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0/ For the last month, we've been looking into the emerging @Polkadot ecosystem to find out if it has substance or if it's just another “Ethereum Killer”
Today, we released a report outlining the basics of Polkadot and highlighting a few standout projects https://www.delphidigital.io/reports/polkadots-defi-stack/
Today, we released a report outlining the basics of Polkadot and highlighting a few standout projects https://www.delphidigital.io/reports/polkadots-defi-stack/
1/ Polkadot adopts on-chain governance in a big way, integrating it into the core of the network and every proceeding layer. This is a world apart from $BTC and $ETH, both of which make decisions through rough off-chain consensus.
But is this better? That remains to be seen
But is this better? That remains to be seen
2/ On-chain governance has become a major talking point off late. But it’s roots go as far back as 2016 with @decredproject implementing governance on L1 and @MakerDAO pioneering governance amongst DeFi apps
3/ Network architecture:
With ETH 2.0, the Ethereum blockchain is divided into 64 pieces, called shards, which are connected via a base network called the Beacon Chain. Each shard has its own validator set
With ETH 2.0, the Ethereum blockchain is divided into 64 pieces, called shards, which are connected via a base network called the Beacon Chain. Each shard has its own validator set
4/ Polkadot's Relay Chain is similar to the Beacon Chain, creating the infrastructure for blockchains built with @substrate_io to seamlessly connect to Polkadot
These independent blockchain are called “parachains.”
These independent blockchain are called “parachains.”
5/ Polkadot’s network topology is straightforward
Up to 100 parachains can exist on the relay chain, all of whom borrow their security from the Polkadot network
While these networks enjoy the same level of security on Polkadot, there are micro level risks for each parachain
Up to 100 parachains can exist on the relay chain, all of whom borrow their security from the Polkadot network
While these networks enjoy the same level of security on Polkadot, there are micro level risks for each parachain
6/ Jumping to the app layer:
One major advantage Polkadot has is being able to piggyback off Ethereum’s success so far. And thanks to the @web3foundation's efforts, there are already teams at work to build Polkadot's app layer
One major advantage Polkadot has is being able to piggyback off Ethereum’s success so far. And thanks to the @web3foundation's efforts, there are already teams at work to build Polkadot's app layer
7/ Projects like @AcalaNetwork , @LaminarProtocol , @ReefDeFi , and soon to be @akropolisio are pushing the DeFi aspects of Polkadot forward
For the near future, I think the infra layer is where investors and devs will and should focus most of their resources
For the near future, I think the infra layer is where investors and devs will and should focus most of their resources
8/ Polkadot’s relay chain doesn’t natively support smart contracts. So aspiring parachains like @HeyEdgeware , @Plasm_Network , and @MoonbeamNetwork are creating the necessary infra for smart contracts to exist on Polkadot
9/ Sharing a teaser of @HeyEdgeware because I found it exceptional how they've approached development of the network and building a community.
Close to 90% of tokens were effectively given away for free through a distro mech called the “lockdrop”.
Close to 90% of tokens were effectively given away for free through a distro mech called the “lockdrop”.
10/ Skepticism:
$DOT's design is elegant and hits scalability issues really well. But there are some question marks
First, on-chain gov is unproven and young. Decred and Tezos have been pushing on-chain gov for a while, and they haven't been as successful as supporters imagined
$DOT's design is elegant and hits scalability issues really well. But there are some question marks
First, on-chain gov is unproven and young. Decred and Tezos have been pushing on-chain gov for a while, and they haven't been as successful as supporters imagined
11/ Second, Polkadot’s app layer is a recreation of Ethereum. With scalability improvements coming to Ethereum via L2s and ETH 2.0, it remains to be seen if there’s a genuine catalyst for builders to fully migrate or even create a mirrored instance of their protocols on Polkadot
12/ To conclude, I’ll be watching @Polkadot and $DOT intently to see if the network can accrue developer mindshare and users. I think it’s superior to most other L1s and can be the project that finally succeeds in bringing effective on-chain governance on L1s
13/ If you want to learn more about the projects that stood out to us and Polkadot’s basic mechanics, peep this report! https://www.delphidigital.io/reports/polkadots-defi-stack/
