Polkadot is a multi-chain protocol that has several “parachains,” similar to Ethereum Shards. DOT works on its proprietary technology called Substrate.
The platform is fully interoperable between different blockchains while maintaining the ability to process thousands of transactions per second. Substrate 3.0, which will bring Ethereum compatibility, is expected to launch in the first half of 2021.
Positive newsflow has been fueling the rally
According to Polkadot creator Gavin Wood, the emergence of projects like Acala and Moonbeam focusing on Ethereum compatibility helped fuel the growth in DOT’s value. Acala is Polkadot’s gateway into the decentralized finance (DeFi), while Moonbeam is an Ethereum-compatible toolkit for smart contract deployment.
Binance Labs announced on Feb. 9 a $2.4 million investment in Plasm Network, a Polkadot-based smart contract platform. Plasm is a leading parachain candidate supporting Ethereum and Layer-2 scaling solutions.
A week earlier,