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THE RISING ECOSYSTEM ENABLING THE CREATION OF PARACHAINS
Polkadot is a decentralized, multi-chain network that connects various specialized blockchains into one unified ecosystem, facilitating interoperability, scalability, and security.
WHY WE INVESTED IN POLKADOT
Polkadot’s advanced architecture solves critical blockchain challenges, such as cross-chain interoperability and scalable transactions. Its unique parachains and parathreads system not only enables efficient parallel processing and flexible participation, but also fosters a mature ecosystem with a variety of applications. As Polkadot moves towards Polkadot 2.0 with its gradual rollout started in May 2024, its potential to further expand its ecosystem is exciting.
WHAT DISTINGUISHED POLKADOT FROM OTHER ECOSYSTEMS
Polkadot’s parachains are specialized blockchains that run in parallel, connected to the central relay chain. They enable high throughput by allowing transactions to be processed simultaneously across multiple chains. Projects can secure a parachain slot through auctions or community crowdloans, gaining access to the full functionality of the Polkadot network. Parathreads, in contrast, offer a flexible, pay-as-you-go model for projects that don’t need continuous access to a dedicated slot, making Polkadot adaptable for various use cases. As of August 2024, The Polkadot ecosystem, with 50 parachains, saw 7 million unique user accounts and 39 million transactions in Q2 alone. Over the past year, active accounts grew by 35.29% and transactions by 55.85%.
The evolution of Polkadot ecosystem. Source: Messari
Number of active addresses in Polkadot. Source: Messari
Polkadot's bridges facilitate cross-chain interoperability, allowing data and assets to move freely between the Polkadot ecosystem and external blockchains such as Ethereum or Bitcoin. Bridges act as specialized parachains that ensure secure, two-way communication between different blockchain networks, thus enhancing the versatility of decentralized applications (dApps). This technology paves the way for multi-chain ecosystems, where distinct blockchains can work together seamlessly.
Polkadot introduces coretime, a new dynamic allocation system that adjusts computational resources based on network demands to boost cost-effectiveness. By processing blocks through 50 parallel cores, Polkadot enhances scalability and can handle over 1 million transactions per second using sharding and asynchronous backing. This enables developers to run applications with varying computational needs while minimizing costs and enhancing network efficiency.
Polkadot’s governance model is decentralized and inclusive, allowing all DOT holders to participate in decision-making processes, from protocol upgrades to treasury management. With OpenGov, the governance process is further democratized, making Polkadot one of the most adaptable blockchains for community-driven evolution. The network's governance ensures that changes can be implemented smoothly without contentious forks, giving Polkadot an edge in maintaining continuous development and innovation.
Key team members:
- Dr. Gavin Wood – Founder
The Co-Founder and CTO of Ethereum, founder of Kusama. He is one of the figures that come to one’s mind when speaking of the whole Web3 space.
- Robert Habermeier – Founder
Veteran engineer at Parity, he implemented Substrate, the underlying framework of Polkadot.
We have been backing Polkadot since its early stage, with some of our team members working previously at Polkadot. The future of Polkadot and its upcoming 2.0 version always excites us. For more information, please visit Polkadot website.
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