What is Polkadot (DOT) crypto?
Polkadot is a shrading multichain protocol connecting and securing blockchain networks along with facilitating the transfer of data, and other assets across chains. This helps the data to become interoperable. The foundation for decentralized internet for blockchains which we also call the Web3 was laid out by Polkadot.
Polkadot is also called layer-0 metaprotocol since it describes a format of network for layer 1 blockchains also called parachains (parallel chains). Polkadot is also capable of effortlessly updating its code with the help of on-chain governance according to the votes of the community. Polkadot also serves as the foundation for the decentralized web which shall eventually be controlled by the users and shall simplify the creation of new services, applications, and institutions.
Polkadot is also capable of connecting private and public chains, oracles, and permissionless networks thereby allowing these technologies to share information in a trustless fashion through its relay chain. In 2021, Polkadot also conducted Parachain auctions followed by an un-permission candle auction system.
The current (March 31, 2022, 4:31 PM IST) Polkadot price is $22.90 with the current market capital standing at $22,617,804,099.
Chainlink was founded in the year 2017 and served as an abstraction layer for enabling smart contracts connected universally. Chainlink is an oracle network that is decentralized in nature and provides the required stream of data to the smart contracts running on various blockchain platforms. The primary goal of the blockchain system is to make smart contracts even more powerful by helping them draw data inputs gathered from other sources.
The type of data varies from supply chain management to price feeds, smart sensor temperature data inputs, scores in a cricket match, etc. Everything and anything relevant to the purpose of blockchain. There is no native blockchain for chainlink. Rather it integrates along with various blockchains providing relevant information. It also acts as an oracle aggregator apart from behaving as an oracle. The data from several data providers are purchased by chainlink which is then streamed to various blockchains accordingly.
The data providers ensure that the data is authentic and up to date because the display of inaccurate data will cause them a negative reputation and thus be removed from the network. Decentralized applications (DApps) that run on the Ethereum network are also empowered by Chainlink. It accesses data for these DApps and bridges the gap between secure blockchain environments and the real world. This makes the entire ecosystem faster and smarter. The current Chainlink price today is $17.23 (March 30, 2022, 17:35 IST). The market capitalization of the crypto asset at the time of writing is $8,047,193,109.
The unique features of the Polkadot (DOT) crypto are:
The unique features of Chainlink (LINK) are:
|Comparison Basis||Polkadot (DOT)||Chainlink (LINK)|
|Launch date||October 2017||2017|
|Founders||Dr. Gavin Wood, Robert Habermeier, and Peter Czaban.||Sergey Nazarov|
|Use case||Fast transactions and improved scalability due to parallel chains.||Chainlink provides the required stream of data to the smart contracts running on various blockchain platforms.|
|Circulation Supply**||987,579,314.96 DOT||467,009,549.52 LINK|
*All values are latest by 30 March 2022, 7:15 PM IST.
Additional Read: DOT Price Prediction: Will it Plunge Below $10 by the end of Q1 2022?
One of the most important points to note here is that Chainlink and Polkadot are not direct competitors in any traditional sense. One can show great market performance without affecting the performance of the other. Rather, many experts believe that the two work together in many ways.
The primary aim of Polkadot is to allow the exchange of any type of data between any type of blockchain. The vision of Chainlink is somewhat similar where it functions as a decentralized network connecting Ethereum and other Ether-based tokens to information sources that are off-chain. The visions have already started to merge. The Chainlink data oracles have started to develop a connection with Polkadot’s main network a few months back. This has helped developers to build more services and programs around various Polkadot and Chainlink functions.
However, despite all the similarities, there are a few differences between the two. One of them is Polkadot operating a larger ecosystem than chainlink. Experts believe that Polkadot will continue to stay larger and therefore more important than its oracle network partner. Even with historic data, Chainlink has surged only 45% from its previous price rally while Polkadot has surged by 450% in the same time. Nevertheless, the vital and unique role played by chainlink in the expansion of decentralized finance (DeFi) must not be neglected.
Having said that, you should always do your research before investing in any coin. Do not fall for social media-led discussions and do your research.
Additional Read: Top Polkadot Ecosystem Tokens Price Prediction
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