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Know what problems of the Blockchain Industry are solved by Polkadot Network; Is it Worth Investing in 2021
Polkadot is one of those projects that gained a lot of popularity very quickly, making every investor think if it is the right choice to invest.
Polkadot is a platform whose native token is DOT that performs three main functions, and firstly it provides the governance for the network; secondly, it operates the network; and third, it bonds DOT to create parachains. Founded by Gavin Wood, Polkadot was built using a tool named substrate. Since the co-founder of ethereum created the Polkadot network, it is often compared with the ethereum and considered its alternative.
From a perspective of an investor, it always comes to mind whether Polkadot is worth investing in and what makes it comparable or even better than Ethereum. Let us try to explore it in this report. It is often compared with Ethereum, but in actual practice, it is made different from that. It is made to be what Ethereum could not be. Polkadot is a system of multiple blockchains called Relay Chain, further connected to a series of blockchains called parachains. These parachains can issue the tokens. This series of signatory technologies of Polkadot allows the communication of data across various chains that ultimately solve the problem of interoperability in the blockchain industry.
Multiple projects are building on the Polkadot network that excites the investors about its potential. Let us try to have a brief look at the projects. One of the projects which have got the investment fund on RockX is Acala. Notably, RockX is a digital asset firm that has established an investment program to support worthy projects. Talking about the Acala, it is a DeFi app built on Polkadot, and it is a parachain that can communicate with the other parachains & collaborate with them. Acala can transfer data to other networks like Ethereum, which can help users move their assets. Another critical project is KILT that focuses on delivering verifiable Internet-based identity credentials.
Polkadot is more or less a shard form of Ethereum that allows redistribution of the workload. It helps in making many blockchains interoperable along with maintaining the uniqueness of each blockchain.
With the current market cap of more than $18 billion, Polkadot is a better investment option than the newly launched coins. Although certain issues are present around the Polkadot project, just like any other crypto project, it certainly offers investors considerable potential. Since it has made its place in the top five crypto projects, it is certainly worth investing in 2021. DOT initiated the year with a bull run with a trading price of nearly $9.12, and it is expected to gain 15-25 percent gains by the mid of 2021.