Many investors and companies believe Polkadot (DOT) is the new Ethereum (ETH) killer. But blockchain technology experts believe these projects can coexist.
The similarities between ETH and DOT go beyond their blockchain applications. Both projects aim to help developers create decentralised applications. In addition, Gavin Wood, who started DOT, was a co-founder of Ethereum. Their differences mainly lie in their design goals. Figure out which is better to invest in by getting the lowdown on these two platforms.
Ethereum Is Large and Established
Ethereum gives developers a way to program, deploy, and test dApps through smart contracts. To clarify, these contracts manage the movement of state or native assets on the single ETH chain.
ETH went live in 2015 and has since become the most actively used blockchain. In fact, Uniswap and other Ethereum projects are currently dominating the DeFi space. As a result, most blockchain technology providers predict that it will continue its upward price trend in the coming years.
Polkadot Is Promising But Unproven
Polkadot offers developers a framework for building their own blockchain. In addition, this comes with the ability to connect different ledgers using a relay chain. So it is up to the developer to set how fast transactions go and how high fees are.
DOT came out in November 2016, and it migrated to the Mainnet in July 2020. It has since attracted hundreds of developers, such as Advanca, Akropolis, and Acala Network. Blockchain technology experts have different predictions about it. Some believe that it will dethrone ETH, while others believe it may present synergy effects.
ETH vs. DOT: Similarities
Besides giving developers a space to make decentralised applications, both ETH and DOT use smart contracts. Ethereum’s are based on Solidity, while Polkadot’s are based on Ink!
In addition, Ethereum 2.0, the second version of ETH, relies on a scaling strategy that is based parallelised execution. Similarly, Polkadot uses the same approach. ETH 2.0’s execution threads are called shards, while DOT’s are parathreads or parachains. Both projects will employ Wasm to power state transitions and on-chain logic.
Finally, Ethereum and Polkadot are two of the biggest blockchain technology platforms to date. Since January, ETH’s price jumped by 120%, reaching a total market cap of more than $180 billion. On the other hand, DOT’s price rose by more than 360% in the same period. As a result, its total market cap reached more than $34.4 billion.
ETH vs. DOT: Differences
Ethereum seeks to be a platform for smart contract deployment and distributed finance. On the other hand, Polkadot aims to help developers make complete blockchains that can be integrated together. Here is a quick rundown of the other key differences between these two projects:
- Execution Environment
- ETH: Single VM and multiple homogenous shards
- DOT: Multiple heterogenous parachains
- ETH: Off chain
- DOT: On chain
- Program Execution Fees
- ETH: Per-call or metering-based
- DOT: Per-call parathread fee or market cost for parachain slot
- Backend Development
- DOT: Rust, Substrate Framework
ETH vs DOT: Which Blockchain Platform Is Better?
It depends on your goals and application. Ethereum is the safer and recommended choice if you:
- Need interoperability with other ETH ecosystems
- Do not need complete control over your system’s economic
- Do not need a huge amount of transaction throughput
- Rely on smart contracts a lot
On the other hand, Polkadot may be the better option if you:
- Want to have full control over the economics that your app runs on
- Use cases that need a connection between blockchains
- Need a dedicated blockchain for your app
Regardless of which digital asset blockchain platform you choose, Key Coin Assets can help you make the most of it. Our blockchain experts have years of experience maximising these technologies, and we can help you take advantage of either one. Let us help you build your wealth and get ahead of your competition with our digital asset management solutions. Contact us NOW at 843-886-9547 to start investing in yourself!