relay Chain is more flexible than Beacon Chain in the way it accepts shards. Each shard (parachain) makes its own rules (Meta Protocol). The Relay Chain accepts different parachains, which are executed by Relay Chain Validators using standard WebAssembly allowing for higher interoperability than Beacon Chain. External chains connect to Polkadot’s Ecosystem using bridged chains.
In effect, applications from Ethereum 2.0 can connect to Polkadot’s Ecosystem, but Polkadot apps cannot connect to Ethereum 2.0. This is because Ethereum 2.0’s Beacon Chain does not offer bridging for decentralised apps (dApps) developed outside the Ethereum ecosystem, as Polkadot’s Relay Chain does.
A good example of an Ethereum-based bridged parachain is the Moonbeam, which allows Ethereum 2.0 apps to run in Polkadot’s Ecosystem. There is also news that there will be wrapped Bitcoin parachain. It will enable users to mint 1:1 Bitcoin-backed assets onto Polkadot as PolkaBTC, which can be used for including decentralised exchanges, stable coins, and lending protocols.
While Ethereum 2.0 and Polkadot are both sharded networks, there is a slight difference in how they work. Ethereum 2.0 uses a Beacon Chain into which different parallel shards plug into for sharing of information. Only shards with the right structure can connect to the Beacon Chain.
Polkadot uses a Relay Chain to connect different shards (parachains). Each parachain operates independently. However, Polkadot’s Relay Chain is more flexible than Beacon Chain in the way it accepts shards. Each shard (parachain) makes its own rules (Meta Protocol). The Relay Chain accepts different parachains, which are executed by Relay Chain Validators using standard WebAssembly allowing for higher interoperability than Beacon Chain. External chains connect to Polkadot’s Ecosystem using bridged chains.
In effect, applications from Ethereum 2.0 can connect to Polkadot’s Ecosystem, but Polkadot apps cannot connect to Ethereum 2.0. This is because Ethereum 2.0’s Beacon Chain does not offer bridging for decentralised apps (dApps) developed outside the Ethereum ecosystem, as Polkadot’s Relay Chain does.
A good example of an Ethereum-based bridged parachain is the Moonbeam, which allows Ethereum 2.0 apps to run in Polkadot’s Ecosystem. There is also news that there will be wrapped Bitcoin parachain. It will enable users to mint 1:1 Bitcoin-backed assets onto Polkadot as PolkaBTC, which can be used for including decentralised exchanges, stable coins, and lending protocols.
Comment:
Scalability
Polkadot’s all-welcome approach to (dApps) is the reason it holds a better appeal than Ethereum 2.0. It accepts apps made outside the Polkadot ecosystem by bridging. The fact that apps made in other chains and normal programming languages can connect to it makes it vastly scalable.
Polkadot’s higher interoperability offers a significant advantage over Ethereum 2.0. It allows developers to use other chains but still connect to Polkadot’s Ecosystem and enjoy a larger network. Ethereum 2.0 limited interoperability is yet to overcome this scalability issue.
This is a kind of Bring-Your-Own-Tools (BYOT) approach enabled by bridging. Polkadot’s bridges enable it to communicate with economically sovereign and technologically different chains. Developers don’t have to learn Substrate (Polkadot’s framework) to make apps that run on Polkadot. They can deploy their existing resources, which makes the development cycle cheaper and faster.
Scalability is key for DeFi developers. A sharded network that can be scaled allows them to build financial apps that are just as capable as current proprietor networks but will run very cheaply and be more secure.
Polkadot’s all-welcome approach to (dApps) is the reason it holds a better appeal than Ethereum 2.0. It accepts apps made outside the Polkadot ecosystem by bridging. The fact that apps made in other chains and normal programming languages can connect to it makes it vastly scalable.
Polkadot’s higher interoperability offers a significant advantage over Ethereum 2.0. It allows developers to use other chains but still connect to Polkadot’s Ecosystem and enjoy a larger network. Ethereum 2.0 limited interoperability is yet to overcome this scalability issue.
This is a kind of Bring-Your-Own-Tools (BYOT) approach enabled by bridging. Polkadot’s bridges enable it to communicate with economically sovereign and technologically different chains. Developers don’t have to learn Substrate (Polkadot’s framework) to make apps that run on Polkadot. They can deploy their existing resources, which makes the development cycle cheaper and faster.
Scalability is key for DeFi developers. A sharded network that can be scaled allows them to build financial apps that are just as capable as current proprietor networks but will run very cheaply and be more secure.
Comment:
Faster Race to the Market
Polkadot’s development is complete while Ethereum 2.0 is still developing, with a promised full functionality by 2021. While the Ethereum brand has been around for longer, Polkadot is a readily available, fully functional sharded network.
DApp developers may not wait for Ethereum 2.0 to become fully functional. It is hard to see how developers enjoying Polkadot’s higher interoperability will be convinced to turn to Ethereum 2.0.
Polkadot’s development is complete while Ethereum 2.0 is still developing, with a promised full functionality by 2021. While the Ethereum brand has been around for longer, Polkadot is a readily available, fully functional sharded network.
DApp developers may not wait for Ethereum 2.0 to become fully functional. It is hard to see how developers enjoying Polkadot’s higher interoperability will be convinced to turn to Ethereum 2.0.
Comment:
What Potential Does Polkadot Hold?
But perhaps the biggest potential is in Polkadot’s applicability to building functional decentralised apps in different spheres of life. The most obvious is in decentralised finance (DeFi). Polkadot’s scalability and faster processing speeds, for example, could enable stock exchanges to process transactions faster and cut down on bureaucratic processes, while operating fully decentralised.
Polkadot applications will help bring the advantages of blockchain technology in security and transparency to financial applications. The full potential of blockchain technologies in finance has not been possible because areas like stock markets or ATM networks require very high transaction speeds and scalability. When complete, Ethereum 2.0 can only handle 100,000 transactions per second while truly data-driven companies such as Alibaba easily reach 583.000 transactions at peak days such as Singles Day. Polkadot has both speed and scalability and theoretically would enable >1 million transactions per second, according to Gavin Wood.
But perhaps the biggest potential is in Polkadot’s applicability to building functional decentralised apps in different spheres of life. The most obvious is in decentralised finance (DeFi). Polkadot’s scalability and faster processing speeds, for example, could enable stock exchanges to process transactions faster and cut down on bureaucratic processes, while operating fully decentralised.
Polkadot applications will help bring the advantages of blockchain technology in security and transparency to financial applications. The full potential of blockchain technologies in finance has not been possible because areas like stock markets or ATM networks require very high transaction speeds and scalability. When complete, Ethereum 2.0 can only handle 100,000 transactions per second while truly data-driven companies such as Alibaba easily reach 583.000 transactions at peak days such as Singles Day. Polkadot has both speed and scalability and theoretically would enable >1 million transactions per second, according to Gavin Wood.
Polkadot can process transactions across multiple chains simultaneously. This parallel processing capability gives Polkadot scalability that other chains lack. Polkadot allows the creation of custom chains that can quickly connect to the network. The apps developed by these custom chains can interact with each other.
Interoperability has been a big desire for makers of decentralised apps. This is because for true blockchain independence and flexibility to happen, different chains must interact. After all, as I wrote in my 2020 trend prediction, the future of blockchain is all about tailor-made chains interacting with each other and not one blockchain to rule them all. Polkadot’s Ecosystem project will facilitate interoperability among independent chains.
Polkadot is not the only platform focused on blockchain interoperability. There is also Cosmos, but Polkadot has gained more attention because Polkadot’s Substrate Framework offers more versatility and makes it very simple to launch a new blockchain.