Polkadot (DOT) gained popularity in the cryptocurrency market as one of the leading third-generation blockchains. Within six months of its launch, the altcoin entered the top 10 cryptocurrencies by market capitalization. However, in the bearish market
conditions, the project did not live up to its investors' expectations - the price of the DOT coin collapsed by over 90% from its previous ATH.
Before we take a look at how the project is developing, let's remember what made Polkadot so famous:
- Firstly, it's worth noting the creator's personality - Gavin Wood, one of the founders of Ethereum (ETH). Wood played an important role in the development of the main altcoin, including the development of the widely known Solidity programming language, which powers the Ethereum network.
- Secondly, Polkadot brought the concept of blockchain interoperability, or true interaction and integration between networks of different cryptocurrencies.
- Thirdly, Gavin Wood's project proposed unified security for all blockchains connecting to Polkadot. This helps protect small chains that do not have their own effective security system.
- Finally, the Polkadot architecture guarantees practically unlimited scalability.
At present, the team's efforts are focused on the scalability of parachains, inter-network interactions, integration with other ecosystems, and staking.
To delve into the team's current tasks:
Asynchronous support implementation - a significant scalability improvement that should reduce the time to form a parachain block from 12 to 6 seconds and increase block space volume. This enhancement is expected to be ready for deployment on Kusama by the end of 2022.
Parathreads launch - blockchains with usage-based payment. Parathreads can be launched and operated without waiting for the next auction. They also enable projects to smoothly transition to a full parachain when needed. Parathreads are expected to be ready for launch in Q1/Q2 2023.
XCM v3 - the third major release of the universal language for inter-network communication will be ready by the end of 2022. With the implementation of v3, parachains, and the applications deployed on them will gain additional functionality.
Governance V2 - work continues on further decentralizing the project. The new governance system should eliminate the council and technical committees, introduce the Polkadot Fellowship, ultimately leading to every decision in Polkadot being put to a community referendum.
Staking Dashboard - the project team strives to make staking as accessible as possible for end-users. Therefore, development and testing of the Staking Dashboard continue - a tool panel that allows users to research and appoint validators and review their staking income metrics.
It is evident that Polkadot is still in the early stages of its development. The developers have many significant tasks ahead, and their realization requires time. The main question is whether Polkadot has that time. After all, Ethereum is currently actively solving its scalability issues using second-layer solutions (Optimism, Arbitrum, zkSynk), giving it a significant advantage in terms of adoption. Therefore, it is more likely that in the future, Polkadot may become a supplement to Ethereum, but not surpass it.