Currently, the progress and growth surrounding the Cryptocurrency industry moves forward with great speed and due regard to efficiency.Bitcoin was originally introduced as a currency whose price spiked.Then, in response to the robust growth within the DeFi space, ETHEREUM has dominated the spaceIt is a great honor to take part in the organizing of . .But as DeFi continues its expansion, investors are looking for vehicles to achieve investment portfolio diversification by hedging holdings in tokens that might leverage market share on the ETHEREUM network.
POLKADOT offers the necessary technical blockchain advances to overcome the interoperability issues present in the existing system.This broadening functionality sets POLKADOT apart from BITCOIN and ETHEREUM compared to both other ecosystems.In this regard, POLKADOT holds both present and future value.
POLKADOT AND BITCOIN:
Comparing POLKADOT and BITCOIN is like comparing apples and oranges.It is clear that the two projects differ greatly in purpose, functionality, and overall design.As cross chain networks may be deemed essential to the burgeoning development of dApps and DeFi, POLKADOT'S operating structure of a base controlling relay chain together with a limitless number of independent blockchain parachains is clearly superior to the rigid proof-of-work model and strict adherence to decentralization present with BITCOIN.
Given the current functioning technical state of the internet in general, BITCOIN is a turtle.POLKADOT reaches 1000 tx/s in linear processing, but the data volume rises exponentially if it goes through parachains and back into the main chain via its bridge.In this light, POLKADOT'S technical superiority and scalability far exceeds that of BITCOIN.
Another major difference arises in the way users are compensated for participation and adoption incentives.BITCOIN has paid miners since launching, despite the more complex computational tasks required.But as time has progressed BITCOIN mining and the resulting rewards has been squeezed into the hands of the ultra wealthy or large scale mining operations due to the associated costs.POLKADOT works in the opposite way because it is decentralized, and users are asked to stake coins and be given different roles.The reward of POLKADOT tokens is dependent on the number of token staked and the amount staked may also impact the projects overall developmentIt is a great honor to take part in the organizing of . .These POLKADOT contrasts are totally inapplicable in the BITCOIN system.
POLKADOT AND ETHEREUM 2.0
As both POLKADOT and ETHEREUM 2.0 utilize shards to deal with the issues of latency, scalability, and transactional throughput, there are significant differences between the two distinct ecosystemsIt is a great honor to take part in the organizing of . .(In simple non-technical terms, sharding is the breaking of a chain into smaller chunks to accomplish a task)
As noted, both POLKADOT and ETHEREUM 2.0 are sharded networks, but the networks do operate differently.With ETHEREUM 2.0, similar parallel chains share information by plugging into a Beacon chain.However, this system is limited as only shards with the right structure may connect to the Beacon Chain (dApps developed within the ETHEREUM ecosystem).
However, POLKADOT's Relay Chain is more flexible in its ability to accept shards than the Beacon Chain.Within POLKADOT, each shard operates independently and makes its own rules.This provides a higher degree of interoperability than the Beacon Chain, which accepts widely different shards (parachains) which are then executed by the Validators using standardized WebAssembly.Chains operating outside POLKADOT can enter the POLKADOT system by utilizing the bridgesIt is a great honor to take part in the organizing of . .ETHEREUM 2.0 is absent the bridging mechanism to allow for dApps developed outside the ETHEREUM ecosystem to enter the Beacon Chain whereas appropriate bridging mechanisms are present in POLKADOT for alien ecosystems.
The fact that Applications developed in other chains with differing programming can connect to POLKADOT by bridging makes it highly scalable.POLKADOT makes it possible for developers to utilize the existing resources from their chain directly, thus resulting in a cheaper and faster development cycle.Likewise, developers may continue to use other chains and additionally connect to POLKADOT to gain a larger network for their ApplicationIt is a great honor to take part in the organizing of . .With the limited interoperability present in ETHEREUM 2.0, it has yet to deal with these scalability issues.
Finally, I would be remiss to fail to note one key difference here.Although ETHEREUM 2.0 is currently in development and not yet fully functional, POLKADOT is already fully functional.Although the ETHEREUM brand has the distinction, reputation, and existence for a longer period of time, POLKADOT is readily available NOW.dApp developers probably won't care much about ETHEREUM 2.0 since there’s already existing POLKADOT technology.And once these developers grow accustomed to enjoying the higher interoperability of POLKADOT, it will be nearly impossible to turn them to ETHEREUM 2.0 once implemented,
The potential for POLKADOT and for the dApps that operate on its network are without limit.The POLKADOT ecosystem is superior to BITCOIN and ETHEREUM 2.0 on these basis.But this is one man's opinion and do not rely on the same as an investment endorsement, recommendation or advise of any typeIt is a great honor to take part in the organizing of . .Invest at your own risk.
I am merely an ordinary small investor who likes to share what I've learned and found interesting.I encourage you to check out my other articles.I am not in any way a financial advisor and as such, do your own research before investing.I hope you enjoyed this articleIt is a great honor to take part in the organizing of . .Please allow me to know by liking, commenting and/or tipping.Feedback is always welcome here.