Moonbeam wants to create Ethereum (ETH) on Polkadot (DOT). The latter is today considered as one of the serious challengers of the ETH which is having a great year, despite the problems of network congestion with the explosion of the DeFi during the summer 2020. The DOT token is recording an increase in demand; the Polkadot ecosystem is made up of hundreds of projects, some of which are well known in the DeFi.
DOT: in pursuit of Ethereum
The growth of the DeFi should ensure the sustainability of Ethereum. Ether is up 266% this year. But seasoned investors prefer to diversify their portfolio and are interested in projects that could potentially compete with Ethereum.
The Polkadot project was initiated by Gavin Wood, who participated in the creation of Ethereum. Since its listing on the exchanges in August 2020 and after the division of Polkadot by 100, the DOT token has gained more than 44%.
An official of the investment company KR1, Keld van Schreven, said that the demand for DOT was high.
No Vitalik Buterin bis!
Polkadot's architecture is based on the concept of parachaines - an abbreviation of "parallel blockchains" - capable of processing a larger number of transactions than Ethereum.
Parity Technology is the key player behind the development of Polkadot; the company is also at the origin of Substrate, a set of tools for creating decentralised applications on the blockchain.
According to van Schreven, 230 projects are currently under construction on the platform, including Interlay, a Bitcoin wrapped project called PolkaBTC, and the cross-chain liquidity provider Equilibrium.
Polkadot stakeholders discourage the use of the term "Ethereum killer" and see it more as a natural progression of the global ecosystem.
Schreven believes that Polkadot will bring new functionality in terms of scalability, purpose and governance.
The governance of Ethereum is currently centred around Vitalik Buterin, while Polkadot hopes to implement a more rigorous and systematised governance.
A single blockchain cannot support the weight of the DeFi. Not sure that the switchover to ETH 2.0 is enough for Ethereum to be able to support the growth of the sector - the DeFi experts are pessimistic on this subject. Will Polkadot be an Ethereum Killer, a logical evolution of the ETH, a complement to it? Governance would be better there without a central figure emblematic of the project. But Polkadot must above all think of securing its ecosystem of hacks. 5 hacks in the DeFi in one month: a crypto-hemorrhage to be stopped.
