SINGAPORE, Oct. 28, 2021 /PRNewswire/ — EQONEX Labs, the crypto research arm of Nasdaq-listed EQONEX Limited (Nasdaq: EQOS), today released an easily downloadable, in-depth research report, analyzing the evolution and adoption of the Polkadot protocol.
Blockchain technology has provided a multitude of opportunities to revamp the financial ecosystem and for investors to participate in a new asset class. However, the ecosystem is plagued by three main issues – a so-called ‘trilemma’ comprising: fragmentation (the lack of interoperability), governance, and scalability.
According to EQONEX CEO Richard Byworth, “Polkadot presents a strong investment opportunity given the technology was developed to address the issues inherent in blockchain. While some commentators are describing Polkadot as a challenge to Ethereum, we see it as a valuable next-generation ecosystem that has the potential to deliver enormous value, and this was our rationale for listing a Polkadot (DOT) token on the exchange and adding it to our Digivault custody offering “.
“The Polkadot project represents a paradigm shift in the world of blockchain technology by introducing a protocol which brings several game changers, including democratic governance, interoperability between multiple blockchains, and a highly modular and upgradeable blockchain development framework. Though not fully launched, Polkadot shows a tremendous amount of potential,” said Claire Zhao, Blockchain Researcher at EQONEX and one of the authors of the report.
- Polkadot is a blockchain of blockchains – A protocol which introduces mechanisms to govern blockchains in a decentralized manner. Powered by the Substrate development framework, developers are able to construct specialized, custom-built blockchains tailored to the needs of their projects.
- Blockchain Interoperability – Polkadot connects independent blockchains into one unified network, including public, private, and consortium networks. This opens the door to interoperability, which is the ability for blockchains to communicate with one another, paving the way for the creation of a truly decentralized blockchain environment, where owners of usually incompatible cryptocurrencies may communicate with one another in a trustless, secure manner.
- Decentralized Governance – The governance of a protocol alludes to the ability of users of the protocol to decide the future direction of the project. Holders of the Polkadot token on the Relay Chain can participate in a sophisticated governance process, where they can propose changes via referenda, which covers topics such as deciding on payment changes in network fees.
- Scalability – Polkadot is not fully live and does not have parachain and parathread capabilities. However, it can already support around 1,000 transactions per second, a significant improvement over Ethereum’s 13 transactions per second. Once parachains and parathreads have been implemented, it is expected that Polkadot will be able to scale to over one million transactions per second.
- Price -The circulating supply of DOT is at 987.579 million (its current total issuance is 1.12 billion) with a price of $33.3, equating to a market cap of $33 billion, which makes it the 8th most valuable asset in the cryptocurrency market (as of October 11, 2021). The DOT price has increased by over 200% since mid-July. However, it is still well below the high of $48 seen in mid-May 2021.
As parachains are not live on the Polkadot mainnet yet, adoption trends can be observed from usage and behaviour on the Substrate framework, which can provide a basis for expected adoption trends on the Polkadot mainnet.
- Adoption of the Substrate framework – There have been 22 independent Substrate-based blockchains whose mainnet versions have been launched including Polkadot, Kusama, Darwinia, Centrifuge, Clover, and SORA.
- Decentralized applications (dApps) – Hundreds of projects are built with Substrate or solutions that interact with Substrate-based blockchains, and will be fully compatible with the Polkadot ecosystem
- Number of Accounts holding DOT – The Network Adoption metric covers on-chain data, which shows various statistics of the Polkadot network, such as how many DOT accounts there are, and how many accounts hold DOT. Currently, 89,260,416 accounts hold DOT on the Polkadot mainnet.
- DOT Transaction Amount and Daily Transfer Count – Since July 16, 2020, the average daily on-chain transaction volume was 13.6 million DOT. Volume spiked to 194.8 million on August 18, 2020, the day the transfer function of the DOT token was enabled.
- Transfers on the Polkadot network – From July 12, 2021, to October 11, 2021, daily transfers (i.e., the act of sending funds from one account to another) averaged above 10,000, indicating a significant increase in the adoption of the network.
*All figures accurate at time of writing
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About EQONEX Group
Eqonex Limited is a digital assets financial services company focused on fairness, governance, and innovation. The group encompasses cryptocurrency exchange EQONEX as well as an over-the-counter trading platform. It also offers a front-to-back integrated trading platform, Access Trading, a securitization advisory service EQONEX Capital, market leading hot and cold custodian Digivault, and asset manager Bletchley Park.
For more information visit: https://group.eqonex.com.
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