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. 

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. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Decentraland price not out of the woods yet, MANA bears prepare for 28% decline

Decentraland price could be headed for a further decline as MANA continues to drop toward the bearish target projected by a pessimistic chart pattern. The token is at risk of a 28% plunge.

More Decentraland news

Ethereum shifts away from ETH 2.0

Ethereum will be moving away from ETH 1.0 and ETH 2.0 as the protocol undergoes significant changes. Core developers on the network are referring to the stages on the blockchain as the “execution layer” and “consensus layer.”

More Ethereum news

Bitcoin finds buyers despite new six-month and 2022 lows, BTC relief rally on deck

Bitcoin price action on Monday was mainly in a full-blown bear attack, with a new 2022 and six-month lows hit. That all changed near the end of the NY equity market session when buyers poured in to rally Bitcoin higher to close in the green for the second day in a row.

More Bitcoin news

Binance Coin bulls may take over as BNB finds support at $350

Binance Coin price has fallen more than 31% since last Monday and over 51% from the all-time high. A deeper push lower is likely if the bulls fail to keep Binance Coin above its final support zone. New 2022 and seven-month lows are coming up.

More Polkadot news

Bitcoin: BTC may capitulate to $30,000

Bitcoin price has dropped considerably over the last three weeks. The recent downswing has made things worse for BTC and hints that a steep correction could be on its way.

Read full analysis