What is ecology since the beginning of Polkadot?

Polkadot announced its first Parachain contest on November 12 of this year, and Polkadot is talking about an ecological treaty event, once again booming and becoming a hot spot in the market.

There are two reasons people in the industry like Polkadot.One is creator Gavin Wood.Gavin Wood, co-founder of Ethereum and leader in the development of blockchain technology, wrote the “Yellow Paper” of the Ethereum specialization.

thenAnother key is the DOT token.According to Footprint Analytics, the impact of DOT token data has increased over the past six months as follows:

The -DOT currency price hit a record high of US $ 54.98 on November 4 and the current price is US $ 42.3, up 2.4% in the past 24 hours.

-Polkadot's current market value is $ 1.762 billion, down 37% in the past 24 hours.

-Polkadot market value is currently 44.448 billion, 8th of total network, 1.132 billion DOT in total, 1.051 billion DOT in supply and 93% around value, so the token around Polkadot is better. charming.

Analysis of current Polkadot data (as of November 2021) Data source: Footprint analysis

Polkadot TokenPrice_Growth by Date Data source: footprint analysis

01

About Polka Dot

Founded in 2015, Polkadot is positioned as a next-generation blockchain protocol that will work seamlessly at scale by integrating multiple dedicated blockchain networks into a single network.It is a public channel which can have several channels and adopt a competitive heterogeneous multi-channel system.

Polkadot addresses scalability, speed and cost issues, allows multiple stand-alone blockchains, enables interoperability and chain conversion, and allows chains to self-regulate.

Besides supporting token exchanges, Polkadot also supports token exchange information on different chains.

Polkadot also includes three key communications:

-relay saw,Responsible for the network integration, security and connectivity of the chain link, the Polkadot keychain can be seen as the 100 hole chain link.

-parachain,It plays an important role in the calculation of market data and data, considered as other electronic components in the cable connection, with more equivalents, it can complete the horizontal blockchain scaling and solve blockchain functioning problems.

-on the other side of the bridge,Allows network and wireless networks to connect and communicate with other networks such as Ethereum and Bitcoin.

It was designed to solve the unification of the independence of the islands at the expense of Ethereum, much like a bridge over a bridge.

02

How Polkadot differs from the Ethereum network

Throughout the blockchain development process, the elderly were excited about the prospects for marketing and research and development quickly, but the next generation saw the gaps between their predecessors and stepped up to focus on the industry.

Likewise, "Blockchain 1.0" provides a powerful way to manage funds, but without the ecosystem, "Blockchain 2.0" support, Ethereum programmable tools, provide smart contracts, Ethereum network congestion, high trading costs , etc. To solve the problem, it is confirmed that "Blockchain 3.0" appeared in Ethereum Layer2, Sidechain Polygon and other community industries.

And Gavin found Polkadot,Establish a significant foundationThe design of the public chains with different constraints and different characteristics is linked to the base by interconnections, allowing to interconnect the data of different intersecting chains, which is also a congestion problem in the Ethereum network, which is difficult and difficult to solve cross. - saws. data interaction.

What is the difference between Polkadot and Ethereum?

-in sharding technology.Ethereum has a chain of 64 fragments, but the structure of the chain is the same, like the relationship between "computer host" and "computer extension" which means homogeneous. Parachain provides the most recent, updated and continuous Parachain model.

-In terms of system changes.Ethereum follows a complex existing fork (which is easily understood to mean incompatibilities between old and new versions), while Polkadot uses the Wasm (WebAssembly) meta-protocol, first using a new chain switch without a fork. .

-Management mechanism.Ethereum is generally based on governance management and the development of the Polkadot network is determined by the DOT holders.

-mechanism kev pom zoo.Ethereum switched to the PoS mechanism after using the PoW mechanism to make it more efficient and save capital, in fact, it requires more power and more capital, so it's not really new. Polkadot uses the NPoS mechanism. (Name of Proof of Interest) Validators are selected by the author, so they are cheaper and perform better than Ethereum.

Whether it is an update to the blockchain version or the result of Polkadot, it is about improving the entire blockchain ecosystem, so that more users can have a better experience and better performance.

03

Tam sim no Polkadot Ecologie

Polkadot Token Price Trend Chart Data Source: Footprint Analytics

If you look at the different prices for DOT tokens, you can see that Polkadot is hotter in August. Ecology and results of the Polkadot Ecological Project.

According to Polkaproject statistics, the current Polkadot ecological project is510+, infrastructure, tools, wallets, stability coins, DeFi, DApps and more.

Current green activities include Kusama, Acala, Moonriver, Phala Network, Parallel Finance and others. In this sentence, we have selected Kusama and Acala for analysis.

Kusama is Polkadot's pioneer network.

Kusama network yog hu ua "canary network".This was the test of the network before the launch of Polkadot., which is the same as Polkadot's previous criticisms and disagreements. To ensure the security of the Polkadot network, it has been released to first test the Polkadot network in a manner close to the real Polkadot environment.

Kusama TVL data source: footprint analysis

Kusama Market Capitalization Data Source: Footprint Analysis

The overall rating (TVL) rose 250% in one day to $ 2.03 million, from $ 580,000 on Sept. 22, according to Footprint Analytics, and TVL now exceeds $ 3 million, according to Footprint Analytics. After early April, the market rose again in August and is now worth $ 3.3 billion.

The development of Kusama has many factors contributing to the development of the Polkadot ecosystem, and heterogeneous cross-chain information interactions are becoming more and more popular.

Kusama will serve as a “field proof” where participants can create and use the Kusama Network Parachain or test Polkadot administration, make promises and prove it.on the one handAllows future participants of the Polkadot network to practice upstream.on another side, Polkadot's new projects involve unknown risks. Any work related to procedures and the working environment is the first test of the Kusama network. Therefore, Kusama offers a pioneer network value of the project.

Akala is the heart of DeFi

Acala is a Polkadot parachain optimized for DeFi.It is the business center of Polkadot and now has a strong market presence and a top place in the competition. In terms of funding, Acala doubled the total to $ 8.5 million. The investments were led by Polychain and Pantera Capital respectively.

Acala is a leading business and financial stability platform, offering extensive support for liquidity, stability and usability between blockchains.

Acala has now completed 3 phases.

- Oversized Decentralized Currency Stability System: According to the Honzon protocol, the stable AUSD is based on the oversizing of multiple assets, and the principle is similar to MakerDAO's DAI.

Liquidity authorization: For users of DOT / KSM mining contracts, DOT / KSM can be converted to Liquid DOT / Liquid KSM by Homa protocol. If the value of the bond decreases during the term of the contract, the value of the bond will be reduced.

- Decentralized exchange (AMM DEX) with automated trading platform: similar to Uniswap and Pancakeswap.

Acala's vision is very broad, for example, MakerDAO started specializing in fixed income spending since early 2019.

04 ib

Polkadot Single Facility Parachain Slots Auction Method

Following the announcement of the competition on November 12, the price of Polkadot's DOT token has recently increased. Why Parachain Slot Machine Auctions?

is,Parachain allows Bitcoin and Ethereum networks to connect mobile devices, so if you need permission to use Parachain, you can join the competition.

candles,According to data published by Polkadot, the number of parachain slots is limited and can now only support up to 100 connected networks, indicating that this type of cross-chain service is only available for 100 public channels only. Polkadot Parachain is restricted, so use certain services to ensure security and availability on all public channels.

Then you must own a large portion of the DOT in this Parachain restriction to be able to take advantage of services that communicate with other utilities.

In addition, Polkadot initiates a random candlelight vigil. For example, before the “control candle” goes out, the highest bidder wins the competition. Other candle auctions have greater integrity and reduced visibility of the oligopoly effect, but this approach is uncertain. There is a good chance that the "control candle" leaves after the first contestant and the total competition income will be lower. And other drawbacks ...

According to the rules announced by Polkadot, all can be used from 6 months to 2 years. Over time, without renewal, Polkadot blocked the right to communicate between Parachain and other public channels.

However, Polkadot will close the end of the Parachain contest product and return it to entrants after the expiration date. , this is also true. You need to factor in the cost of DOT. Even if the prices fall, there will always be losses.

In short, although parachain slots have their own innovation, they can provide low cost heterogeneous communication services for projects or users, but also dangerous stuff and glitches.

05 ib

Details of the advantages and disadvantages of polkado

Advantages of Polka Dot:

-among othershub central, provides interconnected data from public channels with different characteristics, and brings flexibility and innovation to the channel plan.

- the same timeEfficiency, save a lot of money and money.

- Provide a way to bring projects closer to the real worldPre-test, proactively try new projects for unknown risks to ensure network security during operation.

Polkadot Defaults Examples:

- Parachain slots auctions require the same number of DOT tokens as liability, and the closing time is longer.any risk of loss;

- Polkadot also requiredAbout all kinds of green technology and loopholes.;

-Describe the fixed fund that is the basis of DeFi.: Stable results are important in determining the ecological prosperity of all public channels, including Polkadot. Whether it's using proprietary materials to create stable value or cross-chain direction, Polkadot could have a place in the DeFi market.

It has been 6 years since Polkadot was founded in 2015. Compared to other public channels like Solana, ecological improvement is not accelerating. Recently, it has gained popularity again due to Parachain competition.

In order to improve the whole Polkadot ecosystem, the diversity and extension of the chain must be further realized in terms of a vision of "better performance and greater efficiency of the links in the chain".

For more reliable data and insights on the blockchain ecosystem, click the Footprint link to view more project dashboards and content analytics.