The decentralized finance space has gone extremely popular over the past few years and it now seems that the future is with Polkadot out of all DeFi coins and platforms but let’s find out why in our latest altcoin news today.
As it now looks, the vast majority of Defi applications are built on the ETH blockchain because of its popularity among the dapp developers and pre-existing user base. The sudden growth has pushed Ethereum to its limits which ended up in transaction delays and expensive fees which made the ETH DeFi platforms unusable for some users. Now, many developers are choosing to build their DeFi applications on Polkadot and want to take advantage of the unique properties and to start offering experiences that were not possible yet on other blockchains.
As an interoperable blockchain platform that can bridge together the diverse blockchains, Polkadot proves itself to be a promising solution to a range of challenges that developers face. Despite launching the mainnet in 2020, Polkadot made some strong uptakes among investors and developers. As a result, it exploded in the top five cryptocurrencies by market cap and achieved a peak market cap of $17 billion, surpassing XRP of the 4th biggest crypto position. Polkadot became the home of a few promising Decentralized finance apps like Clover, Seascape, and Acala.
Polkadot is built on a novel blockchain framework known as the Substrate which is seen as a simple platform thanks to the dozens of modules that architects can use for creating their solutions. Parity Labs developed Substrate and allowed developers to build on ensuring builders the chance to create their decentralized application for the rest of the DOT blockchain and even limited budgets. Substrate offers plenty of features that make the platform perfect for building DeFi solutions like: speed, interoperability, and scalability.
Polkadot has a block time of six seconds and most transactions are considered final in less than a minute. This makes it perfect for building applications where speed is critical such as decentralized exchanges. It can also handle more than 1000 transactions per second compared to Ethereum’s 25 tps in ideal conditions. Gavin Wood, the founder of the platform said this could reach up to 1 million tps soon. Arguably, DOT’s biggest advantage is its interoperability which means applications built on it, can interact with the ones on other blockchains such as ETH.
All things combined, clearly show that the future is with Polkadot.
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