The Polkadot Parachain auction is coming soon. Can heterogeneous chains break public chains in the Red Sea?

Currently, the ecological development of Ethereum Layer2 (Arbitrum, Optimism, etc.) of the EVM system and other isomorphic chains (BSC, Polygon, etc.) is in full swing, and many other heterogeneous public chains are also working. EVM compatible solutions and Ethereum compatible account systems (Aurora from NEAR, Neon from Solana, Moonbeam from Polkadot, etc.).The end result of the public chain is unknown, and Polkadot also has the potential to serve as a "meta-protocol" connecting other blockchains.

Suede duab 1: EVM chain versus non-EVM chain (Polkadot), Source: Ray @IOSG Ventures, original photo courtesy of Getty Images (Spain vs Italy 2012)

Figure 2: Number of TVL contracts and registrations for each channel (October 19, 2021), Location: Defilama

Value analysis: the end result is not clear, Polkadot will always be the Layer0 metaprotocol.

Polkadot is looking for cross-platform connectivity,It provides integration and enables extensibility.Traditional blockchains are usually islands. For example, without a bridge, it would be impossible to transfer data from the Bitcoin blockchain to the Ethereum blockchain.

Polkadot is a "meta-protocol" which aims to connect all blockchains so that data can be processed together.In other words, Polkadot's goal is to implement a legitimate Layer0 solution that connects all Layer1 blockchains (such as Bitcoin and Ethereum) and their applications (such as ERC-20 tokens). The idea is "Settlement executor??

The Parachain Layer0 relay chain overturns the existing Layer1 smart contract chain system.

Polkadot has developed a new Ethereum Layer1 smart contract system, and Polkadot's relay chain can be seen as Ethereum, and parachain is similar to many business rules / smart contracts / design tools.

The most direct benefits of this are:Since then, Contract Marketing / Dapps can choose to operate on its own blockchain (parachain) with notably independent devices. At the same time, each Parachain can communicate with each other through interconnected communication while using independent resources.

Figure 3: Parachain Layer0 relay chain system by Polkadot, Source: "Polkadot Prime" by Mira Christanto & Wilson Withiam

Figure 4: Architecture of the Polkadot technology stack, source: IOSG Ventures

Estimation of the interconnection of different datasets that improve the structural integrity of the data targeted in the approval process

Based on the new Parachain Layer0 relay chain architecture architecture innovation in 1.1, the Polkadot team of experts has devoted a lot of energy to developing solutions to modify data on heterogeneous chains. For this, they did two things.XCMP Standard Message Transfer Protocol XCM standard message structure.

Daim duab 5: Heterogeneous channel information transfer technology stack, Source: Polkadot wiki

Infrastructure business model innovation - Parachain auction economy

First of all, although parachain auctions are actually a battle for capital, we believe parties will spend less time having blockchain as a way to invest independent business to foster development and implementation. work of their own business. sense. logic.

Unlike other series 1,The developers of Parachain de Polkadot don't have to worry about security, costs, and other issues that they should worry about building a chain in the past.

In terms of collaboration,Parallel chains can communicate with each other and send data using chain links as data routers.

Second, Crowdloan is worth mentioning when it comes to the Parachain auction business model.

Same users (DOT holding):By providing DOT liquidity, regular tokens can be obtained from affluent clients.

Parties to the ecological project (parallel calls for tenders):Get the first benefit of Mover when you start your project.

Polkadot Infrastructure:Many DOTs have been promised to improve process safety

DOT promises liquidity problems:Many people have been interested in DOT for a very long time to join the crowd, but there are already some green activities that claim a solution. For example, Acala recently announced a competitive parachain slot - a product that unlocks products for lcDOT.

In a recent interview with Chico Crypto, Gavin Wood said Parachain is ready. Application number 118 has been submitted to the Polkadot Council, and if nothing else is done, the parachain will begin the competition on November 11.

concludes

Recently, the market said directly that the movement against the chain of maximalism of the last few years is over (Ethereum is different). Ethereum now appears to be the true cross-chain support for Web3, designed by Polkadot a few years ago.

However, we believe Polkadot may still break his wrist with the Ethereum blockchain in the short and long term.For the following reasons:

love love :

Based on the findings of the Kusama Parachain auction, we can predict that the income and contribution of the participants in the Polkadot Parachain auction will be much larger.The reason is that, compared to the capital investment methods of other chains, Parachain auctions, a unique business model, are more secure and offer a better return on investment for entrepreneurs.

He hopes the huge investment will engage eco-friendly entrepreneurs..

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Strong ease of use from substrate chain developers (also easy to create custom blockchains);Polkadot's vision of greater tolerance for heterogeneous blockchains has always united many honest producers.(If the parachain competition had not yet started, there would now be nearly 500 ecological projects, and the average annual growth in two years could reach 60%)

Polkadot has accomplished the most difficult but most important feature over the past three years: heterogeneous blockchain interoperability. It is impossible for an industrial model in the field of technological innovation to be developed in a short period of time, and the blockchain industry is still in its infancy. personal account system,However, in the long term, since the global blockchain is still different, we believe that heterogeneous blockchain communication (heritage, data interaction) has long term value.