All the details about Polkadot are updated for you.
I will fix the writing details asap.
The crypto market ebbs, and flows between bitcoin, and altcoins right now the money is moving into BTC but it’s only a matter of time before market greed puts altcoins in the green now Polkadot is one of the few popular altcoins that has yet to properly pump, and this means dot’s upside move could be massive when the next crypto market rotation comes around today I’m going to give you a quick overview of Polkadot bring you up to speed on what the project has been up to, and tell you about the upcoming milestones that will take DOT to the moon.
Note: Content converted from Coin Bureau recent Polkadot video
Polkadot Recap
If you’ve never heard of Polkadot, before here’s everything you need to know Polkadot was founded in 2016 by Dr. Gavin Wood.
Gavin is one of Ethereum’s co-founders, and served as the Ethereum Foundation CTO until late 2015. Polkadot was built by parity technologies a for-profit software company based here in the uk Polkadot’s development is coordinated by the Web3 Foundation a non-profit based in switzerland the Web3 Foundation hosted the first Polkadot ico in 2017, which raised a whopping 145 million dollars in eth now over 90 million dollars of this eth was permanently locked due to a bug in the wallet smart contract to recoup these losses the Web3 Foundation hosted another Polkadot ico in 2019, which is believed to have raised another 100 million dollars Polkadot’s mainnet went live in the spring of 2020, and DOT transfers were enabled in August 2020.
Polkadot uses a novel proof of stake consensus mechanism called nominated proof of stake now nominated proof of stake is outside the scope of this video but the short version is that DOT holders nominate validators by delegating their DOT to them Polkadot validators secure the relaychain, which is Polkadot’s central blockchain now according to Gavin the relaychain can process over 1 000 transactions per second, which is not too shabby the relaychain is not smart contract compatible, and only supports DOT transactions related to DOT transfers staking governance, and parachain slot auctions parachains are blockchains that plug in to the relaychain in contrast to the relaychain parachains are smart contract compatible, and host all Polkadot’s dapps Polkadot’s relaychain is limited to 100 parachain slots, and because there are hundreds of projects building on Polkadot parachain slot auctions are used to determine, which project gets a parachain slot parachain slot auctions involve bonding DOT to the relaychain a snapshot is taken at a random time shortly before the auction period ends, and the winner gets a parachain slot DOT holders can loan their DOT to Polkadot projects participating in parachain slot auctions in exchange for their tokens now this is a new funding mechanism called a parachain loan offering or plo in contrast to an initial coin offering or ico any loaned DOT are not sold or even given to the project loaned DOT are simply bonded to the relaychain for the duration of the parachain’s lease period at the end of that lease period all bonded, and loaned DOT are returned now this only scratches the surface of how parachain slot auctions work if you want to know, which projects I think will be securing a parachain slot you can check out my video about that using the link up there it’s been about.
Polkadot Updates
Nine months since I last covered Polkadot, and a lot has happened since that time so here are a few highlights.
In January, Grayscale filed for a Polkadot Trust with the SEC unfortunately Grayscale’s Polkadot Trust has yet to materialize but another Polkadot trust managed to get approval in april this was osprey’s Polkadot trust, which is unfortunately limited to accredited investors for the time being also in april coinbase ventures announced that it was investing heavily into select projects building on Polkadot namely akala in May the Polkadot relaychain experienced an issue that almost led to a blockchain halt as far as I understand the issue was resolved before this happened in june an asian vc firm pumped 30 million dollars into Polkadot’s ecosystem, and a Polkadot etp began trading on the Swedish stock exchange Kusama also began its first round of parachain slot auctions now in case you didn’t know Kusama is an unaudited clone of Polkadot, which acts like its live test net I’ll leave a video about it in the below, if you want to learn more now Polkadot’s biggest news in june was dots listing on the coinbase exchange something, which was arguably long overdue.
In August Kusama began its second round of parachain slot auctions, and the second round will end on October the 13th in September Polkadot, and Solana etns exchange traded notes operated by Vanek began trading on the German stock market.
DOT Price Analysis
Despite all these bullish events you’d be hard pressed to find evidence of them in dot’s price action DOT is one of the only blue chip crypto currencies, which has yet to set a new all-time high the question is why, and the answer seems to be China decrypt reported back in January that Polkadot was the quote hottest cryptocurrency in China this has been the case for quite some time, and it seems the China hype began back in november when China’s bsn blockchain project added Polkadot to its itinerary as we all know China cracked down on crypto mining in mid-may, and this seems to have spooked a lot of chinese DOT holders into selling in a video to the chinese Polkadot community in July Gavin warned that cryptocurrency was on the brink of quote major regulation, and in retrospect that was a pretty prophetic statement China’s most recent crackdown on cryptocurrency transactions has made it very difficult for the average chinese crypto holder to buy or sell their coins, and tokens it’s likely a lot of them sold their DOT as a result now when you combine this with the cell pressure coming from the Web3 Foundation parity technologies Polkadot’s early investors, and dots above average inflation well what you see is what you get now the silver lining here is that DOT has held up quite well in recent dips compared with other major cryptocurrencies, and there’s also one major milestone that could easily take DOT to new all-time highs, and that is Polkadot’s own parachain slot auctions.
When Polkadot Parachains?
Gavin mentioned in an interview back in May that Polkadot’s parachain slot auctions would be taking place by the end of Q3 this was dependent on the completion of the audit of Polkadot’s parachain code, which was apparently delayed in a recent interview Gavin said that the audit would be complete in the coming days once the audit is done Polkadot developers will need to fix any issues identified by the audit, and then the Polkadot community will be able to vote to start Polkadot’s first round of parachain slot auctions however there seem to be two more conditions, which must be met before Polkadot’s parachain slot auctions can begin as I mentioned in my video about Kusama’s parachain slot auctions Polkadot developers first need to see that Kusama is stable with multiple parachains as I mentioned a few moments ago Kusama’s second round of parachain slot auctions will conclude in less than a week, and this could be the performance threshold that Polkadot developers are looking for another thing the Polkadot needs to do before parachain slot auctions can begin is introduce a special parachain called statement a statement is basically a parachain that makes it possible for Polkadot to mint fungible, and non-fungible tokens statement will be required for Polkadot projects to issue tokens to any people who loan their DOT for their parachain slot auctions according to parachains.info we should see the statement parachain go live any day now once that’s happened Polkadot devs will again need to make sure that it’s functioning smoothly before giving the green light for full-blown parachain slot auctions on Polkadot.
What To Expect From PSOs
Luckily for us Kusama’s parachain slot auctions can give us an idea of what to expect from the parachain slot auctions on Polkadot the winners of Kusama’s first round of parachain slot auctions were karura moon river sheden bifrost, and kala every single one of the projects is planning on participating in Polkadot’s parachain slot auctions as akala moonbeam astar network bifrost, and fala respectively now it’s likely that these projects will be the winners of Polkadot’s first round of parachain slot auctions, and so far the best performer in terms of price has been moonbeam’s moon river I suspect this is because moonbeam, and moonriver support solidity smart contracts leverage the Ethereum virtual machine, and are also interoperable with Ethereum I’ll quickly point out that almost all Kusama’s parachain slot auction winners were listed on KuCoin shortly afterwards, and if you don’t have a KuCoin account yet well you can check out my KuCoin tutorial in the top right I also have a cracking deal on VIP level 3 accounts there anyways more than 1.3 million KSM were bonded in the first round alone accounting for about 15 of KSM’s circulating supply this is important because all this KSM will be out of circulation for the duration of its respective parachain lease periods this reduction in supply means more volatility for KSM, and that could do wonders for its price in the future especially as more KSM is locked up in subsequent parachain slot auctions interestingly every Kusama project so far has opted to lease a parachain for the longest amount of time possible, which is slightly less than a year on Polkadot the maximum parachain lease period lasts two years, and if we see the same trend there this means any DOT you loan two Polkadot projects could be locked up until late 2023 as such be sure to check this before you participate in any parachain slot auctions on Kusama or Polkadot, and be sure to balance the rewards you stand to gain with the opportunity cost of keeping your DOT locked if you’re not sure how to do that I’ll leave a link to my post about how to research cryptocurrencies in the description.
Polkadot Roadmap
Besides parachain slot auctions Polkadot has two more milestones left on its roadmap the first is parachain interoperability as I’ve mentioned in a few of my earlier videos Polkadot has been having a hard time making parachains interoperable this is not an issue that’s unique to Polkadot either Ethereum developers are also working on how to make shards effectively interoperable in Ethereum 2.0 now Polkadot’s solution to its cross-chain communication issue is xcm, which I won’t even try to get into here I’ll leave a link to a blog post about it in the description if you’re interested xcm seems to be in its testnet phase, and should be ready to ship soon now Polkadot’s second milestone is the introduction of parathretts the Polkadot pros among you will know that power threads are essentially pay as you go parachains parathreads could open the door to institutional adoption for Polkadot, and a few of its projects have already had some traction on that end for example unique network partnered with the united nations to sell nfts to help fight climate change now after those two milestones are met the next ones will be proposed via community governance, and these proposals can be seen on the polk assembly website as you can see there isn’t all that much going on here, and this seems to be because of voter apathy put simply DOT holders aren’t bothering to table proposals or even vote as is revealed by the low voter turnouts in Polkadot’s recent referendums now this might have to do with Polkadot’s elaborate, and lengthy governance process, which requires bonding a significant amount of DOT, which risks being burned if the proposal is rejected this is probably a part of why Gavin is hoping for a remake of Polkadot’s current governance process even so Gavin’s motivation is decentralization right now all Polkadot proposals are ultimately approved or rejected by Polkadot’s technical committee, which consists of personnel from parity technologies, and the Web3 Foundation Gavin mentioned in that aforementioned video to the chinese Polkadot community that the technical committee needs to take more of an advisory role to ensure Polkadot becomes sufficiently decentralized.
Polkadot Concerns
This conveniently brings me to my current concerns about Polkadot firstly there’s the apparent disappearance of Gavin between may, and September this year evidenced by the absence of tweets during that time now this would be a silly metric were it not for the fact that when Gavin reappeared in September much of his rhetoric was focused on cryptocurrency regulations most of this banter has happened irl notably at the masari mainnet conference in late September when Gavin did multiple interviews with different news outlets, and influencers oddly enough Gavin is happy about incoming cryptocurrency regulations, and his reasoning for this is robust in short regulations will force cryptocurrencies to decentralize Gavin also highlighted the tendency towards centralization that we’re seeing with many cryptocurrency projects, and d5 protocols, and how regulations will bring cryptocurrency back to its decentralized routes the only problem here is that Polkadot might be on the hit list of regulators like the SEC due to its relative centralization, and this isn’t just speculation either recall that an unpublished securities assessment of Polkadot by the crypto ratings council gave it a score of 4.75 out of 5. now while it’s true that this assessment was made before Polkadot’s mainnet went live its score is probably not all that different today as far as the SEC is concerned although Gavin is pushing for decentralization this decentralization probably can’t happen until Polkadot has successfully rolled out its parachain slot auctions even then Polkadot centralized development team will likely be required to ship the remaining two milestones, which will complete the project in other words it might be a race against the clock for Polkadot to tie up its loose ends, and decentralize before regulators come knocking now even then we could see some issues, and Gavin’s long absence could be because Polkadot has already gotten that knock, and just hasn’t made it public yet that is complete speculation on my part but this has happened with other crypto projects such as usdc issuer circle, which only recently revealed its cooperation with the SEC that said it’s more likely that Gavin’s absence was due to his focus on Polkadot’s development, and the implosion of the chinese Polkadot community due to regulations now on that note almost all of Polkadot’s top projects are chinese, and now that the average chinese DOT holder can’t access Polkadot’s ecosystem this could be a disaster for its growth conversely we could see hundreds of thousands of new users flock to Polkadot when its parachains start plugging in, and dapps start to deploy, and DOT will pump for weeks as a result as we’ve seen with other cryptocurrencies like avalanche this is the rule rather than the exception, and it’s what I predict for Polkadot now if you didn’t understand the Avalanche reference, you’ll have to read my most recent post about it using the link below.
AVAX
Conclusion
If Polkadot has fallen off your radar in recent months well join the club while other cryptocurrencies have made massive strides in development, and adoption Polkadot has seemingly fallen by the wayside this ultimately boils down to the repeated delays of its parachain slot auctions, which should have begun months ago from where I’m standing Polkadot has already satisfied the prerequisites for this to happen, and I personally find it hard to believe that they’re being held back by an audit I think it’s much more likely that Polkadot’s developers are just waiting for the right moment to make the announcement between may, and August the crypto market wasn’t looking all that hot running parachain slot auctions during that time would not have been wise as dot’s hype card would be used up for pathetic percentage gains in September the chinese government cracked down on crypto running parachain slot auctions during that time would have been borderline insulting to all the chinese investors who had been waiting for them now we’re in october the crypto market is up Gavin is back on twitter, and although bitcoin is in the spotlight at the moment as I mentioned in the introduction that rotation into altcoins is coming when that happens it will be the perfect time for Polkadot’s parachain slot auctions, and I won’t be surprised in the slightest if that’s when the first round begins now while I am concerned about regulators running after DOT I know there are much bigger fish they need to fry first by the time they get around to it Polkadot, and all its best projects will have reached their final form, and DOT will have reached its rightful place on the cryptocurrency leaderboards top five baby if you’re as ready for parachain slot auctions as I am give that like button a slam remember to subscribe to the channel, and ping that notification bell as well if you’ve already watched every video on this channel you’ll be happy to know that I have a second one where I upload regularly coin bureau clips has all the behind the scenes content you need, and it’s where I give you an emergency update when the crypto market makes you want to scream you can also find me on twitter tiktok, and instagram where I’m still waiting to be verified nightmare process I’ll tell you now thankfully my telegram has finally got the blue check so when you join you’ll know you’re not going to get wrecked better yet you’ll get all the daily updates that will optimize your crypto bets if you’re wondering where you can go to find out what other cryptocurrencies I hold as part of my crypto portfolio.
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