Polkadot is envisioned as an improved version of Ethereum. So what are the benefits of Polkadot and who created Polkadot. Let's find out about Polkadot in this article.
What is Polkadot?
Polkadot is a piece of software designed to incentivize a global computer network to run a blockchain on which users can start and run their own blockchains. Polkadot operates on a deeper level than blockchains like Ethereum - see it as providing a foundation upon which other crypto projects can build. It calls itself a layer 0 blockchain while Ethereum and similar blockchains like Solana (SOL) and Cardano (ADA) are called layer 1 blockchains.
The benefits of Polkadot
In August 2020, Polkadot was listed at $2.69. As of June 10, it was over $8. While well below its November high of $53.98, the current price is up nearly 240% in less than two years. This growth is attractive to investors looking to see a return on their investment.
Some investors see Polkadot as an inevitable development for cryptocurrencies. This is the next step in improving blockchain technology. This is a scalable business model with a lot of room for growth. For investors, business growth means increased value.
The risk of Polkadot
Polkadot was created by Ethereum founder Gavin Wood and launched in 2016 through a white paper. As a newer cryptocurrency, it has little to no comparable track record, making it much more risky. Other risks include:
- Prices can be highly volatile.
- Coins are not backed by tangible assets.
- Government regulation may impose restrictions on how cryptocurrencies can be used.
Who created Polkadot?
Polkadot was founded in 2016 by Gavin Wood (co-founder of Ethereum) with co-founders Peter Czaban and Robert Habermeier. It was founded by the Web3 Foundation, a Swiss foundation that promotes a fully functional and user-friendly decentralized web as an open -source project.
So I hope now you will know the benefits of Polkadot and who created Polkadot. Polkadot is still very young. If you are adventurous, your investment may pay off handsomely in the long run. But if newer, better technology emerges and surpasses Polkadot, it could also go bankrupt.
