Which Of These Two Can Rule The Web3 World : Polkadot Or Ethereum
The Ethereum 2.0 upgrade is expected to be a game-changing development for most casual digital asset investors since it will increase productivity, lower network costs, and bring the entire blockchain and cryptocurrency field closer to a Web3 world reality.
Since Ethereum is the most popular platform for developing smart contracts and decentralized applications (DApps), switching to a more dependable and scalable proof-of-stake (PoS) blockchain will be a welcome relief for Ethereum struggling with an inability to scale and rapidly rising gas costs. However, most inexperienced investors are unaware of Polkadot’s Substrate platform’s significant advancements in creating a competing decentralized internet infrastructure that many predict will eventually surpass Ethereum’s.
Polkadot’s importance as a link between Ethereum’s ecosystem and the myriad One of Polkadot’s main selling points has been the variety of options that make up a Web3 world experience the publication of the white paper.
So how does Polkadot stack up against Ethereum? How far along is Ethereum in its quest for a decentralized internet, and how serious of a threat are Polkadot’s parachains to the dominant smart contract network? Here is a quick look at the technological details that set the ecosystem of Polkadot apart from the impending upgrade to Ethereum.
Two ways to access the decentralized internet
We must first contrast Polkadot’s Substrate with what Ethereum is now providing to fully grasp the value that Polkadot offers.
There is no doubting that Ethereum was once a ground-breaking technology and a highly sought-after DApp development platform. Scalability, however, has developed into Ethereum’s fatal flaw over time. The Ethereum blockchain can only perform 15 transactions per second (TPS) with an estimated 1 million transactions per day, which results in unstable gas prices. Even though this figure is expected to rise with the adoption of Ethereum 2.0, it will still be much below the theoretical processing capacity of centralized systems like Visa, which is well over 1,700 TPS.
Ethereum’s obsolete consensus methods use up to 112.15 TWh of energy annually, similar to the power consumption of Portugal or the Netherlands. This adds to the network’s slowness and congestion. To add new blocks to the chain and validate transactions, Ethereum mainly relies on a proof-of-work (PoW) process that needs computationally demanding to mine.
By switching from a PoW algorithm to a more effective PoS algorithm, Ethereum 2.0 intends to alleviate these worries and eventually enable Ethereum to become carbon-neutral and increase speed.
Sharding, a scalability solution that divides the network into smaller, parallel-processing units, will also be used in Ethereum 2.0. Ethereum will theoretically be able to handle an endless number of transactions per second, but in reality, this will be constrained by the number of produced shards.
Even if the testnet is operational, the transition to Ethereum 2.0 is still a work in progress. Ambitious project creators, including Ethereum co-founder Gavin Wood, departed the platform out of frustration and started the Web3 World Foundation and Parity Technologies. Parity Technologies and the Web3 World Foundation developed three key technologies: Parity Ethereum (also known as Serenity), Parity Substrate, and Polkadot.
📢Polkadot Vs. Ethereum: Who Will Rule In The Web3 World
— Everything crypto (@bruindesimon) May 16, 2022
Their successes and setbacks
Parity Technologies, a provider of core blockchain infrastructure, offers a variety of tools and technologies that enable developers to easily and quickly deploy their blockchains. Polkadot, Kraken, and Chainlink are some of the most well-known blockchains in the world, and they are all powered by the Parity Substrate, a toolset for creating unique blockchains from the ground up.
Parity, On the other hand, Ethereum is the program that powers clients for Ethereum 2.0 like Geth and Prysm. The Substrate architecture, which is used to create unique blockchains or parachains on top of the Polkadot Relay Chain, is the key contribution made by Parity to Polkadot.
A substrate is more modular and enables the creation of customized blockchains compared to Ethereum’s current structure and planned sharding framework. The features that developers want for their parachains can be customized to the level of technical difficulty they can handle.
Here are some instances of how different blockchains created with Substrate may do various tasks:
- Zeitgeist uses prediction markets for on-chain governance, which are analogous to sports betting or wagers on the weather for the upcoming week.
- For decentralized identifiers (DIDs), KILT is a very intricate system that aims to introduce identity to Web3 world.
- Two Substrate blockchains that can communicate and have social interactions embedded into the code makeup Subsocial (a palette for making posts, another for comments, another for reactions, etc.).
As a result, Substrate makes it far simpler than starting from scratch for users to put together a few palettes and launch their chains in under an hour. They might eventually outperform Ethereum in some jobs by a wide margin. Additionally, they can still engage with one other without difficulty thanks to XCMP, a cross-consensus messaging format created for Polkadot that enables the communication between networks that utilize the same relay chain.
Substrate allows any developer to create forkless blockchains on any ecosystem outside Polkadot or Ethereum that may upgrade without the need for hard forks. Additionally, Substrate gives programmers access to a library of modules that can be used to make legacy chains like Bitcoin and Ethereum and new blockchains compatible with one another. And when using Substrate, you don’t even have to develop blockchains that connect to Polkadot.
Polkadot uses a Nash equilibrium staking game to reward validators for acting in a way that benefits the network. This contrasts with Ethereum’s present focus on compensating miners for their work, frequently resulting in centralization and high entry hurdles.
With the capacity to perform almost 1,000 transactions per second compared to Ethereum’s meager 15 transactions per second, the Polkadot Relay Chain is also created far more scalable than Ethereum’s. The fact that Parity Technologies did experience a significant security breach in its multi-sig wallet software in 2017, during which more than $30 million worth of ETH was taken from numerous multi-sig wallets, which may be the main weakness in Polkadot’s defenses.
Instead of conflict, emphasize complementarity.
When everything is said and done, Polkadot is a platform that complements Ethereum because both blockchain ecosystems aim to create a truly decentralized Internet.
Polkadot has many features and increased capacity, but it is still in its early stages and only has a few applications running on its network (Moonbeam and Moonriver). It has hundreds of thousands of developers and projects. Ethereum continues to be a master of all crafts, which offers it a considerable advantage in terms of acceptance. In the decentralized future, Polkadot and Ethereum can coexist and complement one another while having different uses.
A sneak peek of the future
Both Ethereum and Polkadot have advantages and disadvantages. They might potentially coexist in the future to create a truly decentralized Web3 world. Programmers can use the Substrate to build decentralized video-sharing applications or social media websites that use Ethereum’s ERC-20 token economy. What the future holds for Polkadot and Ethereum is uncertain, but more developers are joining forces to hasten the transition to a Web3 internet.