Polkadot Review

Review: Polkadot

4.4

Unlike Bitcoin and Ethereum, Polkadot is still a developing cryptocurrency. Long-term returns on your investment may be substantial if you enjoy taking chances.

Pros
  • As Polkadot uses a shared security paradigm, developers may build chains and apps without worrying about finding enough miners or verifiers to protect their own chains.
  • Bridges may be used to connect the parachains of Polkadot to other networks, such as Ethereum and Bitcoin
  • The market cap of Polkadot has risen to the top ten coins, and it has begun to be connected with other networks like Chainlink. It has already raised close to $200 million.
Cons
  • Polkadot has to compete with a number of general-purpose Proof of Stake blockchains that support smart contracts. These include Tezos, Cosmos, and Cardano, to name a few, as well as Ethereum, which is the market leader and has already shown established network effects.
  • Twice, hackers used bugs in the code to steal millions of dollars before they were stopped.
  • Because there are only so many parachains and the slots are sold through a competitive auction, some less common uses can be too expensive.

Business score: 4.5/5

Branding

Polkadot has been branded as an open-source blockchain network that allows distinct, isolated blockchains to link to form interconnected, application-specific sub-chains known as parachains. Polkadot employs the Substrate modular architecture from Parity Technologies for each chain it builds, allowing developers to pick and choose the components that are ideal for their application-specific chains. All parachains that connect to a single base platform known as the Relay Chain collectively make up the Polkadot network. While the network’s para chains are protected by this relay chain, the application functionality is not supported.

Team

The creators of Polkadot are Web3 Foundation Technology Director Peter Czaban, Robert Habermeier, and Ethereum Co-Founder Gavin Wood. As co-founder and chief technology officer of the Ethereum Project, Dr. Gavin Wood also co-designed the Ethereum Protocol, wrote its formal specification, and developed and coded the first practical Ethereum implementation. He also developed Solidity’s smart contract language. In the crypto sector, Polkadot boasts one of the largest and fastest-growing developer communities. Polkadot is well ahead of other well-known projects like Algorand, Avalanche, NEAR, and others, and just slightly behind Ethereum in terms of total developers and full-time developers.

Roadmap

In addition to maintaining a project roadmap, Polkadot breaks down its launch process into three steps on its roadmap. A PoA network run by the Web 3 Foundation served as the blockchain’s initial form of launch. The network subsequently proceeded to NPoS in phase 2, where governance is more decentralized and centralized control will be completely transferred to DOT token holders. Step 5 follows Phase 4, and it involves the current phase of facilitating balance transfers on the decentralized, unauthorized network using the newly activated governance system. Once research and auditing are finished in the weeks after, phase 6 will be observed, which involves the dissemination of the first parachains. Following the conclusion of phase 6, the user and on-chain governance mechanisms will have total control over Polkadot’s future plan.

Technical: 4.4/5

Product

Parachains

Scalability is addressed through parachains in Polkadot. They are referred to as “parachains” because they are separate chains or ecosystems that exist in addition to the relay chain. They have their own tokens and governance, but they also link to the relay chain and share its protection. Each chain is motivated by its own economy and incentive structures rather than being rewarded by DOTs. Each parachain constructed using Polkadot makes use of the Substrate modular architecture, which enables developers to create programs within parachains to suit their unique requirements. As a result, unique use cases, such as DeFi, gaming, NFTs, etc., may be optimized by using different parachains. Instead of having to build on a broad-sense smart contract network like the EVM, Substrate offers developers more freedom and optimization. Substrate allows you to customize your transaction costs (even none), data storage, speed, consistency, and pallets, among other things. A hard fork may also be required.

User Experience

Although there are just a few wallet options for DOT, the community prefers imToken and Polkawallet, at least two other mobile wallets. The primary difference between the two wallets is whether you want a DOT-only or multi-cryptocurrency wallet, and both offer attractive, user-friendly UIs. More cryptocurrencies may be held in imToken than in Polkawallet, and you can trade the majority of them just inside the program. Polkawallet specialized solely in Kusama and DOT, in addition to providing a visually appealing experience.

There is also Polkadot JS, although it is simply a wallet for web browsers. In case they’d rather not use mobile, this enables users to transmit and stake DOT from their desktops. As of right now, DOT is not compatible with desktop or hardware wallets.

Polkadot also provides users with access to a plethora of Block Explorers, statistics, a wiki, a plethora of blogs and social networking sites, a software development kit (SDK), Git, and third-party staking statistics websites. Because of the strong community Polkadot has established, many projects are quickly utilizing its substrate structure. Users may add more substrates and polkadot tools, fresh polkadot applications, and mentors.

Governance Holders of DOT tokens have a say in how the network is run inside the Polkadot ecosystem. Network fees, auction mechanisms, and the creation of new parachains are all governance processes that DOT holders have authority over. On issues like improvements and changes to the Polkadot platform, owners can vote with their DOT.

Crypto-Related

The following two processes underpin Polkadot’s consensus:

The method of producing blocks is called BABE, or Blind Assignment for Blockchain Extension. It gives validators, who are chosen at random, slots for block production so they may stake them.

The relay chain’s finality technique is known as GRANDPA, or the GHOST-based Recursive ANcestor Deriving Prefix Agreement. In order to potentially speed up the finalisation process, this organisation obtains agreements on chains rather than blocks.

Polkadot’s primary technology is the relay chain; however, the network reaches agreement using a customised Proof of Stake system that consists of four essential elements:

A Parachain’s Collator: A parachain’s collator is where the process of creating a block begins. On any other network, a collator functions similarly to a validator. However, unlike validators, collaborators are not responsible for handling security assurances.

Validators: Validators are chosen at random and given the job of getting block candidates from parachain collators, looking at the data in the block, and then sending the block candidate to the Polkadot relay network.

Nominators: Nominators provide tokens to a verifier of their choice rather than directly participating in the transaction validation process since they may be unable to do so. Fishermen: Fishermen serve as watchmen on the Polkadot network, keeping an eye out for activity and identifying validators who violate consensus rules.

Security

Polkadot is currently a work in progress and has a relatively short history of being an active project with users and chains; hence, these problems account for a large portion of the project’s backlash. From a technological standpoint, Polkadot has not had any significant problems known since the network’s introduction. The team’s wallets have previously been breached due to a programming flaw, but this post-ICO multi-sig wallet attack was different. Before the assault was halted by a hacker group known as the White Hat Group, the first hack, which occurred earlier in July 2017, drained $33 million.

Conclusion

Unlike Bitcoin and Ethereum, Polkadot is still a developing cryptocurrency. Long-term returns on your investment may be substantial if you enjoy taking chances. However, it may potentially fail if Polkadot is supplanted by a more advanced technology. It will take some time before this new cryptocurrency, Polkadot, achieves significant success, despite having a number of projects in the works. Due to the fact that it is more participatory, Polkadot is attracting investors’ attention. The Polkadot technology allows developers to connect existing blockchains as well as build brand-new blockchains from scratch. Investors are drawn in when they observe developers flocking to a new technology.

*Disclaimer* The project’s reviews are not financial advice. You are risking your own funds and you should do your own research on each individual investment. We only search for strong projects and are not looking for a get-rich-quick scheme.

*The review can contain referral links and is based on our internal guide that you can read here: Internal Review Guide*

Join our social channels for news and discussions on everything crypto-related. Want to discover more amazing projects? Check out the Reviews and Crypto World category. If you are new to crypto, visit the Education category and get started with your first project

We strive to educate, grow and help as a community with no borders. We support equality of genders, races, and colors and we want to touch the whole world.

Leave a Reply

Your email address will not be published.