Written at the beginning: This article does not elaborate on Polkadot’s technical concept, but conducts an in-depth discussion from the perspective of Polkadot’s investment.
The enthusiasm about Polkadot continues. In addition to the rising currency price and the upcoming slot auction, the discussion of "value network" has been brought up again. On YouTube and Twitter, most voices see Polkadot as the key to getting rich in the cryptocurrency space in 2021.
First review the market performance of Polkadot Polkadot since its launch:
In July 2020, Polkadot Polkadot token DOT began to be listed on major exchanges one after another.
From August 2020 to December 2020, the price of DOT has remained at around US$5. As of December 28, the total market value of DOT still does not exceed US$5 billion.
On January 7, DOT reached a high of $10.6788, and DOT ushered in the first wave of skyrocketing. The currency price rose by more than 100%, and then began to pull back.
On January 11, DOT fell to $7.15.
On January 15, after a few short days of corrections, DOT continued to break new highs, and its total market value surpassed XRP, rising to the fourth place in the total market value of cryptocurrencies.
On January 17, the second surge of DOT ended, creating an all-time high of $19.3939.
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(Picture: DOT market source: Huobi)
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Slot VS node who is the king of capital
Polkadot Polkadot's more intuitive rising market logic is its powerful technical structure. According to the introduction, the goal of Polkadot is to build a scalable blockchain architecture. By building a powerful and shareable security system, different blockchains with different functions can coexist and communicate with each other.
Gavin Wood, the founder of Polkadot, mentioned in the first community meeting when sharing the vision of Polkadot Polkadot:
"Bitcoin has opened up the basic scripting language, Ethereum has expanded more financial transaction methods, and Polkadot hopes to create a more general model. On this basis, we also hope to solve some basic scalability problems Problems, like how to close more transactions, how to deal with the super-large amount of work on the network. So these two topics are symbiotic, which is generality and scalability.”
“Make blockchain great again.”
Compared with BM's stereotyped "what if I told you", the slogan of "making the blockchain greater" seems to be extra loud.
But looking back, Polkadot seems to be repeating the old path of EOS in some places.
On May 23, 2018, Benz Finance released an in-depth analysis of EOS.
At the time of the EOS supernode campaign, it attracted all the big names in the global digital currency industry, and the "Wenzhou Gang" also brought 4 billion to join. Among the teams participating in the global campaign, the Chinese team accounted for the majority.
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(Picture: Polkadot Polkadot ecological TOP10 project source Twitter)
Compared with the competition for "centralization rights" in the EOS supernode campaign, the Polkadot Polkadot slot auction is more valuable and competitive due to its complex architecture and technology. The difference between the two is that the EOS super node election is the distribution of governance rights, while the Polkadot Polkadot slot auction is the distribution of usage rights. The same is that whether it is campaign or ranking, after all, capital comes first.
The Polkadot Polkadot slot auction rule is called "Candle auction." This auction form was widely popular in the 17th and 18th centuries. No one knows when the auction will end to avoid bidding at the last minute. At that time, some bidders observed that the wick of the candle was always slightly opened before the candle was about to be extinguished, which provided a reference for the bidders to a certain extent.
The auction of Polkadot Polkadot slots uses a modern variant of the "candle auction". During the auction process, the auction program will randomly select the time to end the auction, which can also avoid auction sniping. But at the same time, it needs to be clear that the purpose of the Polkadot Polkadot slot auction is to maximize the number of DOTs bound within a two-year period. preferred.
The inevitable result of rising market demand is that the price of DOT tokens rises.
The Polkadot Polkadot vision is obviously that its ambitions are not limited to this.
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Who is the king of performance
People will say that Polkadot Polkadot is the king of performance, and it has long-term value for the development of the overall ecology of the blockchain network, and the price will inevitably be expected in the future. So, what is the fundamental need for cross-chain?
Solve congestion and improve performance.
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(Picture: Polkadot Architecture Diagram Source: Polkadot Chinese White Paper - Translator: Yue Lipeng)
Most people who have seen the architecture diagram of Polkadot will say that this is an overly complex blockchain structure.
Cognition is only one aspect of making money. Judgment, gambling, capital, timing, etc. are also key factors. (Blockchain William)
Polkadot Polkadot is regarded as the number one benchmark of Ethereum. After the fall of EOS, it has to shoulder the heavy responsibility of blockchain 3.0.
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(Picture: Polkadot Polkadot trading volume on January 20)
The total transaction volume of the two on January 20, 2021 is 1,213,930 (Ethereum) and 10926 (Polkadot) respectively. From the number of transactions in a single day, Polkadot Polkadot and Ethereum are not of the same order of magnitude.
According to Polkascan data, when Polkadot had high transaction volume in the past few days, the peak data was 6 transactions per minute, while in non-peak hours, the minute transaction volume of Polkadot Polkadot will be less than 6 times. The average number of transactions per minute of Ethereum in December 2020 exceeded 850, about 142 times that of the former.
To compare the value from the market value of tokens, according to coingecko data, the current global market value of Polkadot Polkadot is 17,701,333,681 US dollars, and the global market value of Ethereum is 161,863,271,819 US dollars. Polkadot Polkadot accounts for about 10.94% of the total market value of Ethereum, but its The transaction volume generated is only 0.7% of that of Ethereum.
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What is Blockchain 3.0
With the explosion of DeFI technology in 2020, the performance requirements for the underlying public chain of the blockchain have become more urgent.
Whether the performance and decentralization requirements can not always be perfectly resolved.
Decentralization has always been a solution to over-centralization. In ancient times, there was a "system of three provinces and six ministries" under the centralization of power. In the end, it was overstaffed and officials were too busy to do anything.
As mentioned in the Polkadot Polkadot white paper, Polkadot Polkadot will provide a feasible way to natively support kernel scalability, and can practically support global business-level scalability and privacy.
From the development of blockchain 1.0 to the smart contract of Ethereum, blockchain technology has never lacked innovative gimmicks in the process of developing to the 3.0 stage. We have reason to look forward to a more diversified blockchain ecology, but the core technology to solve transaction congestion and performance problems is still the foundation of the current development of blockchain technology.
