The bridge-Builder for the Internet of tomorrow

Eleven years after the Genesis of bitcoin, the world stays still, the Blockchain Revolution: has spoken about his quality as a store of Value by now in the crypto-foreign circles around. But the big Killer-Apps on Blockchain-based yet still have to wait. This is partly due to the fact that Ethereum is the Basis of most of the decentralized applications (dApps). The second largest crypto network according to market capitalization went 2015 is the first Blockchain that can execute programs, to the Start. Can polka dot (DOT) to bring Blockchain technology to the Mainstream?

Children’s diseases, in which Ethereum is eating up today, including: above All, the lack of scalability has been proven time and again as a bottle neck for the success of decentralized Apps on Ethereum-based. This year, the flourishing branch of the decentralized financial services (DeFi) leads to the Overuse of Ethereum dramatically before our eyes. The network fees are increased due to the high demand to a record level. If you Token for the exchange of Ether against one of the currently popular DeFi-sometimes high double-digit amounts of dollars on Gas Fees have to pay, it takes just small investors quickly, the desire to DeFi.

To remedy this Ethereum 2.0. The launch could coincide with Phase 0 this year. But to Eth2 in its full functionality will be available, should lead to, according to the Ethereum co-founder Vitalik Buterin is still some Winter to the Land.

That we are moving forward with Ethereum 2.0 slow, has Gavin Wood, another Co-Founder of Ethereum and former CTO of the Ethereum Foundation recognized early. And so he has launched a new project, the Vision of a decentralized “Web 3.0” to implement in practice: Polkadot.

Relay Chain, and para-chains and Bridges: So polka-dot works

Unlike Bitcoin or Ethereum (1.0) sets polka dot is not on a single Blockchain, but on several, the run hierarchically above or next to each other: The polka dot Protocol, is fully committed to interoperability – the Blockchain-and cross – Interaction between different networks.

At the heart of Polkadot is the Relay Chain. She is the glue that holds all of them with Polkadot networks connected together. The Relay Chain has interfaces (“Slots”), on the other networks at Polkadot “” can dock. So-called para-chains are used. It is specialized Blockchains (or other data infrastructures), the focus on a single area of application (for example, IoT, financial services, insurance, or Gaming).

The Bridges are a special case of para-chains. As the Name already suggests, it is a case of bridges, the Polkadot network link with other block chains – all Bitcoin and Ethereum–. As a result, new possibilities, Bitcoin units in tokens incurred to bring the humanized Form on Ethereum. In this way, Bitcoiners can leave your BTC for example in the Ethereum-based DeFi-Space “work” to.

Although Ethereum 2.0 and polka dot have some fleeting Similarities, we are of the opinion that their ultimate goal is radically different, and that the two protocols, rather than competing with each other, are likely to exist in the foreseeable future in the context of a mutually beneficial relationship side by side

Polka Dot Paper

Substrates: The Blockchain-Modular

Polkadot offers developers, moreover, with substrates a kind of “Blockchain-construction kit” that allows it to create a new Blockchain from different modules together, and polka dot connect. Such substrates provides ready-made modules, for example, for Node implementations, cryptography, network consensus, and data storage. Developers can thus provide relatively easy-a Blockchain on the legs, without the need of concessions in the network security: All para – chains- even those that are not based on substrates are secured via the consensus mechanism of the Relay Chain.

TPS, where Visa gets teary-eyed

What is Ethereum now consuming in retrospect, it is created in Polkadot from the very beginning: The Consensus via Proof of Stake. While Bitcoin (and yet also in the case of Ethereum) of the process to Confirm of blocks is not only slow, but also extremely energy-hungry, promises to Proof of Stake is a much larger Transaction throughput. And at a far lower expenditure of energy.

In combination with the para-chains Polkadot should be able to this is a processing of over 166,000 in transactions per second (TPS) achieved. Chief developer Gavin Wood from a perspective of up to a Million TPS. For comparison: Bitcoin comes to an average of 3 to 5 TPS, even Ethereum, only 12 to 15 TPS. Even credit card providers to be seen in the comparison of the old Visa can afford, according to information on the company’s website up to 65,000 TPS. Of course, it is in the 166.666 TPS to theoretical maximum values, to be achieved in practice.

DOT: A Token, three tasks

The platform’s own DOT-Token is used in three areas. In the area of network Governance, the DOT can take part owners with their Token in elections and referendums on Protocol changes. Each DOT Holder is also entitled to submit their own suggestions.

Furthermore, the DOT for the operation of the network is needed. Holder can with DOT-Token nominate blocks, the validators of the TRANS-action, in order to obtain even a Chance at a share of the Block reward.

Finally, DOT requires the Token for the connection of a para-chain. As long as a para-chain is associated with the Relay Chain, you must pay a certain amount of DOTs.

Investment Case Polka Dot

In a sea of now tens of thousands of crypto projects, is part of polka dot to the more substantive candidates. With the Mainnet Launch at the end of may, the network, the state still under the control of the Web3 Foundation has done, an important step in the direction of decentralisation. With its Blockchain-agnostic approach Polkadot is positioned well to become a Central Player in the burgeoning Economy of distributed networks. Direct competitors there are, as yet, little in addition to WanChain is particularly significant in the Cosmos to.

Also, what is not need to hide when it comes to the Expertise of the developers of the polka dot. The Web3 Foundation, founded by Gavin Wood, especially for the development of Polkadot, employs, among others, researchers from the ETH Zurich, as well as developers of Parity Technologies.

The Governance was agreed in July your nail sample: The DOT-Holder for an Amendment to the Denomination of the DOT. This is since 23. August (the “D-Day”) out of 10 billion, the smallest units (“Planck”), 100 Times less than previously. From a DOT 100 DOT (NEW) thus, the rate fell accordingly, from 300 to 3 – 4 dollars. By mid-September, the onset of sales remained even with the new DOT not spared. A short-lived flight ended in the case of 6.44 US dollars. In the following months, DOT was in the Range of 4 to 6 US dollars. At the end of December, the outbreak has occurred, and to the North. This is the editorial deadline of DOT in the case of 7.26 of the US Dollar, and thus provides a strong Signal for the end of the year.

Polkdadot (DOT): Pro and Contra

This post first appeared in the October issue of the crypto-compass, the first market letter for digital Assets.