Public Chain Competiton: Is it DOT’s era?
Today, I’m asking myself why? Why haven’t I bought Polkadot (DOT)?
The month of October (Uptober) was an exciting time for almost all coins especially Bitcoin (BTC) and Ether (ETH) as they hit new all-time highs. Despite the fact that the price is consolidating now, traders are still wildly bullish. Just like DOT — trading now at $54.86 from $19.05 three months ago.
Traders are likely looking at the success of Parachain auctions that took place on Kusama (KSM), Polkadot’s sister network, and expecting the same on Polkadot.
Similarly, the steadily advancing Metaverse is fueling excitement within the crypto sector, as it promises to become a driving force behind development in the crypto space. It is evident that the concept of a Metaverse is also impacting the “real world,” as seen in Facebook’s recent rebranding called “Meta.”
As the public chains have made progress in scalability, privacy, and cross-chain — let us take a look at the competition today and what’s happening in the existing public chains.
Ethereum: The king of public chains
Launching Ethereum 2.0’s mainnet is a significant milestone for Ethereum. However, because Ethereum 2.0 has not yet been implemented, and sharding technology is complicated, people have turned other attention to potential public chains.
A surge in DeFi applications in 2020 has led to Ethereum network congestion, insufficient performance, and other problems becoming more visible. Therefore, infrastructure upgrades are the major priority for Ethereum.
Polkadot: The rising star
Likewise, Polkadot has made a lot of progress. Since the release of the first candidate chain Polkadot CC1 in early 2020, the Polkadot mainnet has entered a phased release state. At the end of 2020, the Polkadot parachain testnet Rococo-V1 was launched and running. This means that the Polkadot Parachain Slot auction was expected to happen. In one week’s time, the Polkadot Slot auction will begin. As a result, the value of DOT is expected to increase accordingly.
Polkadot aims to become a perfect blockchain expansion platform that does not load smart contracts or run blockchain programs on its own, but has the ability to be connected to other blockchain projects via multiple parachains. During this process, the Polkadot main chain serves as a relay chain to verify parachains and provide consensus and security.
Solana: The fast SOL
For Solana, fast is its label. Solana was designed to support 710,000 transactions per second (TPS) on a 1GB network without data partitions when it was first launched. It currently measures 65,000 TPS, which makes it the fastest public chain in the blockchain.
Today, more and more projects such as Serum, Bonfida, and Solflare are being built on Solana as its ecology improves. It is exciting to see what kind of fireworks we can expect from this public chain with its low gas fees and high TPS.
Litecoin: The closest to Bitcoin
Technically, Litecoin has a lot in common with Bitcoin. Its production and transmission are based on an open-source encryption protocol. There is no central control. With this in mind, all transactions, balances, and expenses are managed by a p2p network. Also, Litecoin has made a lot of progress in the scene.
In fact, Venezuela has included LTC as a means of payment in its popular international payment system. Its logo was even advertised on the UFC mat during a famous fight. It was a real eye-catcher. Moreover, an ATM has been installed in a new shopping center in Singapore that accepts both Bitcoin and Litecoin.
Now, Litecoin is working on the implementation of the lightning network protocol, as well as using it for smart contracts and privacy (including confidential transactions and MimbleWimble). The project is light and cheap, but most importantly in good hands with great ambitions.
Several public chains are expected to appear this year and in the coming year. There are too many Ethereum-like projects emerging on the blockchain market today, and the market is no longer satisfied. The market is looking for unique characteristics in each new public chain project.
As one of the hottest projects in the current blockchain industry, Polkadot has a very ambitious vision and is now one of the strongest competitors in the public chain infrastructure field. Parachains slot auctions are undoubtedly a major step in the development of Polkadot. Meanwhile, there is Solana and Litecoin that also proves how they can compete side to side with the biggest public chain in the crypto space.