What is Polkadot and Why Should I Care?
A Guide for the Crypto Newbie
For those new to crypto or Polkadot, welcome! Let me tell you about Polkadot on the simplest and least technical terms I can.
As a beginner, it’s best to first think of Polkadot as a cryptocurrency asset, functioning with its own cryptocurrency called DOT. As you learn more, you will understand that Polkadot is not only a crypto asset, but a bundle of incredible technologies in one.
Here are a few reasons why I love Polkadot…
Visionary Leadership
Polkadot was conceived by Gavin Wood, one of the founders of Ethereum, which is now the second-largest cryptocurrency in the world. What that means: there are big brains and big vision behind Polkadot. Gavin Wood saw many of the issues associated with Ethereum, and went off to build something better.
Led by a big vision, Polkadot may be the most technologically innovative asset in the space on many levels. We can attribute this firstly to the Polkadot Founders’ consciousness of long time horizons: they have the very long term of the internet in mind.
Secondly, the Founders’ vision has an undercurrent of an adherence to foundational principles. Considering questions like: what underlies the internet itself? There are features of the internet that everyday users take for granted, such as the https protocol (which is why all links start with https). Polkadot wants to create something similar in the cryptocurrency realm, a protocol that everyone in the cryptocurrency space (and ultimately, the internet) relies upon. Polkadot’s technology called Substrate is a foundational layer for building blockchains.
Green + Environmentally Sound
Polkadot has been an environmentally friendly cryptocurrency long before Ethereum’s move to be so.
By way of background, Bitcoin has long used Proof of Work, an energy-intensive process to keep its network going. Ethereum recently moved away from using this technology, in order to be more green via The Merge. It now uses Proof of Stake.
In contrast to Ethereum and Bitcoin, Polkadot has always been green and energy efficient. In fact, as a globally distributed network holding the wealth of a small country, Polkadot uses only 6.6 households worth of energy. It also has the least carbon footprint of all Proof of Stake Blockchains. An incredible feat.
Revolutionary Approach to Governance
As someone with a background in politics, law and government, Polkadot’s approach to governance is not very broadly discussed and frankly, revolutionary. Polkadot can also be conceived as a DAO (Decentralised Autonomous Organisation), where DOT holders can vote in decisions about Polkadot itself.
As a DOT holder, you are a participant in pure democracy, democracy as it was initially conceived by the Ancient Greeks. At present no national jurisdiction in the world allows for such active participation in decision-making. This is particularly rare where the amount of capital involved is the equivalent to that of a small nation-state.
Another fascinating and innovative aspect is the use of adaptive quorum biasing, meaning that no strict quorum is needed for a vote. This has not been utilised anywhere in governance before, and maximises flexibility and efficiency in the voting process. This is one of numerous governance innovations utilised by Polkadot, which continues to be updated, as seen in Gov2.
Absolute Cutting Edge When it Comes to Tech
One thing that Polkadot is known for is its tech orientation. While this means that elements of Polkadot can be hard for non-tech folk to wrap their head around, it also means that Polkadot is extremely technically sound. This is incredibly important as a user (especially in light of the recent FTX scandal) as Polkadot is highly trustworthy when it comes to metrics like security and decentralisation.
Polkadot has a highly active developer community, topping that of Ethereum in Q3 2022. Investors and users alike can therefore have peace of mind that Polkadot will both continue to grow, and remain a safe and secure network in the process.
An Innovation Playground
Polkadot has a cousin network named Kusama, where developers can test new features prior to them becoming live on Polkadot. Kusama is a completely independent blockchain, and does have some differences from Polkadot. Change can happen faster and more easily, to allow for greater efficiency in testing and innovation, and it is described as “wild and fast, and great for bold experimentation and early-stage deployment”.
This allows for incredible innovation to be done in a safe and contained sandbox environment, before happening on Polkadot itself. Polkadot is therefore able to remain consistently on the innovation edge technologically, while still keeping users and the network safe. No other blockchain has achieved such a perfect balance of these two competing factors.
Anti Coin-Maximalism
If you are new to the crypto space, you might not have heard of “coin-maximalism”. The term refers to advocating for one cryptocurrency coin, token or blockchain over and above all others in the space.
The problem is, this is inherently counter to the main ethos of the cryptocurrency space: decentralisation. Decentralisation as a concept certainly doesn’t lend itself to utilising and believing in one single coin above all others.
Polkadot founder Gavin Wood is explicitly anti coin-maximalism, as is the Polkadot ecosystem itself. Polkadot does not posit itself as the be-all and end-all of blockchain. Instead, it functions with a specific use case in mind: being a “blockchain of blockchains”. In this sense, it allows other creators to use the technology Polkadot has developed to easily and quickly build blockchains of their own.
Collaboration Over Competition
Collaboration is a significant feature of Polkadot, specifically as it relates to Polkadot “Parachains”. Those who use Polkadot’s technology to create their own blockchain can elect to be what is called a “Parachain”.
The way I like to think of a Parachain is as follows: imagine Polkadot as the United States of America, and Parachains as the States existing inside the US. The Parachains are unique blockchains that have a level of independence in how they operate, but also share a common nation-state (the Polkadot ecosystem). They are free to have their own points of difference, and their own business and use-case.
Parachains participate in the Polkadot ecosystem can communicate and collaborate with each other as they need to. Not unlike how just as businesses might work together in the real world by sharing specialised expertise or data with each other.
The emphasis of collaboration in the Polkadot ecosystem means that blockchains do not need to position themselves as competing with each other, but rather, cooperating. This further lends itself to being anti coin-maximalism (all in this together, rather than one above all). It also creates an environment fostering innovation and friendly relations amongst projects within the Polkadot space.
Global Community
Polkadot has a global community lead in large part by the Polkadot Ambassadors. Like any decentralised blockchain network, it is borderless and boundaryless, with a very low barrier to participation. Polkadot’s Twitter and Discord are great places to remain up to date with developments.
Polkadot also spearheads in regionally focused initiatives, one at present being the LATAM region. Polkadot Decoded was hosted in Buenos Aires in June 2022, and the Polkadot Blockchain Academy will be hosted at the University of Buenos Aires this January 2023. This fosters opportunity in the web3 space for those in countries outside Western nations, including numerous economic opportunities.
Education Focused
Polkadot has a wealth of free educational resources available for those who are interested in learning more. As someone who is incredibly passionate about learning, I love this about Polkadot. Some fantastic resources are available on the Polkadot Youtube Channel (which I have spent a significant amount of time binge watching).
There are also two new MOOC’s available on edX: Introduction to Blockchain and Web3 and Introduction to Polkadot. Both allow you to earn a certificate, which is ideal if you are looking to broaden your understanding for career purposes. I highly recommend them both.
Finally…
There are many more reasons to love Polkadot beyond what I have covered here. I encourage you to continue your Polkadot learning journey, as it is truly a dark horse in the crypto race. With so many features to boast and a technically-sound approach to its ongoing development, I believe with the passage of time we will see Polkadot come out on top.
