V God once said: Only Ethereum 2.0 can defeat Ethereum in the future.
why?
why?
Because Ethereum 2.0 is just a single sharded blockchain.
The goal of Polkadot is to connect all blockchains and establish a borderless blockchain interconnection network.
The founder of Polkadot said: "There can be many Ethereums on the Polkadot network."
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What is Polkadot
Before talking about Polkadot, we have to mention its founder, Gavin Wood.
Who is Gavin Wood?
He is the co-founder of Ethereum, and he completed the core part of Ethereum in the early stage of Ethereum.
If V God is the father of Ethereum, he can be called the "mother" of Ethereum.
In 2016, Gavin realized the limitations of Ethereum, so he came out and founded Polkadot.
Gavin said: "Ethereum is an experiment for me, Ethereum is also my school, and I graduated from this school."
Once the Polkadot project was proposed, it aroused the crazy pursuit of the blockchain world.
In 2017, Polkadot conducted private placement for the first time, and the private placement price was $35. It took only 7 days to obtain funds of 485,331 ETH, worth about $144 million at the time.
At that time, the state of Polkadot was just a white paper.
Two years later, Polkadot conducted another fundraising, with an issue price of $90, and Polkadot’s valuation tripled.
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Interconnection between blockchains
The blockchain industry seems to be lively, but in fact there are not many truly valuable projects. Most projects are patchwork. Forcibly use the blockchain for marketing, and carry out digital currency hype in the name of the blockchain.
There are only a handful of projects that can really affect the development history of blockchain technology.
Bitcoin, let everyone realize the charm of decentralized digital currency for the first time.
After that, God V came with his Ethereum.
Ethereum is equivalent to a blockchain operating system, just like Android in a mobile phone. Let the blockchain become a computer that can run anything.
It is precisely because of the emergence of Ethereum that the rise of ICO has been driven, and the blockchain public chain market has entered a stage where a hundred flowers are blooming. In 2018 alone, 28 public chain projects were listed.
But there is a more serious problem here, that is, there is no information exchange between public chains. These public chains are all isolated islands, just like computers that are not connected to the Internet.
So at this time, Gavin Wood saw these problems, and he created "Poca". Polkadot's goal Polkadot is to be a "router" between public chains, so that different blockchains can be interconnected.
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How to do cross-chain
The core function of Polkadot is to link different blockchains, so that the blockchains can communicate assets and messages by connecting Polkadot. This operation is also called cross-chain.
How exactly did Napoca do it?
Everyone should know that the router for Internet access at home has a CPU inside the router and a network socket on the casing. If you want to connect to the computer with a cable, you need to buy a network cable.
So simply using a router as an analogy, Polkadot also designed three roles: relay chain, parachain, and blockchain bridge. Corresponding to CPU, network socket and network cable respectively.
The relay chain is the CPU of the router, which manages the operation of the entire router.
The parachain can be considered as the network cable socket of the router.
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The relay chain is the core of Polkadot, responsible for the network security, consensus and cross-chain operations of the entire Polkadot.
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In the end, the vote was 100 times the result, that is to say, after this vote, the original 10 million DOT limit was instantly increased to 1 billion DOT.
This reflects the great value of DOT, holding more can affect the development direction of Polkadot.
The third is that binding a parachain requires pledge.
If you need to access a parachain in Polkadot, you need to bid for a parachain slot through DOT, and you need to bind DOT to get the right to use the parachain.
In addition to the above three functions, DOT can also generate equity through the Nominated Proof of Stake (NPOS). Simply put, DOT mortgages can generate income.
2. DOT mortgage generates income
We know that the consensus mechanism of Bitcoin is POW (Proof of Work), and whoever does more will have a better chance of getting bookkeeping. It is the fairest in terms of process, but it consumes a lot of energy because of the non-stop calculation.
The consensus mechanism of Ethereum 2.0 is POS, which is distributed according to the amount of pledged funds. Whoever pledges more coins has a better chance of getting bookkeeping. The disadvantage of POS is that the strong will always be strong, and the more mortgages, the more profits, which can easily form a monopoly.
Polkadot’s consensus mechanism is Nominated Proof of Stake (NPOS), which has been improved on the basis of POS, thus perfectly solving the ending that will eventually form a monopoly.
In Polkadot's Nominated Proof of Stake (NPOS), there are two roles, the nominator and the validator.
Anyone who holds DOT can be a nominee.
Verifiers can be simply understood as miners, and miners get DOT from mining rewards.
What is the mechanism of NPOS? What is the relationship between nominators and validators?
First, to become a miner, you need to get votes from nominees.
Not everyone can become a miner. To become a miner, you must get the top votes. The nominator needs to pledge DOT to the Polkadot network to be able to vote.
For example, currently Polkadot has set that only those who get the top 197 voting DOTs can become miners.
If it is just a simple rule, then the nominee does not have any preference on who to choose as a miner. Who to vote for or not to vote for does not seem to have any bearing on the nominee.
So NPOS designed the second principle, the interest alliance of nominators and miners.
Once the nominator finishes voting on the nominator, an interest alliance can be formed between the nominator and the validator, and the mining rewards received by the validator will be divided between the validator and the nominator. The ratio of this share is called commission.
This commission is set by the validator himself. If it is set to 100%, all the mining rewards received by the validator will not be distributed to the nominator. If it is set to 10%, the validator will get 10% of the mining rewards, and the remaining 90% will be shared by all the nominees of this validator.
How will the 90% of the mining rewards be distributed among the nominators?
The third principle is that nominators are distributed proportionally by staking DOT.
For example, if the validator has been nominated by 100 DOTs, the nominator who pledged 10 DOTs can get 10% of the remaining 90%.
Among the nominators, they will be distributed according to the proportion of DOT obtained under the name of the validator.
It's a bit complicated, so Uncle Jian will give an example to illustrate.
Suppose Xiao Wang and Xiao Li hold 10 DOTs and 20 DOTs respectively. They found that Xiao Zhang is very kind as a verifier. 1%, and the rest goes to voters.
Therefore, Xiao Wang and Xiao Li voted all their DOTs to Xiao Zhang, and Xiao Zhang successfully became a miner of the Polkadot relay chain.
When Xiao Zhang received 100 DOTs for mining, he kept 1 DOT for himself at this time, and the remaining 99 DOTs were distributed to Xiao Wang and Xiao Li.
Between Xiao Wang and Xiao Li, because Xiao Wang accounted for 1/3 of the 30 DOTs voted by Xiao Zhang, Xiao Wang got 33 DOTs, and Xiao Li got 66 DOTs.
With this setting, nominators will obviously choose to vote with a low number of staked DOTs.
Jianshu summary
Jianshu summary
At present, the assets issued by various public chains cannot communicate with each other, so they must be operated through centralized exchanges, which also makes centralized exchanges grow stronger.
But centralized exchanges have also caused various problems, such as user assets being stolen, misappropriated, and so on.
Therefore, the emergence of Polkadot is a milestone in the history of the entire blockchain technology, and it also allows the blockchain to truly enter the 3.0 era.
The real core value of Polkadot is to connect all existing chains and make them interconnected, achieving the effect of 1+1>2.
Many investors have also seen the value of Polkadot, so before the mainnet went live, the price of the currency had risen by nearly 1 times in a row.
Polkadot must be connected with other blockchains to allow data and value to flow between the various blockchains in order to truly withdraw the value of Polkadot.
In the following articles, Uncle Jian will take everyone to analyze what ecological applications are currently surrounding Polkadot, and what are their values.
