Will Polkadot be able to save decentralized finance from Ethereum‘s scalability problem? We explain the details to you!
In a report, it explores how Polkadot is tackling Ethereum scalability and web centralization simultaneously.
Specifically, Polkadot is trying to achieve scalability without lowering network security. This famous problem known as the «Blockchain Trilemma», was clarified by Vitalik Buterin himself. That is, the inevitable compromise between scalability, security and centralization in Blockchain networks.
“We will solve the scalability and consensus problems or we will die trying”.
To better understand, Ethereum has serious scalability problems, which means that its structure encounters difficulties when there is more demand than its network supports. And then it crashes because it is not able to process all the transactions that it receives.
For her part, Aya Miyaguchi, CEO of the Ethereum Foundation, stated that: “As the use of technology grows, scalability continues to be a great challenge. Scaling is easy if you don’t mind decentralization, but trying to scale without compromising decentralization, so anyone can participate, is hard work”.
It could be said that Ethereum is the center of attention of the Blockchain industry in terms of development.
Will Polkadot be able to deliver on what Ethereum promised?
In particular, Ethereum‘s consensus mechanisms force all nodes to validate all transactions. In contrast, Polkadot splits batches of new transactions into many chunks and processes them in parallel.
Blockchains that are connected to the network can have very different operating rules, transaction processing and capabilities. Which gives the whole system much more flexibility.
In contrast to the design of the Ethereum Blockchain, Polkadot has many different Blockchains, called parachains. That are connected to a main Blockchain, known as Relay Chain or Layer 0.
Likewise, Layer 0, which refers to the concept that Layer 1 protocols like Bitcoin and Ethereum could be radios. And Polkadot could be the center.
Polkadot has no smart contract
Since Polkadot Relay Chain does not have a Smart Contract, it depends on the Blockchains that connect to Polkadot to enable Smart Contracts.
An example of this would be Moonbeam, which has full compatibility with Ethereum contracts. In fact, Moonbeam developers have created a way to interact with digital currencies created in Polkadot through MetaMask.
It means that the tokens based on the Polkadot Substrate, which is a Blockchain development tool, can be sent without problems to Ethereum Wallets and Smart Contract addresses.
Polkadot scalability
Polkadot‘s improved scalability allows many projects to exceed Ethereum’s high transaction fees. And, the low number of transactions per second.
By the way, similar to Ethereum‘s decentralized data storage projects, Crust Network is building a similar solution on top of Polkadot. Basically, Crust Network is not limited by Ethereum’s scalability issues.
Finally, the Polkadot ecosystem seems to be full of projects, will they be able to solve the scalability problems of Ethereum? Leave your opinion in the comment box.
I say goodbye with this phrase from Alan Lakein: “Planning is bringing the future to the present, so that you can do something about it now“.
