Polkadot is a heterogeneous multi-chain or crosschain-based technology that allows different blockchain networks to interact with each other with greater security and performance. Its aim is to reshape the structure of the existing Internet and move to what is already called the Web3: a completely decentralized Internet network.
Polkadot founded by Gavin Wood member of the Ethereum Foundation, is the creator of the Foundation called Web3 which works together with Parity Technologies in building its network Polkadot.Polkadot is a system that supports interoperability between networks of very different properties, including blockchain networks with authority testing algorithm (PoA) suitable for internal enterprise networks.
A bank, for example, could verify a transaction on its private network that ran on Polkadot and then publish it on the Ethereum network. Or, for example, insurance companies could through the public networks assess the damage that a certain weather event has caused and pay their share with an insurance policy token.
Polkadot also allows to have multiple public channels interacting and taking advantage of the functionality of each one. The structure of the Polkadot network is formed by parachains, parallel and customizable blockchain networks that form the Polkadot network. Each one of them can have its own architecture, so that it can be better adapted to other networks.
In addition you can control its own governance dynamics for example with Gossamer which is an implementation of Polkadot for building blockchains. Similar to how web frames, such as Angular or React, help developers create web applications, Gossamer helps developers build blockchains over the Polkadot network.
Building parachain networks on the Polkadot network is based on Parity Substrate technology. Any blockchain built with Substrate will be natively compatible with Polkadot, so when the main Polkadot network is operational, it will be able to connect as a parachain. Parachains provide scalability by allowing parallel transactions, i.e. they can be distributed among different blockchains.
These blockchains are connected and secured by the relay chain. The relay chain serves as a connection between the different parachains that make up the Polkadot network. In addition, the technology created by Polkadot must provide security and transmit the information between crossed blockchain networks either in the form of transactions or any other data.
In fact one of the key features of Polkadot is to allow its isolated parachains to send messages to each other with guarantees and in a safe and untrustworthy manner. Polkadot defines the term message in the same way as transaction. Both refer to data coming from outside the receiving network, and both involve and require the network to act on the data according to internal logic. This is called Cross-Chain Message Passing (XCMP).
If we look at the networks that we will be able to access and that are already running as Polkadot’s parachains, it is simply amazing.
a) Chainlink, a platform of decentralized oracles
b) Darwinia, cross asset chains and FT markets
c) Laminar, decentralized financing platform
d) ChainX, a platform connecting the Bitcoin and Ethereum networks
e) Digix, gold tokenization platform
f) Dock, decentralized identity and credentials platform
g) Centrifuge, operating system for the financial asset supply chain
h) Ocean Protocol, artificial intelligence for working with data in decentralized networks
i) Energy Web Foundation, decentralized electricity network
j) Iexec, BaaS (blockchain as a service) platform for operating applications in a decentralised cloud
k) pLibra, platform created with Phala Network to preserve privacy in future transactions of the Libra network on Facebook
l) Robonomics, RaaS platform (robot as a service) to operate through IOT with smart contracts in smart cities
m) Acala Network, a platform for the creation of stable currencies
n) Ladder Network, platform for exchange of tokenized activities between different blockchain networks
o) Katal Chain, a platform for decentralised financial contracts
p) Akropolis, platform for tokenization of pensions, savings and credit cooperatives and unsecured loans
q) Asure Network, a blocking infrastructure for future social security systems
r) Kilt, decentralized identity and credentialing platforms
s) 0x, decentralized exchange
t) Plasma, blockchain network technologies allowing the addition of plasma to all networks created with Parity Substratum
u) SpeckleOS, decentralized Web3 identities
v) Etc, etc
Not to mention the extensive wallet infrastructure, technologies and implementations that will be part of the Polkadot network.
Polkadot will be launched sometime this year with a phased deployment of the various functions, including governance, parachains and XCMP. In Crypto Theses for 2020, Messari’s Ryan Selkis ventured that “Ethereum will face legitimate competition for a smart contract platform during its transition, and the first most credible favorites to attract defectors are probably Cosmos and Polkadot.
It’s not just the DOT token holders who will be preparing for the Polkadot launch. While Polkadot does not seek to replace Ethereum, the networks will be interconnected, the success of the former will inevitably attract market share and support from the latter.
Will the network effects of Ethereum be too great to overcome, or will Polkadot’s superior technology and equipment prevail?
Perhaps soon Ethereum will find his enemy harder so far when he starts the Polkadot network.