Key points
· Polkadot (DOT) isn't just a "digital currency," it's a novel solution that can seamlessly move data and information across almost any network — whether blockchain-based or not.
This will become increasingly important as the adoption and utility of the Non-Fungible Token (NFT) and Metaverse grow in the coming months and years.
· DOT is known as the "Ethereum Killer" because ETH requires applications and other networks to conform to its standards, and DOT is a leading standard that can achieve this and cross-chain connectivity with other infrastructures.
· DOT rose more than 550% last year and now trades by nearly 60% from its peak – which may be worth a look for those interested in buying reliable items at discounted prices.
The media likes to cover clichéd success stories. Of course, we like to build them first, but when they get boring, boring, or a little stumbling – we dismantle them as soon as possible. It's our business.
In the cryptocurrency space, Ethereum (ETH) is one of the success stories that has caused a disproportionate number of hits, and it happens to be the second largest cryptocurrency project by market capitalization. Don't believe me? ETH is the only asset in the entire cryptocurrency world — currently made up of more than 10,000 projects — and metaphorically, it has a strike team. This group of asset killers is affectionately known as the "Ethereum killer" by the media.
Those "killers" should collectively come up with ETH because they can process more transactions per second than the Ethereum network, and the processing fee is lower than the current average Cost of Ethereum, which is about $30 per transaction. The list of common suspects most likely to eliminate ETH that the media tends to advertise is Cardano, Solana, EOS, and Polkadot.
While I don't believe Ethereum will be permanently obsolete by any competing project, individually or collectively, one of them is best-in-class and worth a look – and that's Polkadot (DOT).
What is Polkadot (DOT) and why is it called an ETH killer?
Polkadot is a versatile programming platform that provides a blockchain-based "app store" for application developers, including smart contracts. It's also a solution for transferring all kinds of data across various blockchains, and it's also a cryptocurrency — so it can serve as a store of value, a medium of exchange, and a unit of account. While I'm a fan and owner of Ethereum, I'd love to admit that dots do what ETH can do, but Polkadot's interoperability allows it to take advantage of the best advantages of every network it connects to — private, public, blockchain-based, or otherwise — including the Ethereum blockchain.
DOT solves one of the biggest blockchain challenges
One of the biggest advantages of blockchain technology is its decentralized distributed network. But the biggest weakness of this design is that all of these secure, immutable, encrypted networks operate in isolation from each other.
Polkadot uses its proprietary technology to securely and reliably connect all these data fiefdoms together, which enables all kinds of data transfers (not just crypto tokens and coins) to increase speed, utility, and revenue on any connected platform.
This interoperability solution is a game changer for developers who can start building next-generation applications that take permissioned data from private blockchains and use them on public blockchains. Currently, Ethereum can't do that yet. While Polkadot is not an "Ethereum killer," it is definitely a unique disruptor in the crypto space.
Is Polkadot worth buying now?
According to CoinMarketCap, dots are trading at $22.07 per coin at the time of writing, and DOT has a market capitalization of more than $21.8 billion, just outside the top 10 crypto projects that rank 11th in total market capitalization. Given its unique utility and technological advancements, it is reasonable to expect the price of the project to rise by 10-20 times with the mass adoption of the metacosm in the coming years.
Of course, this is just an opinion, not a financial advice, and you should always do your own research before investing a dime anywhere. That being said, Polkadot has a lot of potential as a project that will almost certainly play an important role in how the virtual world evolves and evolves online in the future. A future that could contain both DOT and ETH.