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Polkadot Network: An Interoperable Decentralized Web 3.0 Blockchain

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Gurpreet Singh

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20 MIN TO READ

January 2, 2024

Polkadot Network: An Interoperable Decentralized Web 3.0 Blockchain

by

Gurpreet Singh

linkedin profile

20 MIN TO READ

January 2, 2024

Table of Contents

In this fast-changing world of technology, web 3.0 offers modern functionality by shifting the control of the Internet from giant developing organizations to individual developers. With the latest decentralized web, users have the sovereignty to write, edit, and execute the data on the Internet. 

Among the decentralized web 3.0, interoperability or cross-platform functionality is a requisite to enhance the overall excellence of the modern web solution. Polkadot is a blockchain-based interoperable web 3.0 solution that connects several blockchain environments for top-notch communication. 

Buckle up and read further to explore the interoperable nature of the Polkadot in this article. We will cover the fundamentals of the Polkadot network, its working model, and industrial applications to enhance your business operations. Let’s get into the details of the blockchain web 3.0 applications for your business without any further ado. 

What Is the Polkadot Network?

What Is the Polkadot Network

Blockchain technology has emerged as a breakthrough in the tech space, with applications that generously benefit businesses and the government sector. However, the blockchain often comes into existence as an isolated and independent ecosystem with little or no connectivity to other blockchains. It creates a problem for organizations with varying blockchain ecosystems to communicate and share information with less effort. 

Polkadot network is a blockchain-powered network with promising functionality to connect these independent blockchains for smooth file sharing and matchless security. The primary purpose is to maintain the decentralized nature of blockchain technology and secure it from central authorities to intervene in its operability. Thus, the Polkadot blockchain is an essential invention from a few impressive minds. 

To pave the path for boundless innovations, Polkadot offers an advanced decentralized network in collaboration with Web3 Foundation to cut down the limitations of blockchain technology. Web3 Foundation and Parity Technologies collectively developed the Polkadot network as a solution for an innovative and decentralized communication system for other blockchains. Here are some key personalities responsible for the development of the network: 

1. Gavin Wood

Dr. Gavin Wood is the mind behind developing advanced solutions in the blockchain ecosystem. He coined Web 3.0 in 2014 and contributed to creating the modern user-oriented blockchain-based web network. His contribution to Web3 development made him the President of Web3 Foundation, a Swiss organization. 

Furthermore, he co-founded the Ethereum blockchain, making him an essential personality in assisting the development of the Polkadot network. Nevertheless, Proof-of-Authority (PoA) consensus is among his multiple inventions in the blockchain landscape. PoA allows authorized members of a blockchain network to access and modify data on the blockchain. 

2. Robert Habermeier

Robert, the co-founder of the Polkadot network, is a key personality in developing the blockchain-based network. His extensive research in the blockchain ecosystem and keen eye for cryptography solutions made him contribute to the prominent Polkadot. 

Robert’s contribution helped to establish the Polkadot blockchain as a Decentralized Autonomous Organization (DAO) with its specialized crypto token, DOT. The token functions with an on-chain governance system. You will learn about the Polkadot Chain system in this article with details. 

3. Peter Czaban

Peter, the technology director of Web3 Foundation, plays a crucial role in the advancement of blockchain technology for enhanced and smooth communication between different blockchain networks. 

The collective efforts of these personalities alongside their teams made the Polkadot a possibility. In turn, it takes enterprises and government sector institutions to have a connected network for maximum outcomes. 

Working Model of Polkadot – A Closer Look

blockchain technology

Polkadot positions itself as a block space landscape, the amount of data stored in a single block of a massive blockchain. Blockchain works on the block model where each block stores specific data regularly, and as the data flow increases, more blocks are added to the existing blockchain network. Polkadot functions on the block space model with a few essential elements to enable interoperability between unique blockchains. 

Let’s explain those elements to understand how Polkadot promises innovative communication in blockchain technology. 

1. Relay Chain

Polkadot guarantees invincible security to its member enterprises and organizations with robust Proof-of-Stake and Proof-of-Authority consensus. To do that, the relay chain is the central element in the network that promotes the shared security of the Polkadot network. Furthermore, relay chains are responsible for the interoperability of the network. 

2. Parachains

Parachains refer to the blockchain networks or organizations with blockchain support that are part of the Polkadot. Simply put, the enterprises that use the Polkadot for specific use cases are parachains of the network. Furthermore, the network does not limit the para chains to function with Polkadot native tokens since they can have their crypto tokens without any problem. 

3. Parathreads

Pay-as-you-go is a business model that is a feasible solution for small businesses and individuals to own limited connectivity as per their needs. Parathreads refer to enterprises that function on the pay-as-you-go model, making it convenient for everyone to facilitate their business with Polkadot’s connectivity and interoperability for better business growth. 

4. Bridges

Within a Polkadot, the bridge blurs the line between para chains and para threads to communicate with other blockchain networks, including Ethereum, Bitcoin, etc. Thus, the network connects all four elements for effortless connectivity between blockchain networks. 

In addition, Polkadot services allow users to enjoy multiple transactions simultaneously since they empower a multi-parallelized transaction model. In this model, parachains process in parallel to each other simultaneously, unlike the single transaction in other networks’ methods. Thus, scalability becomes an achievable quality with Polkadot. 

Industrial Applications of Polkadot Network

Blockchain is a futuristic technology with boundless benefits. It functions independently, which limits government and enterprises from enjoying its perks to the fullest. According to Statista’s forecast, the blockchain global market will reach 1.2 trillion USD by 2030

Communication becomes a key barrier to enhancing its applications in the industrial market. Therefore, Polkadot is carefully solving the problem with its network. 

From interoperability to scalability, innovation, and security, the importance of the Polkadot is inevitable. Polkadot enables the diversity of blockchains to come under a single platform and become a part of one network for enhanced functionality. 

Here are a few applications of the Polkadot network:

1. Web3 App Development

Polkadot extends its features to Web3 app developers with its cross-platform composability, allowing users from other parachains to use your developed apps on Polkadot. With its interoperable functionality, developers can create decentralized apps (dApps) without worrying about other blockchains. 

The market example is Moonbeam, built on the Polkadot network to enable developers to create smart solutions via dApps. You can connect your dApps with other blockchains, including Ethereum and more with Moonbeam. 

2. Parachain Development

The best thing about the Polkadot is that it facilitates its users with parachain development. With your custom parachain, you can have a playground ecosystem to experiment with modern business solutions. Polkadot offers you complete freedom in terms of developing and experimenting with your developed parachain. 

Substrate is the blockchain-building technology in Polkadot that you will use to build your custom parachain. This feature gives developers flexibility and sustainability to cut off extra development costs on the user end and develop new para chains within the existing Polkadot network fees. 

3. The DOT Token of Polkadot Network

Similar to every other blockchain network, Polkadot offers its native token for trading, staking, and other platform operations. DOT is required for users to carry out core functionality on the platform. Still, Polkadot does not restrict users to DOT since they can use other tokens for fundamental functionality due to its interoperability. 

To hold DOT tokens, you must create a Polkadot wallet within the Polkadot. Afterward, you can stake, explore dApps, and enjoy other perks with DOT. Additionally, DOT offers three core functionalities to users: staking, bonding, and governance. 

DOT holders can get rewards after holding DOT for a set amount of time via staking. They can also participate in the Polkadot governance system with DOT to manage Polkadot events. Furthermore, DOT tokens help the Polkadot blockchain to add or remove new parachains onto the network via DOT bonding. 

Importance of Polkadot

Importance of Polkadot

Polkadot network provides businesses with effective and efficient solutions to help them achieve high performance within a single platform. It connects enterprises’ blockchains, enabling them to enjoy the varying functionality of different services without spending extra money and time. 

Here are a few industry-standard benefits of the Polkadot for businesses. 

1. On-Chain Governance System

Governance system refers to the decision-making mechanism of a blockchain network. The governance system of a blockchain protocol decides the efficiency and excellence of a blockchain. Polkadot uses transparent on-chain governance, implying that the relay chain of the network is responsible for the governance of the network. 

It is transparent so that every network member can assess the method for dispute resolution and the network’s upgrade. For general governance, Polkadot employs its native token, DOT, to carry out the governance. At the same time, parachains or member blockchains have the freedom to use their own crypto token for an efficient problem-solving environment. 

Furthermore, the Polkadot network is an open-source model, calling individual organizations to fund the community with its on-chain treasury. Polkadot’s transparent and secure decentralized project funding function is a next-level step for Web3 innovation. 

2. Matchless Security Model

Polkadot has a unique approach to securing and safeguarding its users from cyberattacks. With an aggregated and security-for-all approach to the network, every member blockchain of the network enjoys powerful network security from the first day. It enables every para chain and para thread to contribute to the formation of a community within the network to fight against cyber threats. 

In the Polkadot network, every blockchain can combine its security with another blockchain for enhanced safety and privacy within the network. Nevertheless, Polkadot’s consensus model is another factor that keeps the network from threats and attacks. 

3. Cross-Consensus Communication

Communication is vital for enterprises and government organizations to achieve their objectives. Polkadot offers connectivity and communication solutions to streamline their business operation. However, a standard language will pave the path for effortless achievement of the objective. 

Polkadot network has a native tongue, XCM, allowing parachains and parathreats to communicate with other parachains and external blockchain networks through bridges. XCM guarantees blockchain to leverage its benefits with interoperability. 

With the cross-consensus communication model of Polkadot, parachains can unlock arbitrary messaging, cross-chain crypto and NFT transferring, multi-chain smart contracts, dApps, and so on. Therefore, XCM extends the possibilities with Polkadot beyond imagination, offering beneficial communication to the blockchain networks. 

4. Proof-of-Stake Consensus Model

PoS is a next-generation consensus model within a blockchain network that facilitates network members to authorize access to the data. Polkadot employs an advanced and modified edition of the PoS consensus model called Nominated Proof-of-Stake (NPoS). With even distribution of the authorization among para chains, NPoS promotes a harmonized ecosystem among blockchains regardless of their native tokens. 

In addition, NPoS allows every DOT stakeholder within the network to participate equally in the staking and pooling of DOT. Thus, regardless of the amount they own, any DOT holder can benefit from Polkadot rewards, thanks to the NPoS consensus model. 

5. Eco-Friendly Blockchain Protocol

Blockchain is an advanced technology with several economic and operational advantages to businesses and individuals. But, it also threatens the environment with massive energy consumption and higher carbon footprints. 

Bitcoin is a blockchain-based entity that consumes more energy than small nations such as Malaysia and Sweden. According to the Cambridge Center for Alternative Finance (CCAF) report, Bitcoin consumed 116.82 terawatt hours in 2023, adversely affecting the environment and lives. 

Given the odds of blockchain technology, Polkadot improves its operation with its NPoS consensus model for eco-friendly operation. It consumes less energy and makes lower carbon footprints. Therefore, using the Polkadot network is an excellent decision as it offers high performance with green environment protocol. 

Conclusion

Connectivity between blockchains is a serious problem that limits them from reaching their full potential. In this regard, the Polkadot network offers extensive innovation with its top-notch network communication and file-sharing facilitation, promoting multi-chain technology that is scalable and flexible. Therefore, every business and government organization must get themselves on the Polkadot for lucrative benefits. 

If you have decided to get your hands on advanced Web3 solutions, we at Debut Infotech, a blockchain development company can help you do that with our expertise. From smart contract development to blockchain integration and dApp development, we have a vetted team for doing it with precision. Therefore, place a quick consultation call effortlessly to get a clear roadmap of proven technology for your enterprise. 

We also offer relevant and anticipated updates about blockchain, web3, and other advanced technology in the context of your business needs. Don’t forget to explore other blog posts to have a robust grip on essential information. 

Polkadot Network FAQs

Q. How do businesses need Polkadot?

A. Polkadot ensures a robust and swift innovation in blockchain technology. Businesses can get dApps and smart contracts and connect enterprise blockchains on Polkadot on the go. 

Q. How many parachains can Polkadot connect?

A. With hundreds and thousands of blockchains, Polkadot poses no limits on the number of blockchains to connect. Therefore, it is the best solution for enhancing communication and connectedness in a blockchain network. 

Q. How are parachain and blockchain different?

A. Parachain refers to a blockchain that is on the Polkadot network. Every parachain is a blockchain, but every blockchain is not a parachain. 

Q. How to add the Polkadot network to MetaMask?

A. Since MetaMask is an Ethereum-powered wallet, adding DOT to MetaMask is not applicable. MetaMask supports the Ethereum blockchain, so adding Polkadot becomes an impossible task. Therefore, you can use the Polkadot wallet for storing DOT. 

Q. Can Polkadot develop blockchain?

A. With its Substrate technology, Polkadot users can enjoy experimenting with blockchain or parachain development. You can also create dApps and other web3 applications with the Polkadot network. 

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July 9, 2024

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