Text | Edited by Nancy | Produced by Bi Tongtong | PANews
Text | Edited by Nancy | Produced by Bi Tongtong | PANews
The hot spots that come in turn are writing round after round of wealth stories in the encryption market.
At present, Polkadot is still short of the full launch of the main network, but will the overdraft of the secondary market be good for the future? Often used by the outside world to compete with Ethereum, what are the odds of Polkadot surpassing "Qianlang"? Polkadot, with its own "birth halo", really has a bright future? Listen to how Polkadot projects are judged.
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Polkadot was stir-fried, from ecological imagination
With the intensive progress of the Polkadot mainnet, the FOMO sentiment in the market has been gradually stimulated. Especially in the past few days, after Polkadot completed the 1:100 token split, it pushed the atmosphere of market discussions to a higher peak. According to CoinGecko data, in the past 7 days, the price of Polkadot has increased by 43.2%, with a total market value of 5.93 billion US dollars. In just a few days, Polkadot has surpassed many established public chains such as EOS and ADA. In the eyes of many radical investors, Polkadot has the momentum of "stepping on EOS and pointing at Ethereum".
The price and popularity of Polkadot are also high, and there are Polkadot tokens. While the Polkadot ecology is gradually growing, many exchanges are actively participating in the construction of the Polkadot ecology, such as the establishment of the Polkadot Ecological Fund to support project development. With the enthusiastic participation of major exchanges, tokens such as KSM, EDG, RING, and KLP have all started a rising market (as shown in the figure below).
Under the frantic speculative sentiment in the market, Polkadot and Polkadot's ecology are likely to further explode. "Look at the landing in the long-term, and look at the hype value in the short-term." The rise of Polkadot was once considered to be repeating the old path of EOS, and it was more of "a lot of thunder and little rain". As we all know, once the star project EOS has been completely reduced to the position of repeated speculation by speculators, it will never return to its former glory.
"A large part of Polkadot's popularity is that there is no better ecology or imagination in the market. This popularity is not fueled by the Web3 Foundation." Phala founder Tong Lin told PANews.
According to Liu Yuzhu, Acala’s global core open contributor, the continued unabated popularity of Polkadot depends on each user’s own imagination of the project. He explained to PANews that based on the most basic theory, the company’s value is the result of discounting future cash flows. More and more people understand and know the vision that Polkadot wants to achieve, and it has also attracted more and more community building to join. At the same time, since 2018, starting from Kusama, the first network, Polkadot has taken every step very cautiously. Even if there is a problem, Polkadot can solve it immediately, without affecting the development of the project at all, and all the functions to be realized in the white paper are being realized step by step. Therefore, it is more important for investors to really pay attention to the ecology of the project itself and the progress of technical products than to blindly enlarge their imagination.
Although this technical master left Ethereum due to different development concepts and other reasons, Polkadot, which he created from a new stove, is born with its own brilliance. In October 2017, Polkadot used a Dutch auction to complete its first fundraising of US$144 million; in June 2019, Polkadot sold 500,000 DOTs to institutional investors in the second round of financing, with a valuation of 1.2 billion U.S. dollars; in July 2020, Polkadot’s third round of crowdfunding sold a total of 302,000 DOTs and raised 3,949.57 bitcoins.
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Do not compete with Ethereum, aim at a broader market
The strong ability to attract money, the aura of the founder, and the positioning to make up for the lack of performance of Ethereum make Polkadot often compared with Ethereum in the industry. "When Polkadot was born, the initial vision was Internet Web 3.0. Therefore, although Ethereum has a first-mover advantage now, it cannot carry the business of blockchain in the long run. The high transaction fee of Chinese DeFi projects has become a high threshold. Among them, the biggest difference between Polkadot Ethereum as shown in the figure is governance and flexibility. The Polkadot community has control, and any new Internet technology after the community votes successfully , new cryptography results can be added to the chain, and resolutions are also automatically executed. Imagine that people with different skin colors, different languages, and backgrounds around the world do not know each other but can form a consensus and implement it through voting, and there will be no oligarchs. Monopoly governance, and always accept and learn new technologies to achieve rapid upgrades and face the future." Liu Yuzhu said.
He also added that Polkadot is more flexible than Ethereum. Ethereum 2.0 is essentially an upgrade of the smart contract platform, and the relay chain launched by Polkadot does not have smart contracts, and development on top of this can choose to support smart contracts. More concretely, as a Layer 0, Polkadot supports blockchain applications with strong flexibility and security. You can build any potential commercial technology applications on top of it. Taking Acala as an example, we will be Polkadot The first parallel chain in the ecology to build a global open financial business ecology, creating the most important stablecoin system in the Polkadot ecology, and helping all DOT holders to increase asset utilization. In addition, compared to the high fees of Ethereum, Acala launched Flexifee (multi-currency payment fees), users can choose flexibly according to factors such as market prices, asset conditions, network status, etc., similar to WeChat's choice of priority payment By paying a fixed-value service fee, this lowers the threshold for users to enter the Polkadot DeFi ecosystem. "
Therefore, in Liu Yuzhu's view, whether Ethereum can compete with Polkadot is not important. The entire Polkadot ecosystem will connect all valuable assets in the future, so whether it is ETH or BTC, the focus should be on markets outside the encrypted world, and the most important thing is to realize the "out of the circle" of blockchain projects, products, and technologies of.
He further pointed out that although the current development ecology of Ethereum is unrivaled, the Polkadot ecology has been supported by a very large number of real developers through two years of tireless work by the web3 foundation, and its developer ecology should be second only to Ethereum. Among them, the Substrate conceived by Polkadot is indispensable. In fact, this is already a set of frameworks that blockchain practitioners are familiar with. Its ease of use, flexibility, upgradeability, easy cross-chain, and highly customizable features make it the most popular blockchain development framework for developers. In terms of development framework, Ethereum 2.0 currently appears to be highly isomorphic. Tong Lin believes that this is a disadvantage: because the requirements of different blockchains in the world have various characteristics, only a heterogeneous sharding design that supports a high degree of customization can meet the long-tail requirements.
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Showing off skills will only lead to a dead end, tapping users is the key
At a time when the currency price is soaring, the Polkadot ecology has shown a prosperous atmosphere, and various projects are actively exploring the road of development. At the same time, in order to contribute to the core business of Polkadot, Tong Lin said that not only the Swiss non-profit organization Web3 Foundation will provide targeted rewards for the ecological construction of high-quality projects on Polkadot, but also many projects from other ecosystems. Migrated to Polkadot. Among them, the Web3 Foundation has funded 129 ecological projects with an amount of up to 6.45 million US dollars.
At present, the entire Polkadot ecosystem has gathered nearly 200 applications, covering cryptocurrency wallets, verifiers, forums, browsers, and various projects based on Substrate (as shown in the figure below, such as privacy, bridging, DeFi, smart contracts and data classes, etc.).
Liu Yuzhu told PANews that as we all know, ecological construction is more important than technology, and more and more encrypted asset investment funds have established Polkadot ecological zones. Whether it is technical feasibility or ecological mobility, Polkadot is very compatible and rich, which can be seen in the future ecological development.
Although the outside world still has doubts about Polkadot's ecology, its technical strength is beyond doubt. For example, if "one-click coin issuance" is a label of Ethereum, then "one-key issuance chain" is a feature of Polkadot. Once upon a time, due to the extremely high requirements for network scalability and security, the technical difficulty and cost of public chain development were very high. The Polkadot-based development tool Substrate allows developers to develop a brand new blockchain in just 15 minutes, which is really amazing. This is also one of the crucial tools for the future blockchain ecological explosion. As another example, Polkadot, as a heterogeneous multi-chain technology, mainly consists of relay chains, parallel chains and transfer bridges. With the support of these infrastructures, the assets and data between independent blockchain networks can be exchanged, which is expected to open the era of Wanchain interconnection.
Advanced technologies and concepts are the inevitable development direction of the future world, but they will only be superficial and blindly show off, and eventually they will enter a "dead end". As the pioneer of Web 3.0, Polkadot's technology has been widely recognized by the outside world, but its "repair" is particularly tested on the road to commercialization without a pioneer. "Commercialization is a step-by-step process. Parity developers put all the functions needed to build a blockchain into Substrate's framework. Substrate was created in a modular way to provide technical freedom, but also to make things such as accounts, balances Functions such as management, governance and smart contracts are as easy as plugging into a library. Substrate effectively separates the various functions of the blockchain into modules. When using and accessing Polkadot, developers can quickly build them up. It is used in the application built by oneself." Liu Yuzhu said.
He also said that since Polkadot has not been online for a while, there are no particularly mature commercial landing projects for the time being, but as far as technology is concerned, Polkadot does not have too many technical problems and challenges. The key to the challenge is to tap user needs, get rid of short-term speculative mentality, and truly create sustainable business services.
And Tong Lin reminded that many people have a misunderstanding that Polkadot is a public chain, and they need to be responsible for the preparations for landing (smart contracts, TPS, friendly account systems). In fact, the object of Polkadot's "landing" is the parachain, rather than directly facing the "landing". At present, Polkadot's parachains include DeFi, smart contract chains, privacy, storage, DID, IOT, etc., and almost all classical blockchain sectors that are oriented to landing are present. At this stage, many European companies have also used Substrate to develop industrial-related businesses, and some domestic alliance projects have begun to use Substrate. From the perspective of Internet thinking, traffic * conversion rate * unit contribution value = total value, multiply the above items by a conversion rate of "cross-chain demand", and you can get how many landing scenarios will bring Polkadot ecology. business value.
So in the business using Substrate, who has cross-chain needs? Tong Lin pointed out that there are two points of input here: 1. The marginal cost of using Polkadot cross-chain in the Substrate chain is extremely low, and there are parallel lines that can be used; 2. Which landing business does not require off-chain trusted computing? Which does not require decentralized storage? Which doesn't need a DID? Which one does not require mortgages or loans?
Although there are different opinions in the market on the topic of "cross-chain such as Polkadot is a false demand", as Tong Lin said, just like DeFi was sprayed to pieces by the outside world in 2018, it can still rise.
