Will Polkadot surpass Ethereum?

Missed LINK, DeFi and Ethereum, do you still miss Polkadot?

In the past week, Polkadot DOT has more than doubled. Polkadot's total market value reached 5.4 billion U.S. dollars, and successively overtook EOS, BCH, LINK and other currencies to reach the sixth position.

KLP, KSM and PCX, which are Polkadot ecological projects, have increased by 330%, 166% and 56% respectively in the past 7 days.

For a while, Polkadot replaced DeFi as a hot spot in the market.

According to Polkadot supporters, Polkadot integrates all hotspots such as cross-chain, DeFi, and DAO. In addition to the "King of Ten Thousand Chains", Polkadot also has the benefits of listing Coinbase and other benefits that have not yet been realized. More importantly, "all the funds will go to Polkadot." Breaking $10 is only a short-term goal.

In the eyes of Polkadot’s opponents, Polkadot may be just the next EOS. They also vowed to surpass ETH, and also said that they will do Internet 3.0. A similar approach: EOS nodes previously campaigned to buy coins, while DOT was a parachain campaign. Coins seem to be a reincarnation.

It is difficult to make a conclusion about which is right and which is wrong, but none of them can stop the rapid advance of DOT and its ecological tokens.

Is Polkadot hype or real demand? After crossing EOS, will Polkadot surpass Ethereum?

Polka makes wealth
The rise of Polkadot has given birth to a group of upstarts in the currency circle.

Since the completion of the split, DOT has a sun line, rising for 4 consecutive days, reaching a new high of 6.3 US dollars.

If some time ago, some investors were still regretting that they missed the surge in DeFi and LINK. That Boca seemed to give them a chance to get in the car.

"Missing Ethereum in 2014 was a stain on our investment career. Fortunately, after two years of Boka ecological track, I finally got a lot of pride." said the founder of a blockchain fund.

What is Polkadot? This is a scalable heterogeneous multi-chain system, developed by the Parity and Web 3 Foundation led by Gavin Wood.

Gavin Wood’s original explanation is that it is actually a network of networks, and it will eventually become a network of networks. In other words, it can be combined. It is a platform for blockchain innovators. You can use this platform to create new business logic and integrate it into a system without falling into the effect of the network.

"Polkadot integrates all hotspots such as cross-chain, DeFi, DAO, etc." One wave of card investors said that all public chains can bridge Polkadot, DOT plays DAO governance, and all ecological assets can be DeFi. In his eyes, Polkadot is omnipotent. ChainX CMO Kristen said, DOT=ADA+XTZ+ETH2.0+EOS+ATOM

"The public chain is the center of the ecology, and Polkadot is the center of the public chain." In the eyes of some investors, Polkadot is already the next Ethereum-level investment opportunity.

In the past week, Polkadot DOT has more than doubled. Polkadot's total market value reached 5.5 billion U.S. dollars, successively overtaking mainstream coins such as EOS and BCH, and came to the sixth position. "The furthest distance in the world is that you are already speculating on Blockchain 3.0 Polkadot, and I am still playing with Blockchain 1.0 Litecoin."

Not only Polkadot, Polkadot ecological currency also has a prominent increase.

"The currency circle is now Polkadot, and Polkadot ecological currency shows its talents." An investor said.

The project in the above picture is called the Polkadot Ecocoin, and has seen large and small increases since it went online.

The miracle of wealth brought more attention to Polkadot and Polkadot ecology. On the other hand, some old people in the currency circle recalled the summer of 2018, the EOS super node campaign.

The next EOS?
It is reported that the Polkadot network module is mainly composed of three parts: Relaychain, Parachain and Brightchain. Polkadot can transmit data to all blockchains, realizing the circulation of assets and data between each chain.

"The most eye-catching thing about the Polkadot project is not itself, but the cross-chain ecology that may be built." Some investors said.

Cross-chain technology has been controversial before Polkadot, mainly including lightning network, side chain and relay, but it has not been mature. Cross-chain is mainly divided into asset cross-chain and contract cross-chain. Cosmos can only do asset cross-chain. In addition to asset cross-chain, Polkadot can also perform contract cross-chain, but the premise is that the access chain has the same consensus.

In short, if Polkadot is to establish a cross-chain ecology, it must condense the consensus of other public chains and applications. This is why Polkadot pays attention to ecology.

Polkadot ecology is divided into 3 sections:

Node validator (POS Bakerz, Polkadot.pro)
Kusama network (Kusamak is faster, suitable for pre-trial and early deployment, Polkadot is slow, and executes some low-risk, high-value applications)
Polkadot substrate infrastructure (ChainX, Darwina Network, MXC, Edgeware, OCEAN Protocol, CELR)
As early as the end of 2018, the Web 3 Foundation initiated and founded by Polkadot founder Gavin Wood launched a funding plan to fund open source projects related to Polkadot and Substrate (Polkadot's open source modular toolkit). Each project can get Up to $100,000 in funding.

At present, the Polkadot ecosystem has more than one hundred applications/subjects, covering cryptocurrency wallets, verifiers, forums, browsers, and various projects based on Substrade, such as privacy, bridging, DeFi, smart contracts, etc.

Many people compare Polkadot with EOS. There are many similarities between the two. For example, they both expressed that they want to surpass ETH and do Internet 3.0, which requires the support of node/parallel public chains, which also triggered a market boom.

In June 2018, before the EOS mainnet went live, it rose to a maximum of $22, and its market value once reached $17.6 billion. It is 3 times the market value of Polkadot and 6 times the market value of EOS.

But in fact, Polkadot and EOS are quite different in terms of ecological construction and support. Two years after the EOS mainnet was launched, Block.one, the development company behind it, used US$1.7 million to fund 34 projects, while the Polkadot Web 3 Foundation had funded 129 projects with a total amount of US$6.45 million before the mainnet was launched.

Under EOS's huge financing, Block.one held up to four or five billion US dollars, but most of it was replaced by Bitcoin and U.S. Treasury bonds during the bear market.

EOS does not pay attention to the internal ecology or even internal fighting to consume it. Previously, the members of the Meet.one project condemned EOS in the statement that Block.one did not consider the boundary issue in handling the internal relationship of the EOS ecosystem, which caused dissatisfaction with the internal Dapp project of the ecosystem. For example, the API made by EOS New York was directly used by the Block.one development team. Take it away and claim that it was developed by its own team and was ridiculed as the wool of the project party within the community.

So, two years later, EOS became a dreadful old man, and was overtaken by the new generations such as LINK and EOS. They could only watch them go away.

Under the continued downturn of EOS, many investors switched to Polkadot. In an EOS community, Block.one, EOS, and its founder, BM, seem to be crossing the street. "EOS is a public chain with average speed. It really lacks features and innovation. It is an ordinary public chain that completely imitates ETH." These former EOS evangelists said.

At present, Polkadot DeFi ecosystem has launched several projects such as Stafi, Acala and Sora Network.

"Old Leek thinks it is the next EOS, but New Leek thinks it is the next Ethereum." Recently, there has been a saying that the former is regarded as a model of "hype" and the latter is defined as a value investment.

Can Polkadot surpass Ethereum?

The above-mentioned investors said that Polkadot is leading in technology, but it is ecologically incomparable with Ethereum and needs to complete the ecological layout before ETH 2.0 goes online.

Ethereum killer?
"If Polkadot's parachain system can run smoothly, it will surpass Ethereum just around the corner." Some investors said.

"One-click to issue coins" is the consistent slogan of Ethereum supporters, and Polkadot supporters have a more powerful slogan-"one-click to issue chain".

Polkadot’s development tool, Substrade, supports one-click chain issuance, and you can issue a chain of your own within 15 minutes, and you can also issue tokens on the chain. In addition, on Polkadot, users can design not only their own chain, but also their own economic model.

But in the eyes of expert players, the main difference between Polkadot and Ethereum lies in on-chain governance. Polkadot reacts quickly and upgrades quickly. Any new technology and cryptography can be added to Polkadot's chain, and these require community voting to implement.

Lane Rettig, a member of the core technology of Ethereum, once stated that the governance of Ethereum has failed and that "it is actually the rule of technical experts."

On Ethereum, the creation and submission of EIP (Ehereum Improvement Proposal, Ethereum Upgrade Proposal) is open to everyone, and then handed over to the core development team for review and voting.

Behind the seemingly decentralization of the Ethereum community, it lacks a promotion mechanism, resulting in inefficiency. For example, the previous Constantinople hard fork was originally scheduled to take place in November 2018, but because the community has not yet reached a consensus, it was postponed to March 2019.

"The development of the Polkadot network is determined by DOT holders." A management group is composed of active token holders and the board of directors. Decisions on network upgrades must go through a referendum. Governance process: initiate a referendum-vote on proposals-statistics.

Voting rights are calculated based on the total amount of tokens and the lock-up period. Ensure the minimum economic investment while avoiding ticket selling. The board of directors is on a regular basis for one month, representing DOT stakeholders, and interest is the biggest motivation.

The only purpose of the technical committee is to detect problems such as code errors, and does not make direct decisions on governance. Members can be added or cancelled by the council.

The Orange Book used to compare the two visions of Ethereum and Polkadot: Ethereum's vision is to use the ledger of Ethereum to help villages/various economies around the world to keep and settle accounts, while Polkadot has to use it. The ledger of Jilian keeps accounts for other villages. Both are essentially ledgers.

However, compared to Ethereum's almost no threshold, developers must pledge a certain amount of DOT in the Polkadot chain. Projects that require a high degree of stability need to be involved in the parachain, and for some verification projects with low transaction volume, parallel thread channels can be used, similar to "shared bicycles."

The resources of the Polkadot network are limited, and the number of parachain slots is also limited. In the first year of Polkadot's main network operation, with the realization of technology, the number of slots in the parachain will increase from about 5 to 50 to 200.

Except for some reservations, limited slots will be rented through "candle auction" mortgage DOT. Each slot has a usage time of 6 months to 2 years.

Both node pledge and parachain slot need to lock DOT. This also makes Polkadot face the issue of pledge release in the future.

The current Dot mortgage rate is 70.2%, accounting for nearly 70% of the total. Polkadot browser Subscan data shows that in the next month, the market will face unlocking selling pressure of 66.89 million DOT.

Compared with the data on the chain, Polkadot is still a long way from Ethereum. Ethereum's daily active accounts are around 600,000, Polkadot's daily active accounts are around 12,000, which is only 2%. Polkadot's market value (5.6 billion) is 13% of Ethereum (43.226 billion).

However, the Ethereum community is also afraid of the rise of Polkadot.

In 2019, the former core developer of Ethereum, Afri Schoedon, enthusiastically praised Polkadot on Twitter, saying that Polkadot has reached the effect that the fourth stage of Ethereum Serenity wants to achieve. Therefore, it was called the "traitor of Ethereum" by the community and exited Ethereum community.

Many projects within the Ethereum ecosystem have also begun to turn to Polkadot. Aragon is a decentralized autonomous project based on the Ethereum ecosystem, but it also maintains a delicate relationship with Polkadot. At the beginning of this year, Aragon announced that in addition to supporting Ethereum, it will also support Polkadot.

"Is the Ethereum killer really coming?" In the Polkadot community, someone raised such a question.

In 2016, Ethereum experienced a fork crisis. The Parity team considered creating a sharded version of Ethereum independently. Gavin Wood realized that it would take at least 5 years, or even 5-10 years, for Ethereum 2.0 to become a reality, so he decided to leave Ethereum and start from scratch. In the history of business, there are too many stories about the founding members leaving and then resetting the project, and there are very few who have completed beyond.

Four years later, Polkadot went online and stood on the same stage as Ethereum. At this time, the war between Polkadot and Ethereum has just begun.

How will Polkadot continue to develop? Just as the investors of Dot said, in the blockchain world, Polkadot is a brand-new face, with no black history, no lock-ups, and is driving to a place that has never been reached.