How is Polkadot different from Bitcoin and Ethereum?
How is Polkadot different from Bitcoin and Ethereum? What are its Advantages
We are living in a technically advanced time. Here, work is mainly done by machines. Every single day new applications hit the market with their excellent efficiency. The machines are way more advanced than before. Now people want everything which is perfectly connected with technology. The finance system also needs the advancement of technology at present. Our currencies are now becoming digital currency.
Cryptocurrency or digital currency is the new financial coin. The use of cryptocurrency is growing exponentially over time. Bitcoin is the oldest crypto in the digital market. And it has grown expectedly for the last 5 years. Bitcoin professional is also considered a great profession at present. Certified bitcoin experts and cryptocurrency experts both expect that the growth of crypto has just begun. There is more to come.
More About Cryptocurrencies In General:
Cryptocurrency is a binary data collection based on blockchain technology. The main work of crypto is to use it as the medium of financial exchange. It stores the ownership in the ledger, a computerized database using cryptography. Furthermore, crypto’s main advantage is that it offers transparent, secure, fast, and easy payment methods. Since the release of Bitcoin in the market, many more crypto has also hit the market. Furthermore, some of them are the topmost gainers, and some of them are not that popular. However, Polkadot comes in the primary segment and is one of the most popular crypto assets.
What Is Polkadot?
Gravin Wood founded Polkadot in the year 2016. He is also the co-founder and CTO of the Ethereum crypto coin. The architecture of Polkadot is a shared heterogeneous multi-chain. The architecture enables users as well as external networks to use parachains for making any communication. It creates an interconnected network of Blockchains. The network of Polkadot is also eco-friendly.
Furthermore, Polkadot has some characteristics and better working functionality. It has some unique features and these good features are what made Polkadot famous in such a short time. However, at present, Polkadot is the 8th top crypto in the digital market. It further dominates 1.67 percent of the total crypto market, and the current market capitalization of Polkadot is $40,526,752,996.34. Furthermore, the current price of DOT is 41.92 dollars, and many cryptocurrency experts believe Polkadot has a higher potential and can reach 1000 dollars somewhere between the year 2025 to 2030. Furthermore, Polkadot is already popular in the trading market and offers excellent and high returns to investors.
How Is Polkadot Different From Bitcoin And Ethereum?
Polkadot is unique crypto in the digital market. The special feature of Polkadot makes it different from Bitcoin and Ethereum. Here we briefly discuss the differences between Polkadot with Bitcoin and Ethereum. Polkadot is relatively new to both Bitcoin and Ethereum. Where Bitcoin is the top crypto, Ethereum stands in the second spot, and Polkadot stands in the 8th. But Polkadot entered the top ten crypto-list in a brief period. Slowly but steadily, the interest of developers in Bitcoin and Ethereum is now declining, and the appeal of developers in Polkadot is rapidly increasing. The monthly active developer’s number in the Polkadot platform rises by more than 40 percent. There are some more vital differences between Ethereum and Bitcoin. Following are the differences.
Main Difference Between Polkadot & Bitcoin
- Cryptocurrencies are not unlimited. For Bitcoin, the number is 21 million. 21 million Bitcoin can be practically mined in total. Polkadot has a maximum supply of 10 million. Polkadot cannot mine. It has the ultimate supply, and no one can mine or create more Polkadot.
- Bitcoin runs on a proof of work algorithm. Polkadot works on the nominated proof of stake algorithm.
- Bitcoin is the oldest crypto coin. 18.78 million Bitcoin have already been mined so far. It already gives it the best return. Now the growth rate of Bitcoin is decreasing. For the past 7 days, Bitcoin has declined by over 10 percent. At the same time, Polkadot rose over 12 percent in the last 7 days. The market capital of Bitcoin rose by 2.5 percent on the previous day. At the same time, the market capitalization of Polkadot rose by 5 percent the previous day. So Polkadot is more profitable than Bitcoin as of the present time.
- Polkadot can join different blockchain platforms and work parallel on them. Bitcoin can only work on its blockchain platform.
- Bitcoin is more popular than Polkadot and universally accepted.
Main Difference Between Polkadot & Ethereum:
Ethereum is extremely popular and may become the top crypto shortly. Ethereum certifications are also in the great boom. People are now totally into Ethereum. But there is a high possibility that Polkadot can be the main competitor of Ethereum in the future. Polkadot has some advantages over Ethereum. Ethereum and Polkadot have significant differences between them. These are,
- Ethereum is a single chain architectural platform. Polkadot is a multi-chain platform.
- The backend development program of Ethereum is Solidity and Vyper. The backend development of Polkadot is Rust and Substrate framework.
- Smart contracts in the Ethereum platform can only call each other synchronously. In the Polkadot platform, smart contracts can call each other synchronously or asynchronously.
- The governance of Ethereum is off-chain. Polkadot has on-chain administration.
What Are The Advantages Of Polkadot?
Though all the crypto is based on the same blockchain technology. But all the cryptos in the market are significantly different from each other. Every crypto has some unique advantages over all the other crypto. Polkadot also has some unique advantages over all the other crypto. The fantastic benefits of Polkadot are the main reason behind the high growth rate of this crypto. The advantages are,
It is probably the best advantage of Polkadot, which makes it unique from all others. The blockchain-based platform is more than just a digital currency. It has the advantage of connecting other blockchain or networks with the blockchain platform of Polkadot. In other words, Polkadot is a base blockchain that allows other blockchains to deploy and work together. It can enable any private blockchain or permissionless blockchain. Oracle platform, smart contracts, and bridges can also work together in this platform. Polkadot achieves heterogeneity by using the relay chain and part chain technology. The relay chain is the hub that enables the blockchain platform of Polkadot to connect with other blockchains. And all the connected blockchains platforms or networks are the para chain. For example, a privacy-based blockchain in one para chain slot works parallel with the DeFi-based blockchain in the Polkadot platform.
The single blockchain platform can only work on a single platform. But as Polkadot can work with multiple blockchain platforms simultaneously, the scalability is high. Polkadot can process so many transactions on several blockchain platforms in parallel processing. The parallel processing of transactions dramatically improves scalability. And this advantage is also one of the main reasons behind the possibility of high future growth of Polkadot.
Polkadot uses a proof of stake algorithm. It enables users to nominate a person to validate the transaction on their behalf of them and also can earn rewards. This allows the platform to use shared security. The shared security means all the staked DOTs of the system will have to essentially back all the other projects. And as all the tasks which use the Polkadot platform can pool resources from others, the cost of security reduces drastically. The shared security helps save costs.
This is one of the unique advantages of Polkadot. In earlier times, blockchain was not that much concerned about the need for easy governance. Polkadot is the first blockchain that includes the easy means of governance process in the system. All the DOT holders can vote on the polkadot.js dashboard for electing council members, referenda, and upgrade proposals. Community governance is essential for better performance. And this unique advantage of Polkadot creates a high possibility of having more great benefits on this platform.
It is another excellent advantage of Polkadot. It can effectively upgrade the network without using any fork. The upgrade works on the meta protocol based on the result. For a positive outcome, meta protocol will change the protocol of Polkadot based on the mark. And for a negative effect, no change will take place. No one needs to initiate the upgrade process. The proposal is already written in the meta protocol language. For non-technical users, this advantage offers them great relief.
The digital world changes extremely fast. It depends on the possibility. For now, Polkadot has a great opportunity over other cryptos. Certified bitcoin experts or bitcoin professionals agree with the declining popularity of Bitcoin. And they also agree with the increased demand for Polkadot. Cryptocurrency experts expect that Polkadot has more potential and more development needs. But as of now, Polkadot is great for investing and earning high profits.