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Analysts note a drop in trading volume of Polkadot

Polkadot price

Polkadot (PDT) is a new blockchain project with some interesting features that are being developed in partnership with Parity Technologies and other developers such as Ethereum founder Vitalik Buterin. The Polkadot technology was accepted into the Ethereum foundation’s innovation contest and won, which granted them a grant of 143,500 ETH (~$102 Million at current prices). They have also been able to raise over $200 million USD in venture capital from significant companies such as Pantera Capital and Polychain Capital.

How do these companies contribute to the growth of Polkadot?

The features of Polkadot are actually in the BFT consensus algorithm that is integrated as part of their platform, which means that once you verify all the blocks on the blockchain, they will be included in Polkadot’s blockchain. The idea is to have multiple blockchains that can communicate together through validation but with very little friction. Their public testnet is scheduled to launch in early 2018 and may even include a few features such as user deposits and withdrawals, signaling transactions and linking previous versions of their network.

What are some advantages to this solution?

Since they are built on top of Ethereum, it means they can use its programming language Solidity for writing smart contracts. They are planning on having a Turing-complete programming language that can be used to write all the applications.

Because the blockchain will be able to have multiple versions of itself, it means you can have private versions and public versions. You could even have a private version for yourself to use for communication and keeping a record of some data that only people who are part of your private network would be able to see. You could also have public versions that anyone with an internet connection could download, read and verify the chain’s history. This can be used as a backup solution if the public blockchain is somehow corrupted.

What are their policies to Upgrade themselves?

They are planning on having a governance model that will be used to update the protocol and even have different channels where you can have differing opinions about any decisions that need to be made. This governance model will also allow them to have automated upgrades of the protocol with varying degrees of consensus needed depending on what they upgrade, similar to how Tezos works.

What does this mean for the price of Polkadot?

The project is still in its early stages and is only starting to be developed. As their roadmap progresses, the implementation of their technology will result in the release of their main net, which will have all the features listed above. Once you are able to download and run a full node on your computer, you can start experimenting with your version of blockchains within a private network using the code they have provided. Because they are being developed in partnership with Ethereum and Parity Technologies, there is also an opportunity for them to work together on integrating Polkadot’s blockchain into Ethereum.

As far as price, the average volume on Polo is $22.46 daily and their market cap is $0.04445 (as of April 4th, 2022). The price may initially start small due to the nature of the project, but if it gains traction it will be able to reach higher prices because of its features.

So is it worth investing in Polkadot?

If you think that Polkadot is going to be able to have a good roadmap throughout 2022 and has the opportunity to be integrated into Ethereum or one of the other blockchains within its ecosystem, then it will be worth investing in this project. If the team is successful in implementing all their features and adding value to their network, then it could reach high prices.

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