Bloomberg: the Polkadot network breaks the hegemony of Ethereum in decentralized applications

The launched „next generation“ Polkadot network is aimed at the attention of developers of decentralised applications (dapps). Its special feature is the ability to create its own blockchain and its interaction with other networks, writes Bloomberg.

The publication is reminiscent of the Outlier Ventures report, which reflected a 44% increase in the number of Polkadot-supported dapps developers in the second quarter. This is the best result among 11 competitors. In Bitcoin and Ethereum, their number decreased.

„Polkadot stands out in terms of design as well as community size,“ Messari researcher Wilson Whithiem shared his opinion.

According to PolkaProject, 267 projects have already been launched in the Polkadot network – from stemcoins to social networks. In early September, there were just over 200 of them, and the network itself was launched only in May.

Unlike Ethereum, where dapps work with smart contracts, Polkadot is a protocol for the interaction of different blockades. Developers can decide what transaction fees to charge and how quickly to confirm transaction blocks in digital registers.

„We will see many innovative products that are difficult to deploy in a smart contract environment. For example, gaming blockbusters that ensure that there is no room for cheaters. Or blockchecks inside consortia,“ explained project founder Gavin Wood.

According to Wood, the unorthodox name Polkadot (cloth to peas) most accurately reflects the essence of the idea of dapps – the lack of one centre.

The Polkadot Tokensale took place in 2017. At that time the project attracted $145 million by selling 5 million DOT. But there were not enough funds for development, and already in 2019 the project re-sold tokens. According to WSJ, after that the project’s capitalization increased to $1.2 billion.

In August this year, after the denomination of DOT and the addition of the Polkadot token to the listings on the leading trading platforms, it entered the top 10 in terms of cryptographic market assets. At the time of writing, DOT has moved up to number eight with a capitalisation of $3.76 billion, according to CoinGecko.

„The market value of Polkadot is only a tenth of Ethereum. Our hypothesis is that Polkadot has a higher chance of becoming a competitor to Ethereum than 10%,“ Dan Morehead, head of Pantera Capital, shared his forecast.

Earlier, block-start-up Interlay announced plans to launch a 1:1 PolkaBTC token secured with bitcoin in the first quarter of 2021.

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