Ethereum’s Rising Competition: Polkadot

If you follow the crypto space, you will know that Ethereum holds second place behind Bitcoin in terms of worth. However, you may have also noticed Polkadot creeping up the charts. Although Ethereum won’t be toppled off the second place just yet, there are always hot talks about “Ethereum Killers”. These are community-dubbed altcoins that have the power to overthrow Ethereum. Most recently, the most significant one is Polkadot, which markets itself as a blockchain for blockchains. Momentum is already building fast in the Polkadot space, and you can continue reading for the lowdown.

What is Polkadot?

Created by Ethereum co-founder Gavin Wood, Polkadot sets out to overcome the barrier of interoperability and scalability within the blockchain world. The ecosystem allows blockchains to communicate with each other both inside and outside of the network. This means that a blockchain game can exist on the Polkadot ecosystem and accept more than just DOT for payment. The system is new, and the next ten years of updates will be exciting to see - projections have DOT worth being up to $2,000 by 2030.

Polkadot Management

The governance system of Polkadot is interesting and puts complete control into the public’s hands. If you hold DOT, you are in with the chance of having your say in the democracy. Overseeing the blockchain, 13 council members run for 7-day periods. When in power, they are responsible for acting as passive stakeholders as well as proposing changes. When suggestions come through from any party, the outcome is voted on through a Polkadot coin referendum.

Key Differences Between Ethereum and Polkadot

Both Polkadot and Ethereum are attempting to accomplish similar goals - the open development of decentralized finance and applications. To do this, Ethereum uses smart contracts to allow developers to build their applications. When it comes to Polkadot, they run a Relay Chain that connects to numerous blockchains called parachains. These slots are exclusive and are won by winning auctions and staking DOT for a lease term.

Despite being new on the scene, Polkadot has already attracted some large players including Airgap and Acala. Polkadot aims to open up the blockchain to full integration. Ethereum, on the other hand, is completely concerned with the functionality of their smart contracts.

Will Polkadot Eclipse Ethereum

The Polkadot network is exciting and has led to people wondering if it will topple Ethereum off the altcoin throne. Ethereum is in the process of building Ethereum 2.0, which seeks to solve many of the same blockchain issues that Polkadot does. However, there are plenty of roadblocks and it is a long way off. Despite this, Polkadot is brand new and the community doesn’t know if it can cope with the demand. To make this prediction, more information is needed.

Ethereum has sat atop the altcoin chart for a long time. As more ecosystems come forward that can patch traditional blockchain issues, it looks likely that it will eventually get overtaken. However, we are a long way off yet.