Why Polkadot Will Be The Next Massive Altcoin

Are Altcoins Slowly Taking Over The Market?

A well-known debate in the cryptocurrency space revolves around the battle between the world’s first cryptocurrency, Bitcoin and whether it will stay dominant over its altcoin counterparts.

Many old school crypto enthusiasts still say that Bitcoin is king and forever will be. However, today there are many other cryptocurrencies that arrived at the party later, aiming to target the drawbacks of Bitcoin and provide better alternatives by creating more fluid, inclusive and intelligent ecosystems.

In fact, during the most recent Bullrun, it can be argued that the power of altcoins, including ETH, ADA, SOL and DOT, to name a few, have carried the market to new heights, allowing it to pass the US$2 trillion mark for the first time. This has also been met by widespread excitement from developers and innovators who are gearing up to utilize the power of these alternative blockchain networks to build systems that will transform the way individuals and industries interact with one another.

Polkadot (DOT), An Altcoin to Watch Closely

Polkadot (DOT) is a project that we at Master Ventures believe has the power to push and adapt blockchain technology to new levels. This is because it enables true interoperability, economic, and transactional scalability, low gas fees, enhanced security and user-driven governance to streamline Web 3.0 technology with the vision of creating a more private and decentralized internet.

Founded by Gavin Wood (a co-founder of Ethereum) alongside Peter Czaban and Robert Habermeier in 2016, Polkadot is often referred to as the “Ethereum killer”. This is due to its parachain functionality, which allows different blockchain networks, including Ethereum, to interact with one another in a cost-effective and efficient manner, widening the scope and reach that DApps and DeFi protocols can experience.

The project’s native cryptocurrency, the DOT token, hit the markets in September 2020 and was initially valued at under $3. Over this time, it has experienced monumental growth, capping out at an all-time high of $49.69 in May 2021.

Market analyst’s claim that DOT is going to experience much more growth in months to come. This is because there are many key developments on the Polkadot network that include parachain auctions, a rapidly growing ecosystem of DeFi projects interested in launching on its blockchain, and a steady increase in daily trading volume. Moreover, as a PoS blockchain system, holders of DOT can already stake their assets to support the network and accumulate even more tokens passively alongside being able to take part in network governance processes.

Why We Think Polkadot (DOT) Will Succeed

Polkadot has been designed to be far more scalable than its predecessors as it is much more than a solo blockchain network but, in fact, an internet of connected blockchain networks. Its central chain (referred to as the relay chain) provides the underlying security for the network, and its parachains (side chains) are there to increase interoperability and capacity en masse. This will allow DApps and actors on the Polkadot network to interact with a whole array of services and functions provided through systems that are built on multiple blockchains that are all communicating with each other and bridged through the Polkadot ecosystem.

In simpler words, Polkadot supports its own ecosystem and integrates with existing networks (including Bitcoin and Ethereum). This gives it an edge as it allows communication between platforms that couldn’t normally communicate previously, which will enhance the transfer of data, value and information from one DApp or chain to another, making it far more than just a standard blockchain. Moreover, because of its parachain structure, it will be able to process a vast amount of transactions, as many as 1 million transactions per second, according to its founder Gavin Wood.

At Master Ventures, we are extremely bullish on Polkadot and projects being developed on it and we have already backed a number of players in its ecosystem, including Polkafoundry, Polkadex, and Polkaswitch, to name a few. We are looking forward to seeing what potential it will bring to the blockchain and cryptocurrency space as a whole due to its groundbreaking vision to deliver the Web3.0 internet to the world.

Disclaimer

This is not investment advice. This article has been written to express our pure love and excitement for Polkadot as a project that is seeking to change the internet as we know it. Cryptocurrencies have come a long way since their inception; however, they are still risky and volatile assets, so much caution must be exercised when investing. However, if you can handle the volatility, Polkadot is a project to keep your eyes on.

About Polkadot

Polkadot is a sharded heterogeneous multi-chain architecture that enables external networks as well as customized layer one “parachains” to communicate, creating an interconnected internet of blockchains. The network uses an environmentally-friendly proof of stake consensus algorithm.

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About Master Ventures

Master Ventures is a blockchain-focused venture studio helping to build the next generation of blockchain-based Web 3.0 system innovations within the crypto industry. Launched in 2018 by Founder and CEO Kyle Chassé, the company’s ethos can best be summarized in the acronym #BeBOLD: Benevolent, Open, Love, Decentralized.

Master Ventures co-creates with entrepreneurs and businesses worldwide to turn the best ideas into innovative and disruptive products. They do this by investing as strategic partners through offering advisory services to the projects they believe in. To date, Master Ventures has invested in over 40 crypto projects, including the likes of Kraken, Coinbase, Bitfinex, Reef, DAO Maker, Mantra DAO, Thorchain, and Elrond.

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