Revolutionizing DeFi: Polkadot Leads the Way at Permissionless II

• At the fourth Decoded conference, Wood used an analogy to illustrate his vision, comparing Polkadot’s exploration path to Ethereum.

• Wood envisions Polkadot as a computer with multiple cores, where specific cores are reserved for parachains.

Gavin Wood, the founder of Polkadot, suggests a major restructuring of the network’s resource allocation system, commonly referred to as Polkadot 2.0. In his presentation at the fourth edition of the Decoded conference in June, Wood delved into philosophical ideas while outlining his vision for the ecosystem’s progress. He envisioned a network of independent chains interconnected through treaty-like agreements known as “accords.”

At the fourth Decoded conference, Wood used an analogy to illustrate his vision, comparing Polkadot’s exploration path to Ethereum, another project he helped establish. Following the launch of Polkadot in May 2020, Wood transitioned from being the CEO of Parity Technologies to assuming the position of the network’s chief architect in October 2022. 

Although the core component of Polkadot, known as parachain auctions, was not introduced until November 2021, during the previous cryptocurrency bull market, its unveiling led to a significant increase in the price of Polkadot’s native token, DOT. However, this initiative encountered challenges from the competitive and unpredictable nature of parachain auctions.

Shifting Focus from Chains to Resources

Wood envisions Polkadot as a computer with multiple cores, where specific cores are reserved for parachains. However, the central aspect of the Polkadot 2.0 vision revolves around a shift in focus from chains to “space” or the resources that chains require. Wood emphasized the need for a more adaptable system, acknowledging that although the slot auction model appeared attractive, it presented perceived and actual barriers.

In the proposed framework, the allocation of “core time” would occur through a marketplace that caters to both instantaneous on-demand and bulk long-term needs. Wood suggested that these monthly blocks of core time could be represented by fractionalizable NFTs, allowing owners of bulk time to allocate computation on a Polkadot core.

Under this new system, all existing leases would continue as they are, with the initialization of bulk pricing requiring governance intervention.

Polkadot 2.0 Vision

The essence of the Polkadot 2.0 proposal lies in prioritizing application-centricity over chain-centricity. Wood emphasized that Polkadot is a platform for constructing user-oriented applications that extend seamlessly across chains, benefiting both users and developers.

Polkadot’s resilient infrastructure enables the deployment of applications and pseudo networks, necessitating additional attention to collators and network uptime. In certain cases, it may be advantageous to directly deploy smart contracts on cores, bypassing the concept of parachains altogether.

The Polkadot 2.0 initiative represents a significant evolution of the blockchain network, with a greater emphasis on resources (referred to as “space”) rather than chains. Through a redesigned resource allocation model, Polkadot aims to enhance the system’s agility, focusing on applications and optimizing the user experience.

Polkadot Price Analysis

According to the most recent price update provided by Crypto News Flash, the current value of DOT stands at $5.29. Despite a minor 1.69% decrease in the past 24 hours, the cryptocurrency has sustained a positive momentum with a seven-day rally of 4.8%.

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