Polkadot is a new multi-chain structure whose objective is to create a blockchain that securely connects other blockchains, in turn providing scalability possibilities and new functionalities. This project seeks to be the direct competitor of Ethereum, and its proposal is that of a broader, more scalable and more efficient network that solves scalability and interoperability problems in the cryptocurrency market.
This is a unique project of its kind, since for the first time in the history of cryptocurrencies, a blockchain connects different blocks, with different characteristics and functionalities, in the same great ecosystem, with a very well studied security. It is called a blockchain 3.0 project, and it aims to take power away from internet monopolies and provide greater participation to users.
Origin of Polkadot
The Polkadot network is a project spearheaded by one of the most recognized figures in the crypto world, Gavin Wood, one of the main developers of the Ethereum project. This expert is responsible for Ethereum currently having a powerful programming language, Solidity, which he created himself. However, on January 11, 2016, Wood abandons Ethereum and decides to start his own project, one that would revolutionize the crypto world.
With this in mind, Gavin Wood decided to start a project that would fill all the gaps that Ethereum leaves and that, as we mentioned, would solve the scalability and interoperability problems in the operations of different cryptocurrencies. In this way, it enabled new structures for cross-chain operation, or between chains.
By October 2016, Wood and Marek Kotewicz, another of the project’s developers, submitted the Polkadot whitepaper. Initially, Wood had the financial support of his company Parity and the Web3 Foundation , which he also helped found, with the participation of these two companies being vital for the launch of Polkadot.
However, these two companies were also dealing with the financing of Ethereum, so the resources of both companies to support the Polkadot project were limited. Due to this, in October 2017 the first Polkadot Initial Coin Offering (ICO) was carried out, managing to raise more than 140 million dollars to continue with the development of this multi-chain network that would completely change the world of cryptocurrencies.
A short time later, a Parity hack would cause the company to lose more than $ 90 million within the Ethereum network, putting Polkadot’s project at risk due to a severe decline in revenue. Still, Gavin Wood did not stop the project and reformulate the route the work would take.
After this havoc, Polkadot has grown as a unique and completely revolutionary network proposal that allows the transmission and processing of data between different blockchain networks, improving interoperability between them. Thanks to Polkadot, it is now possible to interrelate different chains in the same ecosystem, and also allows the creation of chains with their own capabilities and functionalities.