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How Polkadot is Redefining the DeFi Landscape: A Deep Dive into Permissionless II

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  • Polkadot founder, Gavin Wood, unveils Polkadot 2.0, a plan to revamp how the network allocates its resources, focusing on a system of sovereign chains connected through “accords.”
  • Instead of the traditional slot auction model, the new framework allocates ‘core time’ via a marketplace available on-demand and long-term, creating a more agile system.

As blockchain continues to innovate, Polkadot, under the stewardship of founder Gavin Wood, is taking a quantum leap towards redefining resource allocation in the network. The initiative, suitably tagged Polkadot 2.0, aims to bring about a paradigm shift from the traditional concept of chains to a more expansive “space”.

Overhauling the Paradigm

In an address during the annual Decoded conference, Wood unveiled his vision for the ecosystem’s evolution: a network of sovereign chains interconnected by treaty-like “accords”. This transformation, he said, would be akin to a “voyage of discovery”. Wood’s experience as the co-founder of Ethereum underscores the gravity of this statement and promises a departure from the original model.

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Wood, having transitioned from CEO at Parity Technologies to the network’s chief architect, envisages a shift from the auctioning of limited parachain “slots”. In the traditional setup, projects lock up DOT, Polkadot’s native token, to lease a slot for two years. The scarcity of slots often leads to fierce competition, with only financially robust projects succeeding.

Cores, not Chains

Moving forward, Wood is championing the transition from chains to cores. He explains that Polkadot is more akin to a multicore computer with reserved cores for the parachains, a notion drawn from parallelized blockchains. The new framework would allocate “core time” via a marketplace, making it readily available for both on-demand and long-term use.

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This shift away from the slot auction model aims to dismantle the barriers it creates. Furthermore, these core time chunks, represented by NFTs, can be fractionalized, allowing owners to allocate computation on a Polkadot core. This model ensures the continued existence of existing leases while introducing bulk pricing that needs governance initiation.

Polkadot co-founder Rob Meier likens the 2.0 proposal to the allocation of cloud computing resources, and other ecosystem participants such as Francisco Agosti, CEO of Moondance Labs, express excitement about the innovation.

Application-Centric Evolution

As part of the evolution, Wood emphasizes a renewed focus on applications, which could deploy smart contracts directly on cores, possibly sidelining the parachain concept. Wood argues that for Polkadot to realize its potential, apps need to seamlessly span across chains, not only for users but ideally for developers as well. It seems, therefore, that Polkadot’s 2.0 vision, fueled by Wood’s leadership and the ecosystem’s enthusiastic reception, is set to steer the blockchain space towards uncharted territories.

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Jack Williams
Jack Williams
As a Blockchain Analyst, I specialize in analyzing the performance of decentralized systems and optimizing their efficiency. Through data analysis, I provide insights on blockchain technology, smart contracts, and cryptocurrencies to help businesses make informed decisions and improve their operations.
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