Moonbeam wants to create Ethereum (ETH) on Polkadot (DOT). The latter is now considered one of the serious challengers of ETH which is having a good year, despite network congestion problems with the explosion of DeFi in the summer of 2020. The DOT token records an increase in its demand; Polkadot’s ecosystem is made up of hundreds of projects some of which are well known in DeFi.
DOT: in pursuit of Ethereum
The rise of DeFi should ensure the sustainability ofEthereum. TheEther registers an increase of 266% this year.
But seasoned investors prefer to diversify their portfolios and are interested in projects that could potentially compete Ethereum.
The project Polkadot was initiated by Gavin Wood who had participated in the creation ofEthereum. Since its listing on the exchanges in August 2020 and after the division of Polkadot per 100, the token DOWRY gained more than 44%.
A manager of the investment company KR1, Keld van Schreven, indicated that demand for the DOWRY was important.
No Vitalik Buterin bis !
The architecture of Polkadot is based on the concept of parchains – an abbreviation of “parallel blockchains” – able to process a larger number of transactions thanEthereum.
Parity Technology is the key player behind the development of Polkadot ; the company is also at the origin of Substrate, a set of tools for creating decentralized applications on the blockchain.
According to van Schreven, 230 projects are reportedly under construction on the platform, including Interlay, a project of wrapped bitcoin baptized PolkaBTC, or the cross-chain liquidity provider Equilibrium.
Stakeholders of Polkadot discourage the use of the term ” Ethereum killer And see it more as a natural progression of the overall ecosystem.
Schreven estimate that Polkadot will bring new features in terms of scalability, purpose and governance.
The governance ofEthereum is currently centered around Vitalik Buterin while Polkadot hopes to put in place more rigorous and systematized governance.
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A single blockchain cannot support the weight of DeFi. Not sure that the switch to ETH 2.0 is enough for Ethereum to be able to support the boom in the industry – DeFi experts are also pessimistic about this. Will Polkadot be an Ethereum Killer, a logical evolution of ETH, a complement to the latter? Governance would be better there without an emblematic central figure in the project. But Polkadot must above all think about securing his ecosystem from hacks. 5 DeFi hacks in a month: a crypto-hemorrhage to stop.
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