When it comes to smart contract platforms,
you know the main players in the game,
Ethereum, Cardano, Cosmos,
but one of them is already a major player,
and we haven't really seen what it can do yet.
The fact is,
I can't tell you a guaranteed winner.
I don't know what's going to happen in the market for sure.
But if you're looking for a smart contract platform project
that could outpace the field in the next bull market,
well, we got one to show you today.
Let's get it!
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Today, we are going to be taking a look at Polkadot
and why it has potential to be one of the biggest gainers
for major coins in the next bull run.
Why?
Well, we can get into tech,
we can get into the reasons why we like Polkadot,
the interoperability, the parachains,
so much,
the founder,
but the fact is,
right now, if you look at many of the top major coins,
Polkadot is down much further from its all-time high
than many of the others.
That means just to get back to where it was
is a bigger gain than many other projects getting back to their previous all-time highs.
So, who is behind Polkadot?
Well, that's none other than Gavin Wood.
Now, Gavin Wood, one of the co-founders of Ethereum,
of course, with Charles Hoskinson, Vitalik Buterin and many others,
and you may not know this,
but Gavin Wood actually wrote Solidity,
the smart contract programming language of Ethereum.
So I know what you're wondering right now.
Why is it called Polkadot?
Do they love the polka?
Do they like bikinis with dots on them?
No, the answer is because the infrastructure of Polkadot
kind of looks similar to a series of dots.
Each dot being its own blockchain.
Polkadot's focus is interoperability.
So if you imagine a Polkadot pattern,
with all these dots being their own blockchain,
you can think of it as a blockchain of blockchains.
You look at the entire picture of Polkadot's ecosystem,
and it should flow fluidly together.
So I mentioned interoperability.
What does that even mean?
Well, interoperability is basically how blockchains can or cannot communicate with each other.
If a blockchain cannot communicate with another blockchain,
then it is not interoperable.
You can think of Bitcoin and Ethereum like that.
They are not interoperable.
Now, you do have wrapped Bitcoin that can be put on Ethereum networks,
but synthetic is not the same thing.
DOT is aiming to be interoperable by being the highway
that connects all the other blockchains so they can communicate together.
You might have heard of sharding.
Well, Ethereum is trying to get sharding with the next stage of the roadmap.
It may take many years.
Well, Polkadot, by God, it's already got sharding.
Now, sharding isn't what you think it might be.
It might have been something that you talk about in the seventh grade with your friends.
No, this kind of sharding is actually sending information extremely quickly
by breaking up the information into several different pieces
and then reassembling those pieces when it gets to its destination.
It's the way that Pirate Bay or BitTorrent works.
Breaks up files,
sends them quicker,
it's in a decentralized way.
There's not one place that has all the information for the file.
When it gets to the destination, it all comes back together,
kind of like Voltron.
Now, Polkadot actually has a layer 0.
We talked a lot about layer 1 blockchains.
We just use that generally to refer to the type of smart contract coins in this space.
Polkadot has a zero layer.
This is called the Relay Chain.
It's the main chain.
And it does not support smart contracts.
So, you got the Relay Chain?
Well, what does it connect to?
Well, that's where the parachains comes in.
I'm not talking about your favorite rapper 2 Chainz.
You see? Pair of chains?
I love that joke. It's a great one!
I think you like it too.
Parachain stands for parallelized chain.
I have no idea if I said that word correctly.
But the point is,
these chains run parallel to the Relay Chain.
And what happens is,
they're all interoperable with each other.
This infrastructure allows for an incredible amount of scaling.
Now, right now, there are 100 parachain slots.
Companies have to run an auction in order to be able to win a bid
to get one of the spots to become a Polkadot parachain.
Right now, there are 29 auctions that have been spoken for.
So, obviously, if you want to buy Polkadot,
and you watch crypto YouTube,
then, most likely, you're interested in it
because you think there could be some price appreciation.
You think that there's some speculation,
this can be a great project,
leads to more users,
and that the value could ultimately go up.
Now, I can't tell you whether or not that's going to definitely happen.
In general, what we see is major crypto projects over time tend to go up.
Of course, if you hold DOT in an exchange somewhere,
then you're just watching for it to go up.
But DOT actually has a purpose in this ecosystem.
While certainly most people invest in coins because of this price speculation,
there's also ways to get involved with the network itself.
And with Polkadot, it's pretty easy how.
The amount of DOT that you have determines how you can play a role in the community.
To have an active account on the Polkadot network,
you just need one DOT.
If you want to participate in crowdloans for the network,
well, you're going to need 5 DOTs.
Now, staking has certainly been controversial
because of third party staking companies like Celsius going under.
However, there are ways to stake on-chain with different coins.
With Polkadot, you can stake on the network if you have 10 DOTs.
And if you always wanted to have an on-chain identity,
or if you ever wanted to vote for council,
no, this is not Star Wars.
This is an actual thing you can do on the Polkadot network.
All it's going to take you?
20 DOTs.
So you may be wondering since the last video we made on Polkadot,
what's changed?
Well, here's some of the updates.
In the last few weeks,
Polkadot's actually released a brand new roadmap.
It includes something called Asynchronous Backing.
It increases scalability by increasing the block capacity.
For every block on a parachain,
the time to print that block has now been cut in half.
Now, if you're not aware of Kusama,
Kusama has kind of been called the canary network for Polkadot.
Everything gets tested on it first and then moves over to Polkadot itself.
The Asynchronous Backing, like anything else, is going to roll out first on Kusama,
and when it's ready, then it will move on to Polkadot.
By the middle of next year,
they're going to roll out something called parathreads.
So instead of buying an entire parachain spot,
companies or projects will be able to pay as they go.
The new roadmap also includes the third version of XCM.
It's the universal language for cross-chain communication,
which, of course, leads to more interoperability.
So as we mentioned at the top of the video,
a lot of projects are down considerably from their all-time high,
and DOT is as well.
It's down over 90%.
Well, if you look at Bitcoin, Ethereum and many other coins,
they're in the 70% range,
a 70% decrease from their all-time high.
So if you're looking for projects in the bull run
that have a favorable chance to do well financially or speculatively,
some of these projects, like Polkadot, that fall in the 90% and above range
down since their all-time high,
well, just to get back to their all-time high,
they've now made a gigantic increase in price.
So, if you were to look at this as a game where all coins go back to all-time highs,
well, Polkadot would be 20% more profitable than many other projects.
So let's say Polkadot gets to where Bitcoin is now in market cap.
Yes, Bitcoin is No. 1.
I don't think Polkadot is going to pass Bitcoin,
but as the entire market cap grows into the trillions
and trillions and trillions of dollars,
it's fun to kind of look forward and say,
if Polkadot was able to get where Bitcoin is now,
if Polkadot were to achieve this,
the market cap of Bitcoin,
one DOT would be worth $325.
So, recently, Polkadot has been in a fierce battle with Polygon for the No. 11 spot.
No. 10 has been Dogecoin.
Polkadot had held that No. 11 spot for quite a while,
but recently Polygon passed it, bumping Polkadot down to the 12th spot.
Now, I can't give you financial advice, like I say all the time,
but if you're in the market to maybe add Polkadot to your portfolio,
where can you do it?
Well, you can use Binance,
only the largest exchange on planet Earth and definitely one of the most trusted.
If you want to sign up for Binance,
we got a deal where you can get up to $600.
All you've got to do,
click the link either down below in the description,
or we'll pop it up right here for you guys.
So we've been talking on the live streams lately
about how Sam Bankman-Fried is trying to destroy decentralization in America.
But Polkadot offers a different vision.
Polkadot wants to create a completely decentralized internet
where the users are in control.
While many investors get so hung up on the price,
the best projects have teams that don't focus on price at all.
All they focus on is moving their project forward.
And Polkadot definitely fits that category.
People behind Polkadot, they're looking at the future of Web3.
They don't really care where the price is today or tomorrow.
So September was a big month.
We, of course, had ETH 2.0.
It moved from proof-of-work to proof-of-stake in the Merge.
And then Cardano also hit a massive stop on its roadmap
with the launch of the Vasil hardfork.
All that being said,
Polkadot still had a higher amount of development than either one of those projects.
DOT had 522 events,
ADA had 445,
and ETH, well, they only had 400.
This shows the excitement of developers to get involved with this project.
In the long run,
the interoperability play, along with being in the future of Web3,
is why we believe that Polkadot has big potential.
If you're a fan of DOT,
make sure to smash that like button, subscribe down below.
We'll be doing more Polkadot content in the future.
That's all I got.
Be blessed.
BitBoy out.