|

Polkadot eyes double-digit gains, announces 1000x increase in speed

  • Polkadot released a roadmap announcing the launch of Parathreads in the first quarter of 2023. 
  • The project boosts block space and execution time for Parachains – blockchains that communicate with the main Polkadot ecosystem. 
  • Polkadot yielded double-digit gains for holders overnight after the announcement of its latest roadmap.

Polkadot announced its roadmap outlining key updates and launches scheduled for the next few quarters. The announcement led to a strong rebound in DOT price and analysts retain a bullish outlook for Polkadot price. 

Also read: JUST IN: Bitcoin price breaks $20,000, bears hit by pain of $45.5 million liquidations

Polkadot eyes 100 to 1,000 times increase in transaction speed

Polkadot has announced its plan for asynchronous backing, a technique that allows parachains – layer 1 blockchains within the Polkadot ecosystem – to build blocks concurrently with the main Polkadot relay chain. The project is focused on connecting and improving communication between the different blockchains within the Polkadot ecosystem. Through the proposed connection, parallel chains can be linked and they can exchange value via relay chains. 

This will allow Polkadot to boost its transaction speed to 100,000 to 1,000,000 transactions per second (TPS), as opposed to the current speed of 1,000 TPS. 

Further, this will reduce parachain block time by half. Currently block time is 12 seconds, but there is a likelihood that it will be reduced to 6 seconds. Polkadot proposes to achieve this by increasing the amount of block space available to each block by five to ten times.

There is a massive series of upgrades related to scalability, cross-chain communication, expense calculation, governance and staking in the roadmap update, which are expected to be rolled out by the middle of 2023. 

The project's governance is likely to witness a complete overhaul and DOT developers are keen on updates in the blockchain ecosystem. Projects in the category of partial decentralization are closing and those with complete or no decentralization have become popular on Polkadot. 

The novel governance system is scheduled to be deployed on Kusama, Polkadot’s public pre-production environment, in Q4 2022. The proposal will be presented to the community and needs to be voted on and approved in the referenda queue by token holders.

Polkadot's price witnessed a spike, nearly 10% in the response to the announcement of massive developmental upgrades and the expected increase in transaction speed. 

Analysts have set a target of $9.21 for Polkadot price as the altcoin breaks into an uptrend. 

DOT-USDT price chart

DOT-USDT price chart

Author

Ekta Mourya

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.

More from Ekta Mourya
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is.  Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).

Sberbank issues Russia's first corporate loan backed by Bitcoin

Russia's largest bank Sberbank launched the country's first Bitcoin-backed corporate loan to miner Intelion Data. The pilot deal uses cryptocurrency as collateral through Sberbank's proprietary Rutoken custody solution.

Bitcoin recovers to $87,000 as retail optimism offsets steady ETF outflows

Bitcoin (BTC) trades above $88,000 at press time on Tuesday, following a rejection at $90,000 the previous day. Institutional support remains mixed amid steady outflow from US spot BTC Exchange Traded Funds (ETFs) and Strategy Inc.’s acquisition of 1,229 BTC last week.

Traders split over whether lighter’s LIT clears $3 billion FDV after launch

Lighter’s LIT token has not yet begun open trading, but the market has already drawn a sharp line around its valuation after Tuesday's airdrop.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Bitcoin: Fed delivers, yet fails to impress BTC traders

Bitcoin (BTC) continues de trade within the recent consolidation phase, hovering around $92,000 at the time of writing on Friday, as investors digest the Federal Reserve’s (Fed) cautious December rate cut and its implications for risk assets.