For most free digital asset investors, the Ethereum 2.0 update promises to be a game-changing event that will improve efficiency, reduce network costs and propel the entire blockchain and cryptographic space closer to Web3 reality.
Ethereum has struggled with a lack of flexibility and sky-high gas charges, and since it serves as the largest smart contract and DApp development platform, the move to more reliable and scalable object-oriented (PoS) blockchain will be a welcome respite. .
Unbeknownst to most casual investors, however, Polkadot’s Substrate platform has been gaining ground in the development of parallel distributed infrastructure, which many believe will eventually obscure Ethereum.
Connected: Polkadot architecture and presentation of substrate infrastructure
Ever since the publication of the Polkadot White Paper, its value as a bridge between the Ethereum ecosystem and the many possibilities that make up the Web3 Internet experience has been at the forefront of Polkadot’s main sales outlets.
So, how exactly does Polkadot compare to Ethereum? What is Ethereum’s current progress towards decentralized internet, and have Polkadot pair chains become a viable threat to the dominant smart contract network? Here’s a quick overview of the technical details that separate the Polkadot ecosystem from the upcoming Ethereum update.
Two ways to distribute internet
To understand the value that Polkadot brings to the table, we must first compare Polkadot’s Substrate and how it differs from what Ethereum offers.
There is no denying that at one point Ethereum was considered a revolutionary technology and a sought after platform for DApp development. Over the years, however, flexibility has become Ethereum’s Achilles heel. With an estimated 1 million trades per day, the Ethereum blockchain is only capable of processing 15 trades per second (TPS), resulting in volatile gas charges. Although this number will increase with the upgrade to Ethereum 2.0, it will still be far below traditional centralized infrastructure such as Visa, which can theoretically work well above 1,700 TPS.
To add to its slow and congested network, the old-fashioned harmonized algorithm Ethereum consumes up to 112.15 TWh per year, which is comparable to the energy consumption of Portugal or the Netherlands. Simply put, Ethereum relies heavily on a proof-of-work (PoW) algorithm that requires computationally intensive mining to add new blocks to the chain and confirm transactions.
Connected: Inside the mind of blockchain developers: Proof of work blockchain consensus
Ethereum 2.0 intends to address these concerns by moving from a PoW algorithm to a more efficient PoS algorithm, which will ultimately enable Ethereum to become carbon neutral and accelerate.
Ethereum 2.0 will also use sharding as a flexibility solution that will see the network broken into smaller parts that can do business in parallel. Theoretically, this will allow Ethereum to process an infinite number of transactions per second, but in practice it will be limited by the number of fractions created.
To date, Ethereum 2.0 is still under development, even though the test network is live. Frustrated by the delays, ambitious project makers such as Gavin Wood, founder of Ethereum, left Ethereum to build the Web3 Foundation and Parity Technologies. Parity Technologies and the Web3 Foundation focus primarily on developing three core technologies: Parity Ethereum (also known as Serenity), Parity Substrate and Polkadot.
Finally, the goal of these institutions and projects is to accelerate the Web3 vision.
Their victories and defeats
As a core blockchain infrastructure company, Parity Technologies offers several tools and software that enable developers to launch their blockchains quickly and easily. The Parity Substrate is a toolkit for building custom blockchains from scratch and it powers some of the most popular blockchains in the world, such as Polkadot, Kraken and Chainlink.
Parity Ethereum, on the other hand, is the software that runs Ethereum 2.0 clients such as Geth and Prysm. Parity’s main contribution to Polkadot is the Substrate frame, which is used to build custom blockchains or parachutes on top of the Polkadot Relay Chain.
Connected: How Parchain Polkadot Auctions Make Distributed Web3 Possible
Compared to Ethereum’s current system as well as its upcoming sharding framework, Substrate is highly modular and allows you to build custom blockchains. Designers can pick and choose the features they want for their parachutes up to how much technical difficulty they can handle.
Here are some examples of how blockchain-based blockchain features may differ:
- Zeitgeist has a forecast market (similar to a sports bet or a bet on how the weather will be next week) and uses them for chain management.
- KILT is a very complex system for distributed identification (DID) with the aim of establishing identification on Web3.
- Subsocial consists of two communication sub-block chains with social interactions built into the code (palette for creating posts, another color palette for comments, another color palette for feedback, etc.).
As a result, Substrate allows users to put together several palettes and launch their chains in less than an hour, which is much easier than starting from scratch. In the future, they could be much better than Ethereum at completing certain tasks. Furthermore, they can still communicate easily using XCMP, a cross-platform messaging format developed for Polkadot that enables communication between networks that share the same message chain.
Substrate also provides developers with a library of modules that can be used to create compatibility between new blockchains and older chains such as Bitcoin and Ethereum. What’s more, you do not even have to create blockchains related to Polkadot while using Substrate. Simply put, any developer can use Substrate to create forkless blocks that can upgrade without the need for hard forks and on any ecosystem other than Polkadot or Ethereum.
In terms of certifiers, Polkadot Nash uses a balance card that encourages certifiers to behave in a way that is best for the network as a whole. This is in contrast to Ethereum’s current focus on rewarding miners for their efforts, which often leads to centralization and high barriers to entry.
The Polkadot Relay Chain is also designed to be much more scalable than Ethereum, with the capacity to process around 1,000 entries per second compared to the small 15 Ethereum.
Perhaps the only flaw in Polkadot’s armor is the fact that Parity Technologies had a major security breach in its multi-sig wallet software in 2017, when more than $ 30 million worth of ETH was stolen from several multi-sig wallets.
Not collisions, but fillings
After all, Polkadot is an addition to Ethereum, as both blockchain ecosystems strive to achieve the same goal of delivering a fully distributed World Wide Web.
Although Polkadot boasts a wealth of features and improved performance, it is still in its infancy, with only a handful of applications (Moonbeam and Moonriver) running on its network. At the same time, Ethereum continues to be a jackpot in all business, with hundreds of thousands of developers and projects, giving it a significant advantage in terms of recording.
Both Polkadot and Ethereum serve different purposes and can be parallel and complement each other in the scattered future.
Insight into the future
Polkadot and Ethereum have their own strengths and weaknesses. From now on, they could even be parallel to deliver fully distributed Web3. Designers could use Substrate to create distributed social media or image-sharing applications that integrate the Ethereum ERC-20 display economy. As more developers come on board to help speed up the transition to Web3 internet, there is no telling what the future holds for both Polkadot and Ethereum.
This article does not include investment advice or advice. Every investment and trading business involves risk and readers should do their own research when making a decision.
The views, thoughts and opinions expressed herein are the sole responsibility of the authors and do not necessarily reflect or represent the views and opinions of the Cointelegraph.
Oleh Mell is a developer of Subsocial, a community network built to support the community network of the future. These apps will have built-in revenue-generating methods and censorship resistance, where users will have their content and social graphs. Built with backing panels, Subsocial is unique in the Dotsama ecosystem and designed specifically for social interaction. These interactions do not have to be specifically social networks as Subsocial can support apps like YouTube, Shopify or even Airbnb.
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