Polkadot ecosystem projects 2021, became one of the news about crypto assets, which experienced an increase in searches.
Polkadot is a blockchain project that is also probably to be able to compete with Ethereum which was already famous. The price also predicted to have great success in the next few years.
But what is Polkadot like, is it one of those profitable business ideas? Check out the following reviews.
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- 1 What is Polkadot Ecosystem?
- 2 How does Polkadot works?
- 3 History Polkadot
- 4 Token DOT
- 5 Polkadot Blockchain
- 6 Polkadot price
- 7 Polkadot a good investment
- 8 Polkadot Defi projects 2021
- 9 Bottom line
What is Polkadot Ecosystem?
In general, Polkadot is a network that can combine one blockchain network with other blockchain networks.
This is usually referred to as a multi-chain network. Because it can link networks together, unlike networks like Bitcoin, which operate independently. In other words, it is a heterogeneous multichain network technology, which is scalable in design.
This blockchain act as a kind of decentralized center for all type of blockchain. Bitcoin or Ethereum. Polkadot networks can provide a relay-chain platform upon which a host of large, globally validated dynamic data structures can be hosted.
How does Polkadot works?
Polkadot works in parallel by using a technology called Parachain which can be added or removed. This will connect the blockchains to each other. Parachain allows applications about public blockchains, private blockchains, or other data sources.
Data on the Parachain are accessed via special nodes, called collators, and sent to Polkadot. The way it works is similar to a decentralized oracle.
Parachain is activated by staking the DOT token and removed from Polkadot by releasing this same token. Polkadot main chain, or Relay Chain which supports smart contracts.
This is secured by a type of DPoS (Delegated Proof of Stake). Which Polkadot calls NPoS (Nominated Proof of Stake).
This work system consists of a nominee and a validator: Where Nominators work with their tokens to select a validator, which will validate the new block.
If the validator does not work based protocol. He will be punished along with the nominee who voted for him.
Parachain itself supports features on many other blockchains. Including smart contracts (Ethereum). ZK-snarks (Zcash), and UTXO transactions (Bitcoin).
Polkadot network purposes design
The Polkadot network has several objectives to troubleshoot several problems such as:
- Interoperability: This allows Polkadot applications and smart contracts on one blockchain to transact with data and assets on another chain seamlessly.
- Scalability: It aims to provide the ability to run multiple Parachains, each processing multiple transactions in parallel, allowing the network to gain unlimited scalability.
- Partnership Securities: With Polkadot, its securities are a network. It’s meaning that individual chains can take advantage of collective security without having to start from scratch to gain traction and trust.
Polkadot’s history is inseparable from the name Dr. Gavin James Wood, who is the co-founder of Polkadot. He wrote the Polkadot white paper on November 14, 2016. Then the protocol is supervised by the Web3 Foundation, which was founded in June 2017.
Gavin Wood is a person with experience in blockchain technology, he is the founder and director of Parity Technologies. He served as the Chief Technology Officer and co-founder of the Ethereum Project, co-designer of the Ethereum Protocol, before finally designing the Polkadot whitepaper.
The DOT token is a native token from Polkadot, it is not an ERC20 token. DOT has three main functions in the Polkadot network.
- Governance for the network.
- Operating the network or staking.
- Creating Parachains with DOT bonding.
Token DOT Governance for the network
In the network governance function, DOT tokens can authorize right-holders to complete governance controls on the network platform.
Network governance includes: determining network fees, or the auction process, and the schedule for adding Parachains. Also includes improvements to the Polkadot platform. Here DOT holders can participate in governance through the Polkadot code base.
Operating the network or staking
In this function, the DOT token acts to provide a consensus mechanism facility for the network to function to achieve valid transactions.
The Polkadot ecosystem will rely on DOT holders to put their DOTs at risk (referred to as “staking” or “bonding”) to perform this function, acting as a disincentive to malicious participation in the network.
The DOT staked in the network will vary according to the activity undertaken, the duration of the DOT staked and the total amount of DOT wagered.
Create Parachain with DOT bonding
In the process of creating new Parachains. DOT will be locked during the bonding period. And after the bonding duration ends and the Parachain has been deleted. Then DOT will be released back to the binding account.
Redenomination Polkadot (DOT)
On August 21, 2020, the Polkadot (DOT) community voted for redenomination.
Polkadot’s redenomination divides one old DOT into 100 new DOTs, and the supply increases from 10 million tokens to 1 billion. This update does not change the total investor balance. But the event is influencing to boost the DOT value to the top ten rankings on Coinmarketcap.
This process requires a community referendum that takes place in July 2020, in which 86% of community members voted for agreeing.
After the redenomination, the DOT soared from the US $ 2.92 to US $ 6.84 on September 1, 2020.
Polkadot is an open-source technology founded by the Web3 Foundation. Web3 is an organization that funds and develops decentralized web research.
To further develop Polkadot, web3 has assigned five teams and more than 100 developers, including Parity Technologies, ChainSafe, Soramitsu, Polkadot js.
The team behind Polkadot’s development is not new. But they have experience and reputable scientists in their fields. Dr. Gavin Wood has experience as a co-founder can CTO Ethereum, Robert Habermeier is an expert in blockchain research and cryptography, Peter Czaban is director of the Web3 foundation who fully supports future research for distributed technology.
By carrying out the mission of A scalable, interoperable & secure network protocol for the next web, Polkadot technology allows not only the transfer of tokens between blockchains but also arbitrary data.
That means this technology can use for transaction chains, oracle chains, identity chains, file storage chains, data curation chains, IoT chains, financial chains, and privacy chains.
In other words, the Polkadot network is a multichain application that developers can develop for public, open, permissionless, or private in this network.
Possible technology to connect Bitcoin blockchain and Ethereum Blockchain via Bridges which allows Parachains and Parathreads to communicate with the external blockchain.
Polkadot a security
The security side is very important in the Polkadot network because this platform functions like a browser that connects various kinds of data.
Therefore it should not happen when communicating with an external blockchain then there is a lock that causes the data to be inaccessible. This may be the weakness of sharing security which still needs to be better developed.
Citing from Cryptoseq medium, the security case when October 2017 DOT ICO got 145 million USD in Ethereum. However, more than 90 million USD of funds raising during the ICO are permanently frozen. Because of vulnerability in Parity’s (creator of Polkadot) Multisig wallet code. And more than 500,000 ETH are still locked to this day.
For security, Polkadot uses sharing security. The Polkadot network consists of hundreds of parallel chains called Parachains.
This design allows the network to have the same scalability and the same functionality. Then the Parachain must be able to communicate and be verified by the Relay Chain. Furthermore, the safety of all Parachains is transferred to the Validator of the Relay Chain.
In this model, if the number of validators increases, the security of Polkadot will increase. And the more Parachain likely the more transactions per second will be across all the chains.
The Polkadot wallet allows the storage of private keys and access for transactions. Taking from the Wiki Polkadot network, the wallet that supports are Parity Signer which is available for android and IOS, Polkadot-js desktop for Win, Mac, Linux, Polkadot-js extension for a browser extension, and Polkadot-js apps for browsers.
Besides official sources, there are Polkadot wallet developers who are third parties such as Polkawallet and Trustwallet.
Polkawallet not only supports Polkadot but also Kusuma, Acala, Laminar, and #Substrate. Meanwhile, Trustwallet also supports top bitcoin and other blockchains.
Polkadot ecosystem price since the end of 2020 has experienced a very significant trend increase.
The increase is very noticeable after the beginning of January 2021, previously since August the Polkadot price has ranged from $ 2 to $ 5. However, after January 2021, the Polkadot price began to climb slowly but surely.
Early February 2021 the price has reached $ 16 until the end of the month has broken through $ 38. In March reaching prices ranging from $ 30 to $ 39 until April, Polkadot managed to hit an all-time high of $ 46 in early April.
Polkadot price prediction
The Polkadot ecosystem price prediction in April is estimation rise to $ 37 by Longforecast. However, in May it is prediction fall to the level of $ 27 and reaches $ 24 in June.
Meanwhile, looking at the current price chart, DOT already enters the support zone from the historical prices of February to March. At press time Polkadot’s price is at $ 31, and it may return to $ 40 in the next month.
Polkadot a good investment
From the technical analysis point of view, the history of Polkadot’s price has gradually formed a bullish trend. This implies that investors have great interest in this DOT token.
With the current market capitalization of over 29 billion USD and a daily volume of 2 billion USD. This is an indication that Polkadot is an important asset trading on the exchange.
Even Polkadot’s price had gone up 100% in just a week, it was such a huge volume of demand that the price went up so fast.
The fundamentals of the Polkadot ecosystem, which is a platform that becomes a multi-chain blockchain bridge, is one of the pillars that this platform is very important in the development of blockchain technology and cryptocurrency.
Polkadot Defi projects 2021
Currently, there are 428 projects in the Polkadot ecosystem network.
This data is quoted from Polkaproject which was released on April 24, 2021.
Maybe in the next year, there will be more and more projects built on the Polkadot ecosystem network.
In summary, all projects that have been registered, which are the top rank projects in Polkaproject are as follows:
- Polkadot with the DOT token.
- Phala network with PHA tokens.
- Ocean protocol with OCEAN token.
- ELP with ELP tokens.
- Reef Finance with REEF tokens.
- CRUST network with CRU tokens.
- PolkaBTC with PolkaBTC tokens.
- Darwinia with the RING token.
- Joysteam with JOY tokens.
- Bifrost Finance with BNC tokens.
The very first Polkadot project is KUSUMA. This is a project by the founder of Polkadot, namely Dr. Gavin Wood in 2019. Which KUSUMA uses the same codebase as Polkadot. KUSUMA This is often reffers as the Testnet for Polkadot.
The 428 Polkadot projects list with Polkaproject at the time of the press split into several categories.
- SubstrateBased category, there are 143 projects.
- Tooling category there are 33 projects.
- PolkadotImpl there are 5 projects.
- The wallet category has 39 projects.
- Infrastructure project there are 33 projects.
- Developer, there are 55 projects.
- The validator has 29 projects.
- Explorer has 14 projects.
- The forum has 25 projects.
- The workshop has 19 projects.
- DApp has 33 projects.
Polkadot is currently rank 8th on Coinmaketcap. Project growth above the Polkadot network, including increasing rapidly.
The Polkadot Ecosystem Network, also known as Blockchain on the blockchain. It is an open-source platform that has the chance to grow rapidly in the future.
However, blockchain technology may still emerge new platforms that provide better solutions and beat old platforms.
But looking at Polkadot’s foundations. It is possible that in the future it will continue to increase in value like Bitcoin has a history of its own.
This article is only a review of various sources and is not investment advice, the crypto market is a liquid market that investors may lose half or all of their money.
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