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Polkadot Surged for 15% After Being Listed on Coinbase

  • Coinbase, the publicly listed crypto exchange, has listed PolkaDot’s native token, DOT, pushing its price up by 15%
  • PolkaDot is receiving a lot of support from institutional investors due to its B2B centered architecture.
  • The network plans to launch Parachain slot auctions this summer in the wake of Kusama’s successful launch on June 15th.

Novel blockchain architecture is pushing the boundaries of innovation in the space. Blockchains such as PolkaDot add a new angle to how ecosystems can be more efficient, enabling faster, more efficient interaction between smart contracts and validators.

PolkaDot has been on the radar for investors after successfully developing “Parachains,” a stand-alone layer one blockchain that possesses a single functionality, specialized characteristics, and governance. PolkaDot’s technological growth prompted Coinbase to list their native token, DOT, on their exchange on June 14th.

PolkaDot and the Parachain Revolution

Unlike Ethereum, which relies on “minimal governance,” PolkaDot has a “radical approach to governance.” It empowers DOT token holders through its 12 member council, thus having a dynamic effect on the entire governance model.

The transmitted success of their modular self-standing blockchains resemble isolated islands if they are unable to add value to the overall network. PolkaDot has integrated ChainLink which will provide an oracle solution, attributing accurate price feeds across Parachains. Embedding oracles will enable the future development of sought-after blockchain use cases such as DeFi and NFTs. Additionally, ChainLink will add a layer of security to off-chain – on-chain data movement.

PolkaDot has developed an infrastructure that can act as a bridge between a network such as Ethereum or Bitcoin. Such a bridge facilitates Parachains to be able to enable the permissionless and open infrastructure of Web 3.0. Bree Yin emphasized that the bridge will allow cross-chain tokens and data transfers from one blockchain to another.

Parachain architectures empower developers to create scalable, more efficient blockchains. Parachains require two chains of different capacities, thus allowing relay chains to finalize transactions, while Parachains validate transaction accuracy. PolkaDot plans on opening the initial Parachain Slot Auction this summer after Kusama concludes its auction of a place on the PolkaDot and Kusama platform, which started on June 15th. Slot allocations will work on a voting basis within the implied governance model.

On the Flipside

  • Parachains are currently not live or operational on the PolkaDot mainnet, and, as of yet, there is no clear date as to when the first auction will occur.
  • The effectiveness of the on-chain governance model has yet to be proven.
  • PolkaDot operates in a highly competitive market, competing with Ethereum, Polygon, and even Binance Smart Chain.

Future: A 100 Year Blockchain

The Parachain auction mechanics, added to the network validation process, are a novel way of attracting investors and vouching for the credibility of a project. Polka is poised to generate additional value for the Ethereum network and some consider it a catalyst for shifting the focal point of blockchain usability.

Investors are encouraged to participate in the PolkaDot ecosystem either as validators or denominators. To achieve this, stakers on the network receive financial incentives for locking a certain amount of DOT in a smart contract.

Investors have not been disregarding PolkaDot’s evolution as a technological imperative. Osprey Funds CEO, Greg King, has vouched for PolkaDot in a direct way, launching a trust for private investors. In a Business Insider interview, he highlighted the ecosystem as a “very ambitious product” due to its bridging capabilities.

PolkaDot is improving its reputation among institutional investors through ETPs. Swiss firm 21Shares AG launched its own ETP, granting clients access to DOT investments. Similarly, Valour, a Swiss digital asset firm, also issued its own ETP, giving yet more exposure to DOT and ADA. With this under consideration, both communities and investors tend to agree on one thing: PolkaDot can become even more disruptive than Ethereum.

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    This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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