At the Consensus conference, Web3 Foundation CTO Joe Petrowski talked about how the Polkadot project will evolve in 2021. Decentralization is a trade-off, he said. For example, Polkadot was designed with a higher transaction load than Etherium. However, the operation of Polkadot's interconnected parachains comes with its own set of challenges.
The decentralized finance (DeFi) boom has increased the need for cheaper alternatives to Etherium. Petrowski recognizes that the next stage of building a system in which applications can interact between chains and transaction processing occurs in parallel is a step into the unknown.
Etherium can be seen as a "single-threaded blockchain," which is convenient in terms of changing states. However, this means that users are competing for synchronous execution time. This has resulted in high transaction fees. On the other hand, multi-network application technology will also have its problems.
Petrowski cited the blockchain conductor as an example. A transaction executed using an application on Etherwap, such as Uniswap, is reflected in Etherscan, which shows all the changes caused by that transaction.
By the end of this year, Polkadot developers plan to roll out all the capabilities of the network. The next stage in the development process includes the launch of parachain auctions, a fundraiser in which projects block 1 million DOT to win one of about a hundred parachain slots.
