Polkadot vs Ethereum Which is Better
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Ethereum (ETH) is the first blockchain technology that enables smart contracts and with time has become a famous platform for many other cryptocurrencies to run smoothly. Since its initiation as a smart contract in 2015, many other platforms have been competing with Ethereum. These blockchain platforms are known as Ethereum Killers attempt to outrun Ethereum.
However, there is no proof of any comparable success yet. In this effort to compete with Ethereum, Polkadot (DOT) is by far the most competitive candidate that has come close to the margin to defeat ETH. Gavin Wood, the founder of Polkadot in many respects is responsible for this. Besides being the dynamic founder of Polkadot, he is the co-founder of Ethereum and the author of Solidity, the programming language used to create Ethereum smart contracts.
So, which is better, Polkadot or Ethereum? In today’s article, we have tried to deduce the similarities and differences between the two blockchain platforms to determine which one has a stronger hold in the future. In doing so we will also compare their benefits and drawbacks.
What is Ethereum?
As mentioned earlier, Ethereum is a blockchain-based platform. Its native cryptocurrency is ether and is hence is also familiar as ETH or just Ethereum. The distributed blockchain legder keeps the network secure allowing ETH to grow in value.
The platform along with ether supports a network of decentralized apps or dApps. Smart contracts, which emerged on the Ethereum platform, are an integral part of the network’s functionality. A large number of decentralized finance (DeFi) and other applications utilize smart contracts and blockchain technology.
As a matter of fact, Ethereum is the second most popular cryptocurrency in market value after Bitcoin.
Ethereum primarily finds its usage financial services and it aims to expand it to large-scale transactions all around the world. The Ethereum 2.0 development team is putting a lot of emphasis on scalability, intending to provide fast and efficient transactions between everyone. Once accomplished, this will have worldwide applicability.
What is Polkadot?
Polkadot similar to other cryptocurrencies is both a token and a decentralized platform same as Ethereum. The idea behind the Polkadot project is popular as a next-generation blockchain because it aims to create a multi-chain framework connecting various other cryptocurrencies for better communication.
DOT is the native coin of the Polkadot ecosystem and attempts to solve blockchain’s major problems, such as scalability and security. The idea originally conceived in 2016 took a few years to materialize. The token found its space on Coinbase in June 2021, providing it final recognition.
Polkadot vs Ethereum: Similar or different
In terms of similarities, both Ethereum and Polkadot aspire to provide a platform where developers can design decentralized applications. Smart contract functionality is available on both platforms. Both platforms, in fact, are pursuing a parallelized execution scaling strategy.
In Ethereum 2.0, each execution thread is referred to as a shard, while in Polkadot, it is referred to as a para chain or part thread. Wasm will be the underlying technology for on-chain logic and state transitions in both Ethereum 2.0 and Polkadot.
Despite the similarities, however, there are significant distinctions between Ethereum and Polkadot.
Design goals are one of the most significant variances. Ethereum aspires to provide a platform for distributed finance and smart contract execution, whereas Polkadot aspires to assist individuals in creating full blockchains and connecting them.
Ethereum uses a single blockchain to process all transactions, run all apps, and validate the network through mining. All of this is done while relying on a slow PoW consensus technique that drastically restricts performance. That’s why, on days when there’s a lot of traffic, network congestion is typical.
Polkadot prefers a multi-chain environment. The Polkadot principle permits different chains to specialize while sharing resources, rather than relying on a single chain to handle everything.
Working mechanism: The Proof of Stake vs. Proof of Work consensus
The two tokens have distinct methods of verification. To verify transactions, Polkadot uses a proof of stake scheme. Validators lock up currency in a proof of stake system in exchange for the chance to verify transactions and receive block rewards. Block rewards are a percentage of transaction fees paid to users who verify transactions.
On the other hand, Ethereum uses proof of work consensus protocol. Miners in the proof of work consensus compete to build new blocks. The winner wins some freshly minted ETH and shares the new block with the rest of the network. Whoever can answer an arithmetic puzzle the fastest wins the race.
Crypto Exchanges That Support Polkadot and Ethereum
If you are interested in buying either of these coins, use one of our trusted crypto exchanges below:
Polkadot vs. Ethereum, which is better?
It is indeed hard to decide which is a better cryptocurrency or a better blockchain platform. Each token has its own unique characteristics and future perspective. As seen, Polkadot attempts to connect chains making it easier for other platforms to connect with each other whereas Ethereum wants to create a secure public blockchain for high-value transactions. In terms of adoption, Ethereum might be the winner. because it is one of the oldest blockchain platforms and is already trending in second place. It also has a lot more practical applications and after its upgrade to proof of stake consensus, it will be even more accessible.
DOT no doubt has greater potential in the long run. As for now, it is a relatively young coin that has already experienced significant price fluctuations. This might lead to something big or a downfall. We don’t know yet. In either scenario, both tokens have the ability to change cryptocurrency’s future.