Polkadot is speculated to go up 10x just like Cardano (ADA). In a blockchain ecosystem where Ethereum (ETH) and Bitcoin (BTC) reigns, Polkadot— which just launched last May 2020— is already making a name for itself as the next hottest blockchain.
The capability of bitcoin in aiding value transfer even without central authority had limitations in integration, interoperation, and scaling. This led to the founding of a more flexible network like Ethereum, where value can be passed on more flexibly through a smart contract.
Ethereum also brings life to a decentralized system where several applications could be operated and made without intermediaries. However, many projects are being pressed onto the network’s congestion and expensive gas fees, which is where Polkadot comes in.
What is Polkadot?
The Polkadot (DOT) ecosystem has concentrated its mindfulness on designing a heterogeneous and completely scalable network that is focused on building up a multi-chain technology.
Unlike Bitcoin, which has a network that only operates independently, Polkadot (DOT) is a multi-chain network that operates with other networks. A Swiss organization called Web3 Foundation has coined Polkadot as the “next-generation blockchain.”
Polkadot was founded by Gavin Wood, who also co-created Ethereum. Polkadot aims to serve as a framework for all blockchains that take part, similar to how HTML permits websites, servers, and browsers to interact with each other.
Wood perceived Polkadot as the solution to the network upgrade of Ethereum 2.0, which is already under development. The main idea is to oversee the costly and messy mining processes of cryptocurrencies, including the security protocols and validation of transactions. Additionally, it is to enable developers to pay attention to creating smart contract features.
The concept of an interconnected blockchain ecosystem is produced for those developers who wish to leverage Polkadot to stabilize the blockchain community and create awareness for their current and upcoming projects. The drag-and-drop template allows teams to create a blockchain network in minutes rather than spend restless days building them from the ground up.
The functions and features have seen investors showing significant interest in Polkadot. Just within four months after its launching, DOT reached a US$3.7 billion market cap and escalated as the 7th largest crypto in the market. And perhaps, you also wouldn’t agree less that Polkadot could grow 10X as it is now.
How Polkadot Woks
Blockchains are permitted to connect with Polkadot and operate in parallel as “parachains” to access the DOT’s proof of stake validation of security and transaction. In a network called a “relay chain,” the transaction data is standardized, and addresses are checked so systems can comprehend it, and this is where every chain pool security.
While the functionalities are taken care of, all blockchains that are connected to DOT can utilize their own PoS mechanics and decide how they will update their code. Connected blockchains are also able to choose their preferred tokens and run apps.
DOT is basically a pick-and-choose layer that gives networks an opportunity to build in as well as incorporate new protocols and preserve their own security.
Polkadot Ecosystem
Polkadot will take a huge leap up, and you have to understand why this will happen.
Polkadot has similarities to Ethereum. Several people who used to work at Ethereum moved to Polkadot and designed a system that has solutions to the problems that Ethereum has. Cardano has increased already and will surely increase in the following weeks, and DOT is also making a big event right now.
Polkadot was founded from the precursor project Kusama as an unaudited canary network last 2019. The canary factor helped the development team know and take care of major concerns before their launching on the main net.
Although Kusama (KSM) stands as a standalone project, it has a more profound entry barrier and faster governance parameters. Everything that’s going to come to Polkadot (DOT) has to go to Kusama (KSM). And if DOT ever explodes, KSM will also explode and offer bigger gains.
As we go deeper, Phala Network (PHA), which is privacy, has a pretty large market cap right now and will start to go bigger. Polkadot is about to have its Binance smart chain leg up, and these networks are what it would probably move.
Polkadex (PDEX), as likely as not, is the most undervalued on the Polkadot (DOT) network. It is currently bumping up, but as you can see in the chart above, it’s playing a rollercoaster game, having a bopped back down. This is often overlooked, but if you look at the other DEX’s on Binance smart chain, if Polkadex explodes, it will be so massive.
Another thing you should look up to is Kylin (KYL). This also has a low market cap and is not really doing anything. You could also try betting on long-term investment in Reef (REEF). REEF is a big project on Polkadot, and that could probably rise up to $2 billion in the coming years.
The networks mentioned above are part of the Polkadot (DOT) ecosystem and what you need to understand is this: every time the ecosystem pumps, the main coin as well as the important projects in the ecosystem pumps, along with oracles, swapping system, launchpad, and NFTs.
Investors have seen this kind of movement on the Binance Chain. Now we see the same bump-up movement for DOT. Polkadot, by far, is next to Cardano. That being said, the ecosystem that’s in DOT could get the same amount of hype that Binance Coin and Binance Chain got.
DOT hasn’t really seen its leg up since its big leg up right now. In the coming months or years, we could probably see it go up to the top 5 and challenge Binance Coin’s position. If you have investments in their ecosystem when that happens, you would probably do very well.
There is a huge chance that the market is moving in this direction. That’s why you should, at least, be aware of it.
