Why 2022 could be a big year for the Polkadot eco_？

[TL;DR]
1. What is Polkadot? Overview about Polkadot's generative system.
2. Advantages and disadvantages of Polkadot.
3. Predict the Polkadot system born in 2022
4. Conclusion


After officially announcing the product, Polkadot and its ecosystem are interested and learned by many people because of the potential that it can develop in the future, most recently in 2022. As the project is new but extremely growing strongly, many people are placing more and more high expectations for the Polkadot ecosystem. So what is Polkadot and what will it bring to people in the near future? Let's find out in today's article.


What is Polkadot? Overview about Polkadot's Ecosystem
Polkadot (DOT) is known as a project with multi-Chain, heterogeneous and scalable blockchain network technology. The special ability of DOT is that it can help connect individual blockchain chains together, thereby allowing these chains to exchange data across chains and make the most of the ecosystem's resources.

To put it simply, Polkadot is like a blockchain of many blockchains. This project will make it easy for developers to build their own blockchain on the Polkadot system, similar to platforms like Ethereum or Binance Smart Chain.

The image includes important "pieces" that make up the Polkadot ecosystem. As a project with such potential, Polkadot attracts people's expectations because the applications integrated within it are both diverse and convenient, as well as grasping the psychology, investors are also developing day by day. even more powerful than the utilities that users expect. Here is a brief summary of the functions that the Polkadot ecosystem brings to users:

· Data (aggregate data)
· Oracles (Offchain Data Delivery)
· dentity
· Smart Contract
· Lending & Borrowing
· Central Bank
· Polkadot Wallet
· DEX
· Liquidity
· Bridge
· Asset management
· NFT/Gaming
· Audit
· Payment
· Yeild Farming


Advantages and disadvantages of Polkadot:
The Polkadot project (DOT coin) has outstanding advantages such as:
· This network is capable of processing multiple transactions in parallel at the same time.
· There is a high degree of specialization.
· Ability to interact and communicate with cross data chains (Multi-chain).
· You can manage your own network.
· Easily upgradeable.

Polkadot is also building for itself an Ethereum-like ecosystem spanning many areas in the DeFi industry such as Acala, Phala, Bifrost, Polkastarter, Moonbeam or even Wallet which also has many notable products such as Math Wallet, Cobo Wallet,… While Ethereum is quite mature and shows signs of slowing down, Polkadot still has a lot of room to continue to grow.

Polkadot itself is not aiming to replace or defeat Ethereum, but rather to become a complementary partner for every other blockchain platform. While in the past many names have claimed to defeat Ethereum and have all received a bitter ending. Polkadot wants to be the place where platforms come to connect and collaborate, which is evident in the Bridge feature, which bridges Ethereum itself instead of positioning itself as a competitor.

Disadvantages of Polkadot
The biggest disadvantage of the Polkadot project (DOT coin) is that the Parachain projects are new to operation, so there are still many problems that need to be fixed and improved. Polkadot's ecosystem is still gradually being completed, investors can still see the promising potential of DOT coin in the future.

Sharding is a type of partition to divide the database into smaller parts for easier management. Performing sharding replaces the need to verify transactions by all nodes on the network. Then, Sharding will receive thousands of transactions per second instead of waiting to go through a series of complicated processes.

Some investors are also apprehensive about sharing. Because in fact, this operation has the potential to cause vulnerabilities in the chain; when one node fails, the whole chain system will also be severely damaged.


Predictions about the Polkadot ecosystem in 2022

Six changes can take place in the Polkadot ecosystem:
As we all know, what makes an ecosystem an ecosystem is its complexity and systematicity. Based on the current market demand, the development direction of the Polkadot ecosystem, and the voice of the community, we have made a rough prediction of possible new changes in the Polkadot ecosystem in 2022. Opinions may not be perfect as these are the subjective studies of our researchers.

The more advanced the technology, the more complete the auction positions are

First, many people strongly believe that the technology of the Polkadot ecosystem will become more and more complete and the auction mechanism and auction participants will be more complete in the very near future.

If any ecosystem wants to emerge from multiple public chain systems, it cannot be separated from a high-quality technical architecture. Technology is the infrastructure and hard currency of the Web3. Whether it's the framework, Wasm, or the XCM consensus message format, the NFT standard RMRK and other technologies are not static and need constant iterative upgrading.

In 2022, Polkadot officials will spend more time and energy exploring blockchain technology updates and improving core technologies like the Substrate framework.

In terms of location auctions, there are currently more than 20 parachains deployed on Kusama and more will be added in the future. As the Polkadot canary network, Kusama laid the groundwork for the Polkadot ecosystem's parachain slot auction. establish.

With the first batch of projects Acala, Moonbeam, Astar, Parallel, and Clover have acquired parachain Polkadot locations to access the Polkadot ecosystem, it has brought countless financial and community resources to the Polkadot ecosystem. . With successful access to active parachains, it is also a good example for further projects to participate in Polkadot parachain position auctions.

At the same time, with the integration of Polkadot's underlying cross-chain protocol Zenlink and the Moonbeam network, the first implementation on the Polkadot network, through cross-chain liquidity sharing and DEX aggregation, the first cross-chain DEX will provide grants Polkadot more efficient DEX services, thus driving parachain slot auctions.

Cross-chain _script_s shine
Compared to the frenzy in 2020, it seems that in the past 2021, few people paid much attention to the cross-chain concept, so in the past year, cross-chain ecosystems like Polkadot and Cosmos have not received wide attention. cobble. , and even starting to have some criticism that cross-chain is a false proposition, but given the reality of ecological development, such a view is not surprising.

However, in 2022, we may see a real explosion of the cross-chain ecosystem, and, with the improvement of cross-chain bridge function, more assets will join the ecosystem. more cross-chain.

Let's take the currently visible cross-chain eco project Multichain (formerly known as Anyswap) as an example. After more than a year of development, as of the end of last year, the total TVL on Multichain has stabilized at around US$5 billion, and as a third party, the Cross-Asset Cross-chain Platform is in the leading position. on current assets cross-chain tracking.

Therefore, we can find some clues through Multichain. Cross-chain ecosystems and cross-chain demand are not as inefficient as people think. Those fast-moving projects have tasted fresh fruit.

Looking at Polkadot, we can also see the presence of Multichain, which is what Zenlink is trying to do. We have reason to believe that with the implementation of XCMP, cross-chain assets on the same level as Multichain will be born in the Polkadot ecosystem, and there will be even more room for imagination.

After all, Zenlink also has the functionality of a DEX. In addition to cross-chain assets, Zenlink takes it a step further by aggregating the liquidity of each parachain DEX across the chain, and the cross-chain scenarios will be richer.

With the improvement of cross-chain assets, we will see the introduction of cross-chain applications in the future, but we cannot predict how long it will take to transition from cross-chain assets to cross-chain applications. use a cross chain. After all, this is also a very technical “manual”, but with the improvement of the Polkadot parachain, cross-chain assets could explode well into 2022 and we are very hopeful.

New more decentralized governance
In 2014, Gavin Wood proposed the concept of Web3. In 2021, Gavin said in an exclusive interview: Web3 decentralized technology is the only hope for maintaining freedom and democracy. This proves once again that what Gavin has always emphasized is the hope that everyone can control their own identity, assets and data, and an important condition for realizing this vision is decentralization.

The architecture of the Polkadot chain makes it interoperable and parallel chains can interact with data or assets to provide cross-chain services, which also provides the basis for creating a decentralized network. .

In July 2020, Polkadot entered the governance phase. After removing the sudo permissions module, Polkadot became a permissionless network managed by collective stakeholders, i.e. a fully decentralized network managed by DOT owners.

The ultimate goal of Polkadot's complex governance mechanism is to ensure that the majority of stakeholders can always control the network. Like Polkadot's technology, the Polkadot brand must also undergo decentralized governance.

On December 15, 2021, Polkadot changed its official logo, which is the result of decentralized governance. 2097 DOT holders voted on the future of the Polkadot brand and defined the current logo and branding. Later, Polkadot became the world's first global decentralized system where DOT holders vote to define their own brand.

Although Polkadot managed to manage the entire ecosystem in a decentralized manner as much as possible, the council, as one of the three governance elements (referendum, technical committee, and council) , remains a relatively centralized center of power. For example, the council has the power to make proposals to the treasury, which can make it easier for some proposals to pass.

As a result, Gavin and team are also working on solutions to these potential problems, such as passing a referendum through a larger group vote, dissolving the council, amending the mechanism voting and other measures to maximize decentralization in governance.

It is believed that in 2022, Polkadot will form a more decentralized governance, and through such management, decentralization will be ingrained in the hearts of the people and Polkadot will also become representative. of a decentralized network.

Parachains community benefits shine
There is also an important role in the development of the Polkadot ecosystem that is easily overlooked by users - the public interest group.

Public interest parachain is a special kind of parachain that does not have its own token but uses DOT/KSM for payment. It gets a permanent parachain position in the form of a referendum. The functionality provided is usually to hold all DOT/KSM For example, Statemint on Polkadot and Statemine on Kusama are responsible for the creation and management of assets, and also support the issuance of tokens and NFTs.

Polkadot can now let go to thrive the ecosystem. When many new projects need to release assets, they can be released through public interest parachains. Some of the fees in this process are billed in DOT/KSM without the need to keep a parallel chain. chain property.

The ecological prosperity of each public chain must be inseparable from the creation of a large number of new assets and transactions. Statemint / Statemine will become one of the important usage scenarios of DOT / KSM in 2022 along with the ecological development of Polkadot and Kusama.

In addition, other public interest chains are also being born, such as the Encoiner identity system chain. Perhaps in 2022, there will also be public interest parachains supporting smart contracts. Then applications using DOT/KSM will also be launched. arrive.

Polkadot technology and Polkadot ecosystem have been widely promoted
Polkadot has now completed all the content of the 2016 white paper, the first batch of parachains has also been connected to Polkadot, and several smart contract parachains also support contract development. At this point, Polkadot technically has met the basic needs of a developer for chain development or application creation, and Polkadot can finally let go of its hands to become an ecosystem. .

For Polkadot, one of the next focuses of the work is to make Polkadot's technology more widely used. Similarly, for Polkadot ecological projects, it is also necessary to promote their technologies to develop their own ecosystem. Currently, Oneblock + has partnered with official and Moonbeam to launch the respective technical training courses, and has found a possible path.

But this year, whether an official or partial ecological project, it has reached the stage where it is necessary to strongly promote ecological technology and development. The increase in technology promotion must be seen this year.

Currently, Polkadot is working on a proposal to create an incentive scheme for the “Pioneer Award”, with an initial allocation of $18 million, to incentivize the realization of certain achievements. arduous technical achievements in the Polkadot ecosystem, such as zero-knowledge proofs, and Infrastructure development and beyond.

Polkadot ecological opportunities highlighted
Polkadot's ecosystem has taken too long to lay the groundwork in 2021. However, sharpening knives is not the same as chopping wood. Only after the foundation is polished can the ecosystem be developed better.

In particular, most of the projects in the Polkadot ecosystem are Layer 1 parachains. After successively connecting with Polkadot in 2022, the power of several parachains will be the main theme of this year, and each parachain can develop separately. In terms of ecology, it is foreseen that Polkadot's ecological development speed will far exceed that of other public chains.

For example, smart contract parachains represented by Acala, Moonbeam, and Astar can quickly introduce existing DeFi and mature DApps into the ecosystem by being EVM-compatible, attracting well-known projects to participate. join and also bring fans and influence to the Polkadot Ecosystem; it can attract more developers in the EVM ecosystem to use the Solidity language they are familiar with to execute new projects on Polkadot; it can also learn from how the public chain boomed last year and launch a public chain incentive plan, quickly Make a cold start to promote ecological development.

Another example is the distributed blockchain network application represented by Zenlink and RMRK, which can be deployed on each parachain and can open data between parachains, which can actually be considered as being deployed directly on the parachains. Polkadot From the point of view of the DEX and NFT markets, those who criticize the Polkadot relay chain for not having a smart contract must not have looked into these projects well enough.

There is development and encouragement. In addition to directly participating in it as a member of economic activities to receive dividends, the value of these projects themselves will also be significantly enhanced with the development of the system. Polkadot ecology.

After witnessing the changes that will happen after the explosion of many public chains in 2021, the return that the ecological development of Polkadot brings has actually been verified on many public chains. We've only listed one or two here. If you're interested, you might want to take a look at the dividends generated by several public chains last year when they broke out.


Conclusion
Recently, with the gradual launch of Polkadot's first parachain projects, the Polkadot ecosystem is finally taking shape, especially as the driving force behind these parachains, whether Moonbeam or Astar, seems to give we see the vitality of the Polkadot ecosystem is no longer an exaggeration of previous concepts. This is also an important step for Polkadot to carry out an ecological chain throughout.

Of course, of the many changes that we have mentioned above, some are based solely on the current situation that we have seen and some technical problems may continue to plague Polkadot, but compared to technology and business, technology will ultimately be the solution no more no less a matter of time.

The year 2022 is still full of uncertainties, but from a technology development perspective, it won't stop, because long-termists are ready to bet and "play a protracted war", After all, the bright spot of history will come, we are on the way.




Author: Tomi.D, Researcher of Gate.io
This article represents the views of the researcher only and does not constitute any investment recommendation.
Gate.io reserves all rights to this article. Reposting of articles is permitted provided that it references Gate.io. In all cases, legal action will be taken for copyright infringement.




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