Entertainers can benefit from the earning model propagated by the Non-Fungible Token (NFT) industry according to Kanye West, who now goes by Ye. In a recent rant, Ye noted that it was unfair that celebrity photographers and news outlets could earn money from using celebrities’ images without giving the owners of the image a cut […]
Polkadot is one of the most promising blockchain networks in the crypto market. But the cryptocurrency is one of the Layer 1 solutions that has not yet been able to establish itself at the top. In this article, we’ll discuss why Polkadot isn’t at the top yetand give 3 Polkadot cons.
What is Polkadot Crypto?
Polkadot is a next-generation blockchain that solves the problem of interoperability. The basic concept of Polkadot is to bring one standalone blockchain for all. Thus allowing sectors like healthcare and pharma to use blockchain tech. Polkadot also assembles special features of different blockchains in one place. Hence, helping the blockchain technology to overcome limitations like scalability and throughput.
#1 Polkadot Cons – Interoperability
One of the biggest issues Polkadot wanted to address with its blockchain is interoperability. Through its numerous sidechains, the parachains, several blockchain networks should be connected with each other. Probably the most important connection is the one to the largest network on the market, Ethereum.
However, unlike networks like Fantom, Binance Smart Chain, Avalanche, and Harmony, Polkadot has not released a dedicated bridge to Ethereum in 2021. Therefore, the network received less attention from users looking to invest in DeFi and NFTs. The bridge to Ethereum should be a big topic for Polkadot going forward.
#2 Polkadot Cons – Late Launch of Parachain Auctions
In contrast to other blockchain solutions, Polkadot started its mainnet launch activities relatively late. This was because the parachain auctions didn’t start until November 11, 2021. That’s when Moonbeam, an Ethereum-compatible smart contract parachain, secured its first slot.
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We therefore only saw the first strong price increase of the DOT token in November. In the weeks that followed, the market repeatedly crashed, which also made it difficult for the price of the Polkadot DOT token.
#3 DOT Token Confusion
The DOT token is used in the Polkadot network to support operations, security, and governance functions. On competing networks, the native tokens are more likely to be used to perform token transfers or swaps. They can be staked with high annual returns.
Many of these functions are not available with the DOT token. The average user is far less interested in governance than in things like gaming, NFTs and DeFi. This is another reason why Polkadot and the DOT token were not as convincing as other Layer 1 solutions in 2021.
The Solana blockchain suffered another incident that clogged the network and hindered DeFi users from adjusting their collateralized positions. The latest Solana network issue came amid the ruthless crypto market-wide rout. The outage subsequently allowed XRP to replace SOL as the 7th-largest coin. XRP Flips Solana The Solana network went offline last weekend, starting from […]
Binance, the world’s leading blockchain and cryptocurrency infrastructure provider, today announced that it has joined the National Cyber-Forensics and Training Alliance (NCFTA), a nonprofit corporation focused on identifying, validating, mitigating, and neutralizing cybercrime threats. Binance is the first organization from the blockchain and cryptocurrency industry to formally join the alliance. The NCFTA was established in […]