Polkadot is a network protocol that allows arbitrary data—not just tokens—to be transferred across blockchains. This means Polkadot is a true multi-chain application environment where things like cross-chain registries and cross-chain computation are possible. Polkadot can transfer this data across public, open, permissionless blockchains as well as private, permissioned blockchains. This makes it possible to build applications that get permissioned data from a private blockchain and use it on a public blockchain. For instance, a school's private, permissioned academic records chain could send a proof to a degree-verification smart contract on a public chain.
Polkadot unites a network of heterogeneous blockchains called parachains and parathreads. These chains connect to and are secured by the Polkadot Relay Chain. They can also connect with external networks via bridges.
1.0 Our Findings: Business Model Innovation
Why do we think that Polkadot is one of the smartest network protools across WEB3 ? It is because of its BMI.
BMI is a novel replacement of the existing BM that provides product or service offerings to customers and end users that were not previously available. Furthermore, Business model innovation is the art of enhancing advantage and value creation by making simultaneous—and mutually supportive—changes both to an organization's value proposition to customers and to its underlying operating model.
Polkadot's 6 areas of BMI
True interoperability Polkadot enables cross-blockchain transfers of any type of data or asset, not just tokens. Connecting to Polkadot gives you the ability to interoperate with a wide variety of blockchains in the Polkadot network.
Economic & transactional scalability Polkadot provides unprecedented economic scalability by enabling a common set of validators to secure multiple blockchains. Polkadot provides transactional scalability by spreading transactions across multiple parallel blockchains.
Easy blockchain innovation Create a custom blockchain in minutes using the Substrate framework. Connect your chain to Polkadot and get interoperability and security from day one. This ease of development helps Polkadot's network grow.
High energy efficiency Polkadot consumes a small fraction of the energy used by conventional blockchains thanks to its next-generation nominated proof-of-stake (NPoS) model. Using the equivalent of ~6.6 US households worth of energy per year, Polkadot has the lowest carbon footprint among proof-of-stake protocols analyzed in recent research.
Security for everyone Polkadot's novel data availability and validity scheme allows chains to interact with each other in a meaningful way. Chains remain independent in their governance, but united in their security.
User-driven governance Polkadot has a sophisticated governance system where all stakeholders have a voice. Network upgrades are coordinated on-chain and enacted autonomously and without forking the network, ensuring that Polkadot’s development remains future-proof and community-driven.
Polkadot’s relay chain is built with Substrate, a blockchain-building framework that is the distillation of Parity Technologies’ learnings building Ethereum, Bitcoin, and enterprise blockchains. Polkadot’s state machine is compiled to WebAssembly (Wasm), a super performant virtual environment. Wasm is developed by major companies, including Google, Apple, Microsoft, and Mozilla, that have created a large ecosystem of support for the standard. Polkadot’s networking uses libp2p, a flexible cross-platform network framework for peer-to-peer applications. Positioned to be the standard for future decentralized applications, libp2p handles the peer discovery and communication in the Polkadot ecosystem. The Polkadot runtime environment is being coded in Rust, C++, and Golang, making Polkadot accessible to a wide range of developers.
Polkadot is one of the few projects with real BMI. This results in the project's current position of being a smart & advanced and an investable project.
Key Purpose: Uncovering The True Value of Polkadot.
Key Readings & Sources:
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