Polkadot parachains offer developers freedom from Ethereum, says CEO Gavin Wood
- Gavin Wood, CEO of Polkadot, believes that projects on Ethereum face economic constraints, unlike on Parachains.
- Polkadot’s free application execution model offers equal opportunity to protocols that launch on Parachains.
- Parachain auctions have reduced the circulating supply of Polkadot tokens, driving DOT prices higher.
Polkadot’s Parachains offers projects a free execution model on its network, offering freedom from economic constraints. The first Parachain auction has ended, and the reduction in DOT supply is expected to drive the token’s price higher.
Polkadot makes strides in Parachain race after concluding the first auction
Polkadot recently concluded the auction for its first Parachain slot, where Acala, a DeFi liquidity hub, won. Gavin Wood, CEO and creator of Polkadot, believes that the Parachain lease economic model does not need users to buy a platform token or learn more about the DOT framework.
On the Ethereum network, developers are expected to utilize the native token ETH. The Ethereum network’s transaction fees are relatively high, driving projects to alternatives like Cardano and Polkadot.
Wood was quoted as saying:
Users of applications built on Ethereum are enslaved by it economically. These users must own Ether on Ethereum and often some other token that allows them to use any application built using Ethereum smart contracts. This is a huge limitation.
Polkadot’s circulating supply has dropped with the rise in the percentage of staked DOT in Parachain auctions. Historically, this positively impacts DOT price.
Brad Laurie, a cryptocurrency analyst and YouTuber, is bullish on Polkadot. Laurie considers DOT superior to Bitcoin and Ethereum.
.@coinbase gets why @Polkadot is such an important tech eco!
— Brad Laurie (@Brad_Laurie) November 21, 2021
"The $DOT protocol is designed to allow unrelated #blockchains to securely interact, so that value or data can flow between, say, the #Ethereum & #Bitcoin blockchains without any intermediary"https://t.co/p1qCDCbZDV pic.twitter.com/d9PaRU0BtD
Cryptocurrency analysts at the YouTube channel “unisonfinance” have set a target of $50 for DOT price. The analysts have evaluated the DOT price trend and are bullish on the altcoin. The next target above $50 is $70 in Q1 2022.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
