Why is Polkadot Important to Blockchain?

Updated: Apr 22, 2021

With over 9,000 tokens live in the cryptocurrency marketplace, at first glance it can be overwhelming to find the best cryptocurrencies to invest in. Which token is the best one to invest in to make the most profits for 2021?

This question is asked by every investor in this space, but no matter if you are new to cryptocurrency or have been around through a few market cycles, you most likely have heard about a project with a lot of potential called Polkadot. So why are so many people excited about Polkadat? Is it all hype? Or is there some legitimacy behind the value, use case, and excitement surrounding this token.

In this article we are going to answer this question and more.

Polkadot Solves Problems for Blockchain

To first understand the value of Polkadot we must go back in time to the pre-polkadot era to really understand what problems DOT is looking to solve. It all starts with the blockchain.

The true investors in the cryptocurrency arena are not necessarily cryptocurrency investors, they are blockchain investors. They understand the macro global use case for blockchain and how it will revolutionize our world, much like how the internet has, if not even more. However, as blockchain makes it’s entrance onto the global scene, it has not done so without it’s problems, and issues.

Before 2017 we used the term “The Blockchain” to refer to Bitcoin, since Bitcoin was the first and still is the longest running blockchain in history. Now in 2021 we have many blockchains thanks to so much innovation in the cryptocurrency space. These blockchains all have different use cases, technology stacks, communities, goals and solve specific problems for specific industries. The problem with these blockchains is that they are all built on their own native chain and do not have the ability to communicate or share valuable data with each other. Although we have created many great blockchains and cryptocurrency projects, as of 2021, the information and data has on all these chains has been siloed into individual blockchains, greatly diminishing their ability to be used as intended by a large interconnected audience. Lets look at a basic example. Lets say you want to send payment on Ethereum to your neighbor but his bank only uses Binance Smart Chain. And when he goes to the store to buy groceries the supermarket only accepts tokens from Tron’s blockchain. To make things more complicated your job pays you in a currency you have never heard of because it gives them specific benefits they need. This means since cryptocurrencies cannot communicate to each other they all simultaneously become less valuable. What if there was a way where all chains could still operate as they currently are but communicate to each other’s blockchains with no problems. That would bring tremendous value to the entire global cryptocurrency market.

Introducing Polkadot (DOT)

Polkadot connects all blockchains together and runs transactions all together instead of one at a time. As of the time of this writing (4/21/21) parachains are not live yet and are currently completing the test phase of Polkadot’s testnet Rococo.

Polkadot expects to began onboarding parachains first through the Kusama Network, and then Polkadot will begin onboarding later in the year 2021. A new parachain will be added every 2 weeks through something know as a Parachain Auction until 100 parachain slots have been secured.

This means that it will take about 50 months to complete the process or 3- 5 years. As these parachains compete over parachain slots they will require a lot of Polkadot tokens to secure a slot (up to 40,000). We believe thiswill cause a massive Polkadot shortage which could send Polkadot on a parabolic bull run for quite some time. This is of great interest to PolkaSyndicate as we seek to gain the most amount of money as possible investing in the future of Polkadot and parachain auctions.

Not only will Polkadot increase in value but so will the entire crypto ecosystem, as blockchains gain the ability to communicate, pay less fees, become more secure, and many other positive features Polkadot will bring.

This is why in our humble opinion we see Polkadot as one of the most important cryptocurrencies of 2021 because it is a catalyst that will ignite the spark to turning blockchain and cryptocurrency technologies mainstream.

#Polkadot #Polkasyndicate #Blockchain

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