How does Polkadot manage to capture value in its business model?

the story

Now, the craze for public channels has passed for some time, but it has not yet shielded some public channels from new competition, the public channel TVL has not been reduced, and some steel channels have also solid materials.

And if we look back on these public channels, we see that they have used certain incentives to raise funds to participate in the creation of public channels, and similarly, so that everyone can participate in ecological construction. public channel. will be. The “red envelope” method The point is that this method has been shown to be very effective and efficient, which has allowed the benefit of some public closures like Avalanche and Fantom to go faster than $ 1 billion.

As public health services continue to grow, we also recognize that the tokens carried by the public chain ecosystem are working well, which has also led the chain to implement the similar process to attract customers. In this context, Polkadot, which is also the main “public channel”, does not yet seem to show similar signs.

Therefore, in the face of the various development methods and directions of Polkadot and other public channels, where are the prices behind and how should we measure the prices of Polkadot? And, can he distribute the benefits of using Polkadot?

How does the Ethereum public chain capture value?

In an era when DeFi and NFT were hot, Ethereum, worthy of its name, became the largest blockchain platform, its market value increased, and the gap with Bitcoin tripled.

In addition to Ethereum's own thriving ecosystem, Ethereum's success is due to the design of its business model.

In addition to the ETHereum ETH exchange itself, the Ethereum network also supports the exchange of several Ethereum-based project tokens. However, whenever you change the tokens, you have to pay ETH based on the miner's price. For the same, many other companies. Both chains have an Ethereum-like design. It is this design that makes Ethereum easy to grasp.

As Ethereum is going through a long period of early and gradual ecological development of its own ecosystem, the most important thing is that it is still in use by many projects, participants and developers, including many forms, please perform tasks between DeFi and NFT. It has created a huge pool of Ethereum capital that increases a lot of talent, users, and finances, which is also Ethereum's profit network itself.

In these investments, people have to pay ETH based on the mining cost of each step, and for various reasons, they still have to play Ethereum, which is a constant demand for Ethereum. Due to the large number of users and budgets, there are many new projects in demand on Ethereum as well. So for Ethereum, there is also a significant market for new applications.

So, we can look at a business model like Ethereum as a fiscal model, and any job that wants to use Ethereum's supercomputer will have to pay ETH, even if you use any of the above functions.

This value capture method is used when it involves multiple application tasks. Since these apps usually come with small bonuses, there will be a demand to use them. If this demand is large enough, a large chunk of ETH will have to pay taxes to increase the cost of ETH.

This business model means that even successful Ethereum applications will force users to pay fees for the Ethereum network, like many large sites online today (not listed here). . Of course, such a design also increases the value of the token, but it puts a heavy load on the entire blockchain ecosystem of the project.

Where is Polkadot worth?

Unlike most public channels, Polkadot's own models are different from the usual models, and the design of business models is also very different.

For other public channels, we will be referring to the Ethereum model when it is developed, as many Ethereum developers have matured and commercialized and believed possible.

However, Polkadot differs because Gavin, the founder of Polkadot, was the first person most familiar with Ethereum. abandoned this idea when he created Polkadot.

The design of Ethereum and other similar chains is that when users pay for tokens using ecosystem functions, receive services, and enjoy features, they have to pay ETH in addition to the Ethereum network and pay two fees. .

The Polkadot Design System is entirely focused on Independent Ecology, and all Polkadot Ecology users can access the functionality of these functions at no cost to the Polkadot Network miners. The only thing users need to use are the tokens needed for the green project, and they only need to pay a small fee.

The reason why the pea was created this way is in the first place. Ethereum was built on Bitcoin, essentially making it programmable and bringing ETH into Ethereum only to pay the exchange rate and prevent spam transactions. This is the main objective. From this point of view, the foundation of Ethereum was to rest on the shoulders of Bitcoin, and many models of Bitcoin will also be used and respected, so when creating Ethereum, the founders of Ethereum are basing themselves on what 'he does not see. . It would be better to use blockchain technology, but this development even brings some Bitcoin issues to Ethereum. New Ethereum smart contracts are profitable, but the industry design expects users to pay high fuel costs, and is very expensive and unusable.

As a result, Gavin was aware of the problem that it is the case, such as connecting to the fertilizer, and then do not have to set the right elements. . According to ..., the wavemant does not have account and call settings. Don't worry about the cost of gas. No position to pay the point. The design is to support the easier and easier and easy guidance. Therefore, the first heart rate of chain machine is a new development industry and the improvement of the business is generally found in a business business. Since the beginning of the beginning is to solve a new problem. The waves gavin is the generalogist, and there are people with real engineators, ellonia and functions. This design model is always used micro to use Weavka ecology supports using Ecology of Wavology to support users. According to the engine of Ether Fang economic Model design standards are the use of the user, so the writer fry is stress. But don't worry too much. These reasons can't apply to a car yard because it is the grass, so every person can not know about the simple value. Participants are very difficult. The reason for the card is detected.

How does Polkadot capture the price?

So how Polkadot captures value depends on its key role: integration or connectivity.

Polkadot designed a chain of relays and parachain architecture. The Parachains must go through the junction of the chain to the connection line with the other Parachains. Public channels with a non-parachaine structure must go through the bridge. The slots of the relay chain will benefit from the cross chain function. Therefore, in order to take advantage of the work through the chain provided by Polka Dot, it is necessary to secure the chain link.

To get a hole, it has to go through the Parachain Slots Auction, and the competition is joined by guessing the DOT number, and the Parachain Slots Project can be used for 6 months to 2 years. At the end of the day, the DOT offer was returned and the open was repeated.

This is equivalent to using that of DOT to rent Parachain slots, and participants receive tokens for the promised Parachain project by selling at that price on DOT. The method of interconnecting the data link has to be competitive for each data connection, and the DOT has paid real money for it.

These two methods lead to one of Polkadot's value capture methods. In other words, any job or individual who wants to take a job in a chain should use DOT. In other words, if the Polkadot parachain was well designed, more manufacturers could access the Polkadot ecosystem to create better jobs, and improving these projects would impact DOT. . Delay the cost more.

It was an accident and another was when Polkadot's right to cross the chain was identified as a big industry. For example, there are many BTC or ETH assets or applications that traverse the chain to the Polkadot ecosystem on a transport bridge. It also excels in a variety of applications, increasing the demand for communications, increasing the demand for DOT, and enabling Polkadot to capture greater value.

Additionally, there is interest in public parachain which could be a key factor in capturing Polkadot's value in the future. Public Interest Parachains cannot have their own tokens and must be able to use DOT as an extension or design business model. Therefore, he may announce DOT-based smart contracts in the future, and how to shut down ecological financial and public support to support the price will be a job. Taking the existing Statemint as an example, it plays a key role in advertising assets such as CBDCs, various tokens, stability coins and NFTs. If the development of the Polkadot ecosystem is very good, even the acquisition of assets by Statemint could increase the demand for DOT and capture the huge cost of DOT.

Although the Polkadot process captures long-term value, it has a direct impact on improving costs in a way that is less constraining for the development of the entire ecosystem. , but it differs from the design of similar chains such as Ethereum, which are not suitable for ecological development. If we look at things in a dialectical way, we can certainly move towards products that are cheaper, faster, and easier to use. Therefore, regardless of the size of the Ethereum ecosystem, how it benefits draws blood from the entire ecosystem, and it is not a guideline that follows the rule of development.

Because Polkadot's method of capturing the true cost caused stress on the project itself, Parachain slots were sold and could be leased for up to two years. According to Gavin, he hopes to use this technique as a test for his project. If the project is going well, you can end the lease. If the project is well designed, you can just modify the code to use the locations. , using parallel threads. This effort will help eliminate lies and preserve the truth, especially jobs that only raise money cannot survive the second round. Polka dot ecology.

However, Polkadot's capture rate can be seen from another angle similar to the standard measurement on the internet. It seems that JD.com turns red every year, but its cost has increased so much that it has been able to raise more money for it, due to its excellent performance and long term outlook.

So, what he is doing at Polkadot level is to connect the whole blockchain to become an integral part of the industry, and this is important because it contributes to the development of the whole industry of the long-term blockchain, and the cost of capture is. ecosystem development and will increase together. Currently, the TVL of several pioneer networks operating on Kusama, such as Karura and Moonriver, is in the hundreds of millions of dollars, while public channels such as EOS and Tezos which have been operating for years only amount to several hundred million dollars. dollars. . Conflict.

As a result, the situation in Kusama has already started to improve from the Polkadot ecological project. By this time, with the improvement of Polkadot, more and more people knew and paid for Polkadot, just as those looking for value on JD.com had higher hopes for JD.com.

Polkadot authorities also fully understand that ecological plans are necessary for the growth and development of Polkadot, which is why they have taken various measures to support the development of Polkadot ecological projects.

1. The benefit budget has been adjusted, so there is no ceiling for grants. 2. Launch several hackathons to promote and support your project. 3. Follow the "Developers for Developers" start. The aim is to share the previous experience of the Substrate Builders program with this Parachain team and to provide ecological support to the development of the project to help the Parachain project to improve. We support the entire Polkadot ecosystem by creating our own ecosystem and creating a thriving community of developers. So, not everyone has to worry about the price of Polkadot.

The above is a summary of the current situation and Polkadot's work through the public interest channel and parachain. The scalability of Polkadot, the cost of the new integration between Parachain and Parachain, is greater in itself. For example, high-end development brings more to Polkadot's NFT ecosystem.

Polkadot NFT models typically include the RMRK with more robust features than Ethereum's ERC721 and ERC1155 models, and these robust models support better NFT or unmanned game plans. Again, look at the project from an enhanced perspective.

P.s.

Just as Polkadot announced the special episode of the Parachain contest a week ago, it looks like we're finally launching the long-awaited parachain feature. It can have a big impact. , as described above, depending on whether the Polkadot ecosystem can improve health and sustainability, attention should be paid to the success of the ecology or parachain project, which introduces the important values ​​of Polkadot.

Of course, in research we can continue to focus on improving Polkadot's green projects and how Polkadot fits into the adult chain that already exists, and the type of clearance across the chain will be at middle of them. This is another area of ​​Polkadot value capture, and there are some important connections that are worth watching and follow-up as well.

As famous composer Ke Ling said in "Xiang Xue Hai", "The old man of the time always does the same thing, but the meaning and value of time is different." To be fair, the delivery of the results and the effectiveness of the results will be very different, as each descendant will determine the method and the results are similar.