Interpretation of Polkadot's 10 Myths: Climbing Too High, Crossing Chains Is Pseudo-Demand, Industry Standard Is Not Enough

the story

In 2016, Gavin Wood completed the Polkadot whitepaper after leaving Ethereum. After a long period of research and development and exploration, the project across the Polkadot Range has reached historic milestones. start-up stage. Five years later, Polkadot finally acknowledged the vision outlined in his free 2016 letter.

Unlike the larger Ethereum, Polkadot's development has also been slow, and many users and teams had high hopes for Polkadot.

However, Gavin Wood's ability to be the person behind Ethereum's technological know-how is beyond doubt and he left Ethereum to realize his new vision of creating a free and truly open platform.

Therefore, a long and stable atherosclerosis also made it difficult for Polkadot to maintain his altitude, and all the research, development and planning took time. Besides the fact that most countries are now entering winter, the spread is also affecting global markets. Some misconceptions about peas in the context of business ethics are exceptions.

Therefore, we have organized it according to the questions most concerned and asked by the community, and we hope that our answers will help our readers to better understand Polkadot.

10 misconceptions about Polkadot

Polkadot increases by 10% per year

PolkaDOT's first round confirmed that the DOT was 10 million, and in August 2020, the DOT names were distributed. So, the first total new DOT post is 1 billion, and then it's announced every year, and there is no maximum limit of all the announcements.

As explained earlier, many people interpret Polkadot's price increase as a 10% annual increase, but is that true? To understand this issue, you must first understand that Polkadot is inflation.

In general, Polkadot creates part of the DOT by raising prices and distributing these DOTs to specialized groups to support players in the management of the Polkadot network and ecological development.

Because Polkadot uses NPoS to select stake witnesses in order to reach consensus, he has two roles: voter and witness. This giveaway is created by the additional distribution of tokens, creating an increase in value.

In addition, Polkadot Treasury is an organization created by Polkadot to promote the development of the ecosystem, including DOT created by inflation, DOT cut by the system due to fraud, part of exchange rates and the blocking competition in online connections. Together they have created an ecological money lake, Stake donations and the Polkadot Treasury are the main destinations for money after Polkadot inflation.

The total Polkadot price increase typically includes the following: (i1) increasing the guarantor amount and selected prices by adding tokens, (i2) increasing due to additional savings, and (i3) reducing deflationary due to fraud), (i4) deflation of exchange rates.

The formulas are: Added value = i1 i2-i3-i4 and i1, i.e. the need to provide additional tokens to validators and nominees, depositing the majority of the increase in value, an important factor increase in total cost.

In order to fully understand this agreement, it is necessary to fully understand the procedures of the Ministry of Finance. including capital increases. Some unused funds have been destroyed (this is also the same combination for all Polkadot), but i3 and i4 are not part of the same upgrade, so i1 i2 is equivalent to doubling i3 and i4 counts. So we need to remove i3 and i4 here.

To repeat, we find that Polkadot has an inflation rate of less than 10. Because part of the DOT was burned by the procedures of the Ministry of Finance.

According to official data, the current inflation rate in Polkadot is 7.8%.

Polka dot inflation is too high and there is no deflation mechanism

First of all, Polkadot has a disaster recovery process. In the financing of Polkadot, the Bank broke a certain percentage of the final percentage of all expenses (24 days for Polkadot, 6 days for Kusama) (Polkadot is now 1%, Kusama 0.2 of the balance)%) not found.

Second, inflation is not a beast, but a very important factor in improving growth, and reasonable inflation is good for economic development.

It seems that deflation increases its value in Bitcoin, but on the other hand, deflation means that the value of money is slowly increasing, making people reluctant to sell and spend money, and the speed of cash flow is an advantage. the notion of reducing the flow of money into the economy, shrinking the economy and reducing the importance of the economy as a whole, is not necessary for the improvement of the economy.

Of course, in the case of Bitcoin, its value increases due to deflation, and it is close to the asset market relative to silver, and exchange rate fluctuations inhibit circulation.

However, the logic of Polkadot differs from Bitcoin. Although Bitcoin itself is positioned as a mere asset, Polkadot's DOT is an important resource that is widely distributed and must be used in the Polkadot ecosystem. This is why I say that deflation has no effect on the development of the ecosystem.

But on the one hand, inflation makes you feel like the money in your hands is slowly depreciating, so the financial situation needs to be discussed on a case-by-case basis. Excessive inflation can lead to a slowdown in activity. In fact, Zimbabwe, Venezuela, etc. described this situation well. Excessive inflation in the crypto industry greatly affects the holding of tokens and other financial markets beyond this increase, so no one always wants to hold it for long.

Raising capital is necessary to encourage funds to move to more profitable assets and accelerate the flow of tokens into the market, increasing the overall volume of the market, which helps improve the economics of trading.

In the Polkadot ecosystem, the solutions are more profitable in terms of the design processes provided, for example, Polkadot puts rewards on the price and owns similar tokens, thus obtaining an ecological position via a second competition. You can save money.

So, if some people think the price of Polkadot is going up, they can save some money by joining the Polkadot mechanism. So this process is also a scam for DOT holders to join Polkadot mechanism. A better design idea would be to support Network Eco Development or Polkadot.

But even after seeing this, I think there will be friends who still think polka dot inflation is going up 7-8%, so let's be a real example.

CPI for our country CPI over the past decade, official data averaged 3%, but the real perception is certainly not. Since real estate is not included in the CPI, the cost and growth of other commodities is not always the same.

It can be measured using other estimation models. In other words, inflation = growth rate M2 - GDP growth. In this way, our rate of increase over the past ten years has been around 7%. So we've been living with inflation for too long, do you think that's amazing? Plus, Polkadot has players who can beat inflation, so why not?

Of course, some friends ask questions, and even if the DOT fluctuates and drops, even if you can prevent inflation with financial management such as staking, all the money is lost. What can I do? This will test the problems of some functions, in fact, functions such as site management and some protections can prevent all problems caused by the loss of DOT, which is not considered an allowance in green development.

Finally, you can adjust Polkadot's price increase. Polkadot is a subdivision of the public channel with administrative characteristics, in the design of Polkadot, many things cannot be changed by election management. For example, the Treasure Polkadot destroys a certain percentage of the balance, and this percentage can be adjusted.

As in our reality, the country declares more money on the one hand and settles the financial crisis on the other hand by a certain monetary policy, such as increases and decreases in interest rates and rules of rise and fall. . , so that their own economy develops in a relatively neutral state.

Likewise, in the development of Polkadot, there are two announcements and other damages to support the development of the ecological mechanism of Polkadot, and this process can be controlled by management, so that Polkadot can design well. Learn more.

Polkadot is all used by Asians and little success can be achieved if the rules are strict in certain areas.

In the community comments, many fans also asked Polkadot users. They think only Asians play Polkadot. In fact, many important documents from this period confirm this.

Previously, Gavin Wood had announced Polkadot's annual figures for 2021, according to official data, to date around 350 groups have received investment and financial support, 3.5 times more than last year, and around 50 people in 2021 alone. He raised over $ 670 million in total in initial capital (seed and series A).

Secondly, the number of political users of Element (chat platform) from the Substrate and Parachain channels more than tripled from 2,500 to 10,000, and according to the report Electric Capital, the developer of the ecosystem of Polkadot is the leader, and he had many active people. This means more potential users in the Polkadot ecosystem.

Twitter is still the largest social media platform in the world (mostly users around the world), and Twitter data is an important indicator as well.

At the end of 2020, Polkadot officially had less than 100,000 users on the platform, but in just one year, the number of followers on their Twitter account grew to over one million, and the number of followers of the Kusama account also increased. increases. increases. compared to before. Increased from 30,000 to 200,000.

Polkadot is available not only on Twitter, but also on foreign social media platforms such as Reddit, Discord, and YouTube, and its followers keep growing.

In a nutshell, this massive data is enough to dispel the rumor that "All peas were created by Asians".

Polkadot is equivalent to EOS.

It's probably around the second half of 2020, but after the Polkadot mainnet goes live, the vaccine market is still available and its own performance is not enough, so many people have asked if it will be the next EOS despite heavy questions. . More than a year has passed, but those voices have resurfaced due to the recent market turmoil. I think we should reiterate that Polkadot won't be EOS, at least for a while.

First, it must be clear that the goal of EOS is to become a Standard 1 public channel, and improve its development by creating an ecosystem within the public channel. On the other hand, Polkadot itself is a Layer 0 concept, creating an ecosystem. multi-channel ecosystem rather than creating a single channel. aim to do. These starting points also lead to differences in development.

Second, the "best known" problem with EOS at the time seems to be the joke of believers at the time, the revenues were huge, but the security budget was not used to build the ecosystem, and even frozen for the EOS community by. DAO. Disclosure of facts regarding the official account.

Since its launch, Polkadot has contributed a lot to the development of the ecosystem through training, funding such as the Grant, Treasure, Hackathon and Substrate Builders program and the Web3 Foundation. As the fastest growing developer blockchain in 2021 ,.

Therefore, based on these principles, we conclude that at least the current development of Polkadot and EOS is not only due to market share, but all in two lines, and they have been confused with the same thing .

There is a problem with Polkadot's business model, and DOT is not effective in cross-cutting situations.

The cause of this problem is usually in the cross-chain process, for example, when Bifrost went to Acala, Bifrost's original BNC was eaten, and the DOT was not eaten in this process, many friends asked here. , the Polkadot DOT token will not be used in these cases. These situations do not create demand for DOT and make it difficult to capture costs. Is this a problem with Polkadot's business model?

First, it must be clear that this is not the case. Polkadot's business model should be viewed in terms of how things grow.

First, Polkadot is layer 0, and other public chains like Ethereum are layer 1, so it's always good to value the Capture method differently. Second, while Ethereum is now the largest blockchain platform, its business model is not good for consumers and each transaction has to pay more for the Ethereum network. It is a duty-free model for all users, because they need to pay extra for the Taobao platform when purchasing from Taobao.

Polkadot founder Gavin Wood, former Ethereum CTO and Ethereum leader to life in the engineering vision.

So, when creating Polkadot, he relied on the idea of ​​creating this Bitcoin-limited framework and instead focused on the ability of blockchain operations at the local level to accomplish traditional tasks to cause and avoid Ethereum problems. I'm thinking about it. square business model.

Combined with Polkadot's goal of building a broader platform and connectivity, the Layer 0 Metaprotocol, our decision on Polkadot should be based on the concept of the platform. The cost of the platform depends not only on the size of its own business, but also on the cost of its network effects. This is why JD.com is still popular with the capital after years of decline.

If you look at the big internet marketing platform nobody can pay anywhere and become a giant, everyone is free on side C and trust the network involved to pay on side B.

Polkadot itself is a big company. In addition to their certifications, they also include Parachain certification, certification of ecological application in chains, and treasures of other public chains that cross the chain of transport. . At the same time, the design of Polka Dot, which only pays for the B side like Parachain and the white C side, best matches the principle of product development.

Finally, don't ignore the demand for DOT, especially in the Polkadot ecosystem, while Polkadot is still under construction. There will be some public interest in parachain that will benefit all DOT holders, and its operation will be free from other tokens. Another major use of DOT is the use of DOT to run Parachain which provides activities related to the public interest.

The polka dot we see now is only at a very early stage, and it is still far from the polka dot state.

If Polkadot connects more parachains, there is more thread balance and more interest in utilities, then the demand for DOT in the Polkadot ecosystem would be really great. . However, the real development of Polkadot is still in its infancy and will take some time.

Using Ethereum on Polkadot is useless.

It is obvious that today EVMs have resisted a lot. Many new chains were quickly adapted to their ecosystems by EVM compatible methods, creating larger EVM ecosystems. Most applications in the blockchain space are in EVM. ecosystem.

In the Polkadot ecosystem, Moonbeam is considered one of the best Polkadot green projects for integrating multiple devices with Ethereum's EVM, an Ethereum application from Polkadot. Although many public channels already have EVM support, it still makes sense to use another Ethereum from Polkadot.

The base architecture of Polkadot is different from other public chains, although it seems to be compatible with Ethereum in a new bottle of old wine, the base architecture of Polkadot has a lot of things are better and the results are better than 'Ethereum in PoW. The prices are changing lower and lower.

Ethereum used by Polkadot will also get other Polkadot features such as scalability, scalability, forkless modification, etc.

Now, with the completion of Moonbeam on the Polkadot network, its performance has also been extended to users supporting auctions. Seeing Moonbeam off to a good start, some friends say Moonbeam's success hasn't proven Polkadot's failure. This is because the Polkadot ecosystem has come and gone and returned to Ethereum's mind.

In fact, the idea of ​​a return to Ethereum cannot be considered a bad one, and we must adhere to certain rules of finality when looking at technological advancements.

The largest Ethereum and EVM ecosystem is now the most innovative with the most valuable developers and consumers and big bucks. Polkadot has the latest technology and more features. Using EVM in the Polkadot ecosystem is like using new technology to respond to existing technology. The funds are brought back into the Polkadot ecosystem, providing a variety of Polkadot ecosystems.

Isn't it a way to use the latest technology by collaborating with existing industry and gradually rethinking new technology?

Polkadot has been online for too long and has no ecology and cannot.

Polkadot is a layer 0 metaprotocol, which differs from the development of other layer 1 population strings.

In general, public Layer 1 chains can be restored across the ecosystem by installing DApps or DeFis tasks which can be user-friendly and financially compatible with a few developers in the community, and get started very quickly.

Polkadot is layer 0 and cannot bypass smart contracts. This would require the development of applications on these Parachains and then the development of a layer 1 Parachain that supports smart contracts before integrating the whole ecosystem. Polkadot has more public Layer 1 channels than other public channels. construction phase.

So, at the same time, other Layer1 public channels have already started running the app, and Polkadot recently set up Layer1 to make it look like Polkadot is not green.

But from another point of view, it seems to compare to the base level of Polkadot to the intermediate level of other works, and there is no real comparison.

However, part of the 1st layer of Polkadot has slowly developed and we believe that the ecological improvement after Polkadot will be very fast.

The Polkadot ecosystem is EVM type and attracts many developers and operators of the EVM ecosystem. Moonbeam and its pioneer network, Moonriver, have picked up many green projects in a matter of months and have identified this as a possibility. . And his TVL has become very well known to the public, so it would be incredible if Polkadot did not have ecology.

Once a project has been completed on the Polkadot parachain, most projects can be easily transferred to other parachains due to the many similar interconnected strings in the architecture. It appears to be opening stores in many cities soon. Chain links are also a way to increase the efficiency of these operations.

Therefore, it is easy to do a polka dot ecology project too, in this case I think there will be dozens of ecology projects in several parallel chains such as Moonbeam, Moon River, etc. An increase in the polka dot ecosystem is likely to occur.

Still with layer 0, Cosmos outperforms Polkadot.

Each project must be considered from a strategic point of view. The cosmos also has its own strengths and characteristics, and is good at solving certain problems in certain situations. Gavin was inspired by Cosmos to create Polkadot.

Just as the market value of Bitcoin is getting smaller and smaller in terms of the total crypto market value, the integration of the Ethereum ecosystem into the DeFi package has also been smaller. , and we are entering many open markets. In the age of multiple chains, where a hundred ideas are challenged, multiple chain links and connections will be the future improvement.

In fact, many parachain projects in the Polkadot ecosystem still support multiple chain links, selected as Polkadot and then extended to other public channels.

For example, Astar and Polkadot's Composable Finance both work on cross-chain virtual machines to cross existing chains. Deployed at Cosmos.

However, when the Cosmos inspired Gavin, the Cosmos did not match Gavin's vision, and in his opinion, the Cosmos on its own was not enough.

The Cosmos Zone has no options but uses the same design as Tendenmint. Developers cannot update the concept and must use the Cosmos SDK. Many blockchains don't add new nodes or add additional security. And now it is Polkadot.

Of course, in the future, many groups will choose Cosmos or Polkadot as public channels whose project can meet their own needs, but this does not prevent the way Cosmos and Polkadot communicate. So don't look at either position.

Cosmos now has some of the best, including star programs like Terra, but Cosmos has fewer developers than Polkadot as a whole. Polkadot has slowed its development because it started late and had many goals, but luckily Polkadot's parachain slot auction is now open and Polkadot's eco project is finally able to free its hands and seek to progress.

Now is the best time to look at the Polkadot ecosystem and do the starry things. You may want to spend more time developing the polka dot ecology, and unwanted results may occur.

Polkadot ecology is an ecology where everyone is made up of different chains and where there is no innovation.

First of all, it also runs on the train. Because the performance of the high-speed train and the green train are completely different, it uses the latest technology and a lot of quality equipment. Polka Dot, which uses the same older solutions as Pois. You will need to practice your new skills again.

Second, these Polkadot ecosystem parachains will also have many mature applications in other public chains such as AMM, securities, loans, etc. Just because these jobs aren't new doesn't mean the whole ecosystem isn't new.

For each public channel, we need certain features. Like cities, you always need renovations like hospitals and schools, so it's always necessary for the Polkadot Eco Project, and there are reasons for your needs. It's very simple, has been recognized by other public channels, and must follow Polkadot first.

Based on these principles, some new developments will slowly emerge.

For example, Moonbeam in the Polkadot ecosystem is referred to as Ethereum in Polkadot due to its similarity to Ethereum. Moonbeam supports classic NFT models in EVM like ERC721 and ERC1155, but at the same time Moonbeam is also compatible with Polkadot process, so some new NFT models like RMRK can also be used in Moonbeam compatible recovery. , to create new technologies.

These campaigns, like RMRK, are participating in a new way to publish blockchain network applications. In addition to RMRK, there's also Zenlink, Polkadot's first cross-chain DEX racing project.

So, Polkadot with the latest technology can solve old and new problems, and when the new solution, new tasks will arise, and these new changes are already happening in the Polkadot ecosystem, so be patient and invest time in it. Polkadot ecosystem. Don't draw conclusions.

The cross chain is pseudo-demanding.

We usually see how many USDT and USDT are broken on one chain before and how many are created on another chain. Stable coins like USDT and USDT rely on this method because there is no good way to cross the chain. The control devices for various open chains also indicate the requirements of the cross chain.

Take a look at the rise of WBTC on Ethereum. A year and a half ago, the market was at $ 100 million, but now it has a market cap of over $ 12 billion. Excluding the market value that goes into Ethereum, the number of Bitcoin assets has increased by about 25 times in a year and a half.

It also proves that the assets of some public chains hope to join a manufacturing industry that can add value to the ecosystems of other chains, which is the real chain in reality.

In the same sentence, don't think the cross-chain scene of Polkadot is not used by humans because Polkadot is in its infancy, but think the cross-chain scene is pseudo-please, so be patient. .

PS

From the 10 incorrect points above, we can see that some issues result and others change with the forex market. The good things show that everyone's hearts change, but when we are full of skepticism we have to be patient and go back to the old way of thinking and see the changes in themselves.

Since leaving the Polkadot mainnet, many people like to compare Polkadot and Ethereum. Of course, a lot less now. We recommend that you revisit the comparison of the two. Just a glance at the time, Ethereum before Polkadot. It is necessary to decline the ecological improvement after two or three years of life, but if the competition at the starting line is different, the latter is real if caught and still had no expectations at the initial stage. So you have to be patient. .

We are finally in 2022, and some misconceptions will disappear. In addition, a certain logic must be reconsidered. Of course, everyone's experience and logic of thought is different. We do our best to find the ground while recognizing the differences.