How does Polkadot, the infrastructure of Web3, enable business development?

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Since October 2015, the world-renowned magazine “The Economist” published an article on blockchain on the cover of “The Machine of Trust”, the blockchain has entered the stage of history, and in the past 7 years, the blockchain The rapid development of the chain has become the focus of global technology venture capitalists, which has also opened up another technological competition.

Of course, after the blockchain boom in China started in 2017, in the 2019 Chairman’s speech (the Political Bureau of the CPC Central Committee conducted the 18th collective study on the current situation and trends of blockchain technology development on the afternoon of October 24). Reached its peak, but in the following years, blockchain technology itself seems to have been a little less fun, because people stopped talking purely about blockchain, and more about applications, so we are hard to hear about blockchain technology. s things.

And because of the connection between the blockchain and the token economy, it was whipped again in a red-headed document last year, so the domestic entrepreneurs are faced with the blockchain is very good, but there is no real and executable. direction, until the sudden rise of domestic digital collections, the word “blockchain” appeared in people’s field of vision again, but it became a line of small words below the application – “blockchain technical support provided by XX chain”.

Therefore, we are fortunate that the door of the times will not only be closed, but will also be opened again, just as the “Economist” once again published an article about blockchain on the cover 6 years later, but this time it was replaced by “The Promise of DeFi” Therefore, the blockchain has evolved from a technology to an application level, and perhaps no longer talking about the blockchain itself, is the moment when its application truly blooms.

How does Polkadot, the infrastructure of Web3, enable business development?

And now, we are in such a moment, so exploring the commercial applications of those blockchains and finding the direction of those blockchains that can actually be implemented and scaled have become what we need to pay attention to urgently.

Therefore, we launched the latest column ” Business in Polkadot” by the Polkadot Ecological Research Institute to explore what innovations Polkadot as a Web3 infrastructure can bring to business, and how the current Polkadot can empower business development , this issue is our opening article for everyone to enjoy.

The meaning of blockchain

Although our loyal readers already know very well what Polkadot is and are no strangers to blockchain technology, before discussing the significance of blockchain technology, we need to clarify what is blockchain technology?

Blockchain technology is a core innovative database technology that almost all Crypto will use. The core is a distributed digital ledger, which can store any type of data.
Once a consensus is reached, the data added to the block is added to the chain and synchronized in the distributed ledger through encryption technology, making it more difficult for hackers to crack or deceive the system.

Blockchain provides a distributed, decentralized, transparent, traceable and immutable transaction record architecture.Compared with traditional databases, blockchain technology has higher transaction accuracy, does not require third-party intermediaries, is exceptionally secure, and enables more efficient financial or asset transfers.

At the same time, an important innovation direction of blockchain technology is smart contracts. The use of blockchain technology and coded instructions realizes the automation of legal contracts. The use of smart contracts can minimize or eliminate the need for external third parties to verify contract performance.

Smart contracts have five distinct advantages: zero downtime, privacy, censorship resistance, guaranteed data integrity, and provides trustless computation and verifiable behavior.

Once an application’s core smart contracts are deployed on the blockchain, the entire network will always be able to serve clients who wish to participate in contract interactions. While a single DApp cannot be rejected, there is no single entity in the network that can prevent the completion of a smart contract.
While the data stored on the blockchain is indisputable, malicious actors cannot forge transactions or other data that have already been made public.

The adoption of blockchain technology has greatly optimized business processes in all walks of life, and has positive value in many fields such as supply chain monitoring, finance, real estate, medical care, and insurance.

It’s hard to predict how blockchain technology will develop in the next 10 or 20 years, but there is no doubt that, just like the advent of the Internet, blockchain technology has significantly changed the way we transact and interact in the future.

How does Polkadot, the infrastructure of Web3, enable business development?

How is the blockchain developing?

Since Satoshi Nakamoto published the “Bitcoin White Paper” in 2008, blockchain technology has gradually been recognized by the public. The characteristics of decentralization, security and open source can effectively solve the problems exposed by the current Internet. Blockchain has been in development for 14 years.

In the early stage, digital currencies like Bitcoin were the mainstream applications, and further, small-scale applications were the main application, and a series of ecological applications such as smart contracts and cross-chains were developed. Blockchain technology will become a social governance tool.

At present, the blockchain is mainly based on the construction of infrastructure platforms and development systems, and my country is also actively promoting the development and innovation of the blockchain industry. “An important breakthrough”, in 2021, the blockchain will be written into the “14th Five-Year Plan” outline to accelerate the new development of blockchain technology.

Compared with the Internet, blockchain technology has not been widely adopted, and there is still a large market in the blockchain field. However, these 14 years of exploration have also given birth to some new concepts and new ecology, such as the current NFT, Web3, DeFi, DAO, chain games, privacy computing, etc. that have attracted much attention.

What new concepts have been born in the blockchain?

DeFi

DeFi is Decentralised Finance, decentralized finance, is an open, transparent and secure peer-to-peer financial system.
The exchanges, securities regulatory commissions, banks, brokerages, and legal affairs that we know every day belong to centralized finance. When Crypto becomes more and more popular, people hope to decentralize financial transactions through blockchain technology. Solve the problems of high transaction costs, complex transactions and low efficiency in centralized finance.

For example, Acala is the Polkadot ecological financial center and the world’s first decentralized open financial alliance. It has the characteristics of high resilience and no fork upgrade, and provides power for connecting different blockchains.

NFT

NFT is Non-Fungible Tokens, non-fungible/non-fungible token, which is different from Bitcoin and other homogenous tokens. Any NFT is irreplaceable and inseparable, such as the national treasure-level cultural relic “Shanghe River during Qingming Festival” Figure”, another example is the ownership of a piece of land.

When you own an NFT, it also means that you have the ownership and right to use it, and it is also a digital asset that can be traded. It can be a painting, an avatar, or even a game item, but The way NFTs exist is invisible.

For example, the blockchain game development platform Enjin announced that its NFT blockchain Efinity was officially launched on Polkadot as a parachain. Efinity will provide greater scalability for the ever-expanding NFT participants and is based on a new token standard Provide cross-chain function for NFT.

Web3

Web3, also known as Web3.0, also represents the next generation of the Internet. It was proposed by Gavin Wood, co-founder of Ethereum and founder of Polkadot in 2014.

In the course of the development of the Internet, the roles and functions of users are constantly changing.
In Web1, users can only passively receive the content presented in the network; in Web2, users can participate in the Internet and create content. We are currently in the era of Web2.

With Web3, users will be able to have more control over their digital identity and data, and Web3 is also a decentralized Internet based on blockchain technology.

Gavin, as the proposer of the Web3 concept, is also the founder of Polkadot. The vision of the Polkadot network is to become the infrastructure of the Web3 decentralized network, enabling everyone to seamlessly and trustlessly connect to any service in the network. And can carry on the transmission and interaction of data and information.

How does Polkadot, the infrastructure of Web3, enable business development?

DAO

DAO, the full name is Decentralized Autonomous Organizationd, is a decentralized autonomous organization.
DAO is a brand-new human organization collaboration method based on blockchain technology. The teams in the organization will have a common goal or consensus, and the democratic voting mechanism The system behavior of co-creation, co-construction, co-governance and sharing generated under the

In traditional organizations, it is the board of directors or top management who make decisions on how the entire organization operates. The biggest feature of DAO is decentralization, that is, the organization is not managed by any individual or entity. Rules and governance are formed through blockchain technology and smart contracts, and any DAO member can participate in decision-making.

For example, SubDAO, a multi-chain DAO protocol, allows any decentralized organization to quickly create and manage DAO. As a basic tool for DAO, it can develop a series of tools for the community to use DAO governance. SubDAO hopes to make everything open and transparent, and is committed to Become the entrance of Web3.0.

Chain Tour

Chain Games is also called GameFi, that is, blockchain games. It can be simply understood as the application of blockchain technology to games. The biggest feature of Chain Games is the P2E (Play to earn) model, which means earning while playing.

Chain Games can not only experience the fun of the game, but also make money in the game. With blockchain technology, players can monetize all props, characters, and virtual assets in the game. Let players own their personal assets in the game, and trade them in the game for income.

For example, Bit.Country is a platform that allows users to create Metaverses and games, and also gives users the opportunity to earn income. Users can build their own personalized Metaverse in the world of Bit.Country, with their own land, autonomy, markets and even community tokens.

other

In addition to the above-mentioned new concepts, there are many project categories in the blockchain field that have never been seen before, such as decentralized privacy protection born to solve privacy and security issues in traditional networks. KILT Protocol is a good example. Has collaborated with many top projects in the Kusama and Polkadot ecosystems.

KILT is an open source blockchain protocol that substitutes the traditional trust process of real-world verifiable credentials into the digital world through zero-knowledge proof technology, while ensuring the privacy and ownership of users’ data, and is committed to creating a unique “trust economic market”. “.

Polkadot’s role in the development of blockchain

Although the development of the blockchain industry is not bad, there are still many problems that need to be solved urgently.

Information island problem

Nowadays, major public chains and many emerging public chains have their own ecosystems, but the assets and data of these public chains are not well connected. This is like a well-developed city without traffic between them. The big cities themselves are well developed but isolated from each other. At present, the entire blockchain industry is composed of large and small information islands.

But just as in the real world, only open trade can usher in great economic prosperity, the future of the blockchain must not be a world composed of different information islands, but a world that can open up all the islands to form a big one that can link all the information islands. Network, this is exactly the role that Polkadot plays.

At the beginning of its design, Polkadot did not position itself as a general smart contract platform public chain. Its founder, Gavin, looked further. He was thinking about what the future blockchain will look like and what the industry needs. innovation to break the existing shackles.

Therefore, what Dr. Gavin considers is to make the blockchain technology more abstract and general, and make it a protocol that can carry other protocols, that is, a meta-protocol, and this is Polkadot, a lower-level one that can link all blockchains infrastructure.

How does Polkadot, the infrastructure of Web3, enable business development?

Speed ​​up chain building

The current emerging public chains often have relatively high performance, but they are still inseparable from the framework of Ethereum, that is, all applications on this chain occupy the TPS of this chain.
Therefore, one DApp and one chain is what many blockchain teams expect, that is, there is an exclusive public chain belonging to its own project that can only run its own project without being affected by other applications.

But in the past, it was very difficult to develop a blockchain and the development cycle was very long, so such a desire was a bit far-fetched for these teams.

However, now with Polkadot and the Substrate framework behind it, using this framework to develop a parachain can be done by only one person in fifteen minutes if you are skilled.
And this development difficulty is not high. The difficulty of using the Substrate framework to make a chain is compared with other blockchain development: chain development > Layer2 development > Substrate development > smart contract development, which greatly reduces the development cost and cost of blockchain development. time consuming.

When Polkadot and the Substrate framework become more popular, there will be a hundred schools of thought contending in the blockchain, just like the earliest computers were very large and could only be used for the B-side, but when the micro personal computer came out, every household could use it. Computers started, and this ushered in the Internet wave that swept the traditional and capital markets.

Polkadot and the Substrate framework will also play such an important accelerator in the development of blockchain, so that blockchain development is no longer a high-tech problem, but a civilian technology that every team can use. , will usher in the real prosperity of the blockchain.

easier to iterate

If the existing blockchain needs to be upgraded and iterated, it often needs to go through a hard fork, which will cause the blockchain to encounter many problems caused by hard forks during the upgrade process, and it is also a major test of consensus. It may even be split into different projects, and the community will be divided into two, which is a big damage to the development of the blockchain.
However, due to its innovative architecture, Polkadot enables it to be upgraded without a hard fork, providing developers with a robust, safe and fast iterative system, and allowing participants of ecological projects to develop without worries and use.

Not only that, thanks to the innovative technology of the Substrate framework, when building a chain with it, you can add different functions to the chain in a modular way, making a chain as simple as assembling a computer. That’s why you can make a chain in fifteen minutes.

However, this feature also brings another feature, these chains can more easily iterate on the function. Just like the introduction of a new graphics card, we can replace the old graphics card and replace it with a new graphics card, or launch new hardware and we can directly access the existing equipment.

When some better functions or technologies appear, such as function modules that can provide privacy protection, all Substrate-based chains can be given privacy protection functions.
Or when there is a better technology than Solidity or WASM, it can also be added to the existing chain through modules.This means that these blockchains will be highly scalable, full of countless possibilities.

Of course, the significance of Polkadot to the blockchain is not limited to this. Here we are just throwing a piece of the puzzle. We will explain it to you in detail in the following articles.

The potential and application of Polkadot in business

At present, most public chains are doing the same thing, which is to make a general smart contract platform, but this situation will become that this chain can do everything, but it is not good at everything. Moreover, all applications running on this chain are not in line with development.
For example, there are too many people robbing Taobao on Double Eleven. Taobao cannot be opened, and even all other applications such as Weibo and WeChat next door cannot be opened. This kind of thing is happening on many public chains, but it is true It will not be what the future blockchain development will look like.

How does Polkadot, the infrastructure of Web3, enable business development?

Polkadot adopts a unique heterogeneous sharding architecture, which enables Polkadot to achieve scale through parachains, splitting the work of an original network into several 100 different networks to run in parallel. It does not affect, this method is suitable for the current commercial use.

At the same time, each parachain can do a professional field and handle specialized work. For example, a certain chain only handles game projects, a certain chain only handles DeFi traffic, and even a certain chain can be used exclusively for a certain chain. One application, one DApp and one chain.
Such a specialized way can improve the efficiency of the chain, and can dig deeper in a certain direction.

This is like urban development. In the past, our plan was to develop in a large and comprehensive direction for every city, and to have everything.
But now, in domestic urban planning, each city tends to use its own strengths to do what it is better at, and then integrate each city into an economic circle and develop collaboratively, thereby increasing the speed of development and reducing a lot of internal friction.

For example, the Yangtze River Delta is a typical feature. Shanghai focuses on finance, Hangzhou focuses on science and technology, Suzhou focuses on industry, and Ningbo focuses on shipping. Each city has done more in-depth professional fields, and then their resources can be transferred to each other. It is like a professional parachain that interacts with other parachains in a cross-chain manner after being professional enough.

This is very in line with the law of business development. With the introduction of more and more blockchain solutions and applications to solve business problems, Polkadot can provide simple and convenient technical support for the development of these businesses, and provide a platform for various industries. There is a huge ecosystem of specialized businesses in all fields of the industry, helping these businesses to better expand their development space.

On the other hand, the Polkadot and Substrate frameworks are designed with modularity in mind, which provides a tool for business entities to customize their own chains.
The “customization” function brought by it is the most suitable for the needs of commercial entities, so that the function of the chain can be adjusted arbitrarily according to its own business logic, and can be increased or decreased at will, and finally achieve the desired effect.

Moreover, Polkadot paid great attention to some necessary conditions for the combination of blockchain and commercial implementation when designing, that is, Polkadot, as the underlying infrastructure, will not be mixed between these parallel chains and users, and users may not understand and With Polkadot, you only need to focus on understanding the business logic of these parachains to use decentralized applications.

Only by achieving such an effect can we usher in the mainstream popularity of blockchain technology and enable blockchain technology to achieve the goal of supporting large-scale commercial use. Only in this way can we usher in the Web3 era earlier.

postscript

Of course, the recent remarks about Web3 have suddenly become popular again, and Dr. Gavin, who proposed the concept of Web3, will inevitably be mentioned in these articles or videos. Of course, the description of the creation of Polkadot will naturally be among them. It seems that this occupy The Web3 leader with first-mover advantage has still become a topic that people cannot avoid.

Therefore, when we talk about blockchain applications, it may also be a “prescient” to fit a blockchain like Polkadot. We believe that people who are standing at the forefront of the times will not be a coincidence, and must have their leading advantages, but this When this advantage comes into play, it needs to be handed over to more Pathfinders.

In the past 2 years, we have spent a lot of time to introduce Polkadot’s technological leadership or its ecological prosperity, and now, with the Polkadot parachain on the right track and the update iteration of XCM, it is time Let’s explore more at the application level.
We are looking forward to seeing Polkadot in business, and we are looking forward to more companies to bring the advantages of Polkadot into play in practice. This is the meaning of blockchain and the value of Web3. Please continue to pay attention to our column. ——Business in Polkadot, we will continue to see you around.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/how-does-polkadot-the-infrastructure-of-web3-enable-business-development/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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