Polkadot review: Year of the DOT.


Market Context.

The cryptocurrency market and the blockchain industry has an unavoidable law as it has always been a market with a high elimination rate. Some projects caused much "hype" in the community, raising the FOMO funding to one billion US dollars. However, they eventually fell out of the top 10 on Coinmarketcap because the product was unsatisfactory, such asĀ  EOS or NEO. Technology is changing day by day, and if a project cannot keep pace with changes, it will be forsaken in a few months.

However, some projects do not attract "hype", and nobody knows. One day you will see their name in the top 10 on Coinmarketcap. Polkadot is one of those projects. Although it was only listed on Binance in August 2020, Polkadot had entered the top 10 on Coinmarketcap in late 2020 and early 2021. At the time of writing, Polkadot's token (DOT) is traded at $9.2, and it is ranked seventh on Coinmarketcap with a market capitalization of $ 8.2 billion. Many investors and fans of the cryptocurrency market have never heard of Polkadot. Still, they do not understand how an "anonymous" project can scale to a higher position than the once-popular Chainlink.

If you are one of those folks, please read this article to learn more about the DOT and its potential.

The history of the formation of Polkadot.

Although it has a history of development in 2016 or even 2017, Polkadot did not attract people's attention until mid-2020, specifically in August, when their Mainnet was successful. Two weeks after the Mainnet went live, the DOT project's native token jumped into the top 10 on Coinmarketcap.

Since then, there have been many comparisons between Polkadot and Ethereum due to the similarity of their objectives. It is understandable when Polkadot is named the "Ethereum Killer", even if the project's founder, Gavin Wood, has highlighted that DOT does not compete with ETH. Interestingly, without ETH, there will never be DOT. The reason is simple: Gavin Wood is one of the co-founders of Ethereum.

Importantly, Dr Gavin Wood is the one who wrote Ethereum Yellow Paper. He also created Solidity, a programming language for building smart contracts on Ethereum. It can be said that without Gavin Wood, there would be no Etherum today. However, in January 2016, tired of the speed of the ETH 2.0 release, Gavin Wood left Ethereum (he was the CTO of Etherum at the time).

After leaving Ethereum, Gavin Wood began developing a new project with the goal of "finishing things that Ethereum cannot do". In late 2016, the Polkadot whitepaper was introduced. Since then, Ethereum has had a Tech challenger, unlike 90% of the projects used to state that they could challenge Ethereum but ended up being an exit scam.

Why is Polkadot important?

Polkadot is a project with many advantages, and of course, it is also the most complex blockchain project I have ever researched.

To grasp an understanding, you must first figure out the concept of interoperability, which is one of the main advantages of the project. In short, interoperability is the ability to communicate between blockchains. Currently, most blockchains have their own "language", which makes working between two different blockchains relatively tricky. Many projects have emerged to solve this problem; however, Polkadot's vision is beyond that. It is the concept of decentralization of the entire Internet, starting with Web3.0, allowing everything to communicate with each other.

Then there is another question, what is Web 3.0? Does it have future potential?

Web3.0 is both a related and unrelated concept to the blockchain. To better understand, Web1.0 is the beginning of the Internet when it is mainly used locally in institutions and the US government. The amount of content on Web1.0 is relatively limited and fragmented.