Recent Updates From Polkadot, The Seamless Transaction Interchain
Polkadot is an open source blockchain distribution platform enabling the connection and creation of other sub chains known as parachains for seamless interchain transactions.
Built on a systematic and advanced technology focused on security and low need for trust, Polkadot has continued to increase its growth rate and is now termed the internet of blockchains.
One of its recent developments is the promise of total freedom by Gavin Wood, from ethereum’s mode of operation that many crypto enthusiasts see as a blockchain enslavement.
Gavin Wood, who is the founder and creator of Polkadot made this statement following the successful completion of the first Polkadot parachain auction.
This success itself proves ethereum smart contracts are not entirely needed and in time, Polkadot can completely erase the constraints that come from using ethereum smart contracts.
According to Wood, “The users of applications that are built on Ethereum are enslaved to it in an economic sense.
His argument was that, Users have to own ETH on Ethereum or some other token as a requirement before they can successfully launch their decentralized application on it’s blockchain.
This is a huge limitation and one of the big ways Polkadot is different from Ethereum. Polkadot application model of free execution is nothing compared to Ethereum smart contract model.
It’s no wonder the increasing milestones set by Polkadot since inception. For Instance, Acala won the first Polkadot Parachain Auction with a $1.3 billion in DOT committed. A parachain auction is an auction held on the Polkadot chain in order to decide which blockchain connects to the parachain slot. Projects in the auction bid by using two vital pieces of information, their bid amount and slot duration.
During the first parachain auction, Acala, which is a decentralized finance platform, won after days of intense competition by Moonbeam, an Ethereum compatibility layer. Acala was selected through a candle auction process which involves randomly selecting a block from the past seven days.
By the time the auction and contribution ended, Moonbeam had the most contributions, totalling $1.36 billion. Despite this Acala, which was in the lead most of the time had a higher chance of winning because of this even though the total contribution was $1.30 billion. 81,000 total wallets contributed to Acala during the auction.
Polkadot’s signature candle auction process was deployed in order to prevent last minute auction manipulation and this process was further validated during the auction period despite the high drama and high traffic and donation traffic that took place.
It is also important to note that over $3.5 billion would also be collected by 10 more projects that took part in the auction. In other words, while it is worth noting that Acala won the first ever auction in the Polkadot parachain system, on a technical level, all other parachains would be activated at the same time.
In addition, 5 Polkadot parachains would be auctioned by December and all projects will go live at the same time on the 17th of December. Polkadot also pointed out that during the auction, it appeared that one participant was responsible for almost 40% of total contributions. This could be because big decentralized exchanges may have grouped individuals together into a central wallet hereby explaining the large contributors.
With the success of the auction, Polkadot is set to continue its mission to create a framework that allows application developers to build their own blockchains using their own unique and specific rules and also giving rooms for those chains to communicate and interact with each other.
In addition to all those, a research conducted by Samuel Hafner, a web3 foundation research scientist based on Utility Token Design, with the way Polkadot was/is setup, it is definitely sustainable. This is because the value of DOT, which is the token used in Polkadot, is reflective of the portion of services it can buy.
This hinges on the fact that demand for the DOT token is generated through the parachain auctions which would then be met by the supply of the validators, this then ensures the Polkadot system keeps going. Another major point validated by the research, is that there should be no fear whatsoever that Polkadot will reach a point where there would be abuse of power or become a tyrannical platform. This is because Polkadot allows users to compete for its services instead of fixing or designating prices, it cannot, therefore, engage in anti-competitive price setting behavior which is usually seen in a capitalist system. As long as Polkadot seeks to provide excellent services for its users, one would continue to see a healthy system devoid of price manipulations.
Also, in one of its recent developments, Polkadot now makes it easy to send DOT and KSM to family and friends in what they call, “Polkadot and Kasuam Gifts” And it is possible even if they do not own an account or a wallet.
Acquiring new users is usually one of the biggest problems of any blockchain network. Polkadot hopes to solve this problem for themselves and even their users by removing the learning curve and herculean process it takes users to invite and educate their family and friends.
By using Polkadot and Kasuma Gifts, members will be able to send DOT and KSM to whoever they want to send it to in a trustless non custodial way, which is a major technological breakthrough of Polkadot. New recipients of these tokens would be guided through the process of setting up an account and wallet.
Users who want to send Polkadot gifts would first need to generate a unique gift secret, which is a 16-digit number that works like a voucher so that your recipient can claim their gift.
With the Polkadot gift system, it becomes increasingly easy to onboard new users, family and friends who want to know more about Polkadot and don’t know where or how to start. Existing users can also share their love and care through token gifts, as gifts have and would always be the real way of showing love.
With these developments, one can see Polkadot is up for great things and I look forward to giving you future updates on Polkadot and their Parachain Auction model.
Learn more about Polkadot by visiting the following the links below: