|

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:

Editor's Picks

XRP rebounds as retail demand shows signs of returning

Ripple exhibits a subtle rebound outlook, trading near $1.10 at the time of writing on Thursday. The headwinds in the crypto market are largely attributable to mounting investor uncertainty amid renewed tensions in the Middle East.

Crypto Today: Bitcoin, Ethereum, XRP rise after defending key support amid renewed Middle East tensions

Cryptocurrency prices are broadly rebounding on Thursday, following a dominant sell-off largely attributed to geopolitical tensions in the Middle East. Bitcoin has risen and trades near $63,000, while Ethereum pares losses around $1,750 as bulls aim for a short-term breakout above $1,800.

Bitcoin stalls as mixed ETF flows, renewed US-Iran tensions cap upside

Bitcoin trades at $63,000 on Thursday, recovering slightly after facing rejection near $64,000. Renewed geopolitical uncertainty has dampened risk appetite, limiting BTC upside potential.

Aptos recovery eyes a breakout rally after crucial blockchain bug fix

Aptos price is up 3% at press time on Thursday after three consecutive days of weakness earlier this week. The recovery is likely linked to a crucial blockchain bug fix that exposed its entire Total Value Locked of over $100 million at risk.

Bitcoin: Quarter-end rebalancing might fuel BTC next bullish move
Bitcoin (BTC) is up over 3% so far this week, trading above $61,800 at the time of writing on Friday after slipping to a 21-month low earlier this week. Institutional selling continued, with spot Exchange Traded Funds (ETFs) recording net outflows of over $520 million through Thursday, pointing to the eighth consecutive week of withdrawals.