Alright so I'm starting this post off because there is a lot of misinformation in our community and lack of understanding of what each one of these (and many other) crypto's are attempting to do and solve with their blockchain technology. Hearing too much of"Drop Ethereum and buy DOT, it solves all the issues Ethereum has."and not enough"Polkadot could be a good thing for Ethereum, might as well load up on both."I will not be providing any advice on what to buy, sell, or hodl in this post but rather exposing the differences between these TYPES of projects and why they do not compete with one another or how they do. These explanations are not super in-depth but I know that many aren't taking the time to actually read the documentation from these projects and hopefully some of this will help give our community a better understanding.Smart Contract Blockchain PlatformEthereum (ETH):Ethereum was the first of it's kind, at least, the first to successfully make a large blockchain platform that successfully deploys and runs smart contracts while also handling millions of transactions a day. (Running a smart contract is also considered a transaction. As of today, Ethereum has managed to put out 1.303 million transactions and there are over 3000 decentralized applications (dApps, https://ift.tt/37I1PLT those transactions in mind, Ethereum has an issue on its hands and you can guess it. Gas. Gas is the method for which the entire blockchain runs. Imagine your car, you need gas to crank it and drive it. Same thing you need gas to send transactions. Why is this? This is due to to the Proof of Work protocol that allows for these transactions to be done. I won't go into the nitty gritty. But basically, you're paying the miners to process your transaction.Cardano (ADA):Cardano is developing a smart contract platform on their blockchain technology. Supposedly it will be more feature-rich than Ethereum. However, the biggest difference between Cardano and Ethereum is that Cardano utilizes a newer concept known as Proof of Stake. Proof of stake basically has members who hold a specific token the ability to stake their tokens into a stake pool so that the representing server of that pool may process transactions and earn rewards. Those rewards are then dispersed to the members staking their funds. (Probably be riddled with attacks but this is how the Tron (TRX) network runs).Literally not much else to be said at this point, until Cardano releases Smart Contracts and their documentation and mission proves friendly enough for developers. We can't speculate whether it's a better platform than Ethereum.With ETH 2.0 expecting to come out next year, there will not be much difference between these two except for how their governance works and how their Proof-of-Stake works. With this in mind, what matters is the community between these two and which platform provides better documentation for the community and big organizations to be able to developer their own decentralized applications on.Internet of BlockchainsPolkadot (DOT)Polkadot's main goal is to utilize a relay chain to coordinate the system and the Parachains. Parachains are the platforms which will be built by other development teams to create their own blockchains ON the DOT platform. For example, if Ethereum were in the development stages of OG Ethereum, then they may have considered developing Ethereum on DOT so that some features were already handled (such as security and communications between other blockchains.)You can not run a Smart Contract on DOT's network. The relay chain was deliberately minimized in functionality so that it could focus on the main components of DOT. However, there are Ethereum competitors known as Ink!, Moonbeam, and Edgeware that will be coming out on the DOT platform as Smart Contract Parachains (blockchains.)Validators are basically servers producing blocks on the Relay chain and they receive staking rewards for producing them.Collators are nodes on both a Parachain and a relay chain, they collect transactions and produce state transition proofs for the validators to accept. Also are the method of communication between blockchains through XCMP (cross-chain message passing)Cosmos (ATOM)Cosmos main focus is Internet of Blockchains but is a tad different in how they want to interact with these blockchains compared to DOT. Seems more like ATOM wants to compete with Smart Contracts by allowing Application-Specific Blockchains. It looks like they are trying to attempt this by allowing developers to develop a blockchain that is customized to operate a single dApp. I don't fully understand how they plan to do this. I'll come back and edit this section in the morning.The main goal of Cosmos however is still to allow developers to create blockchains on top of Tendermint (cosmos default consensus engine) so that they can interoperate with one another. The main difference between DOT and ATOM is that DOT will be more specific about how you can create your blockchain in order for it to operate on the DOT network. ATOM has more freedom for the developer.I'm always welcome to criticism.
Submitted February 24, 2021 at 02:35PM
No comments:
Post a Comment