This is another brand new milestone for the whole Polka ecology.
From Rococo to Kusama and now the eagerly awaited first parallel chain auction crowdfunding, the blueprint of Poca ecology is being realized step by step. Born in 2016 as the king of cross-chains, Poca technically uses technologies such as sharding and parallelization to try to cope with the problems of congestion and high Gas fees of ethereum. The mechanism of sharding and parallelization can support the interlinking of different blockchains and realize cross-chain interaction, thus solving the problem that data from different blockchains have been incompatible with each other and information is isolated from each other. However, the final realization of Poca’s main network has to go through numerous experiments, tests and a series of innovative reforms corresponding to the current situation.
At this stage, Kusama is definitely the hot spot in the market. Since Kusama first went online, it has outperformed the main network in all aspects, the most intuitive of which are KSM and DOT, the two major boka eco-tokens.
The red-rooted boca token DOT, after hitting $49, has been gaining nearly 10 times since the beginning of the year, and has fallen back to 5 times according to the current price; while KSM has surged from $50 to a record high of $625, with a yield of 12.5 times, and despite a big pullback some time ago, it is still gaining more than 8 times. This is not without some community members saying, “With the current situation, KSM is the real ‘boca token’, and it will depend on the public consensus as to whether DOT will make a push subsequently.” PeachTree, a senior investor in the industry, said that if money is tight, it will bet on Kusama appreciation instead of boca.
In this view, there are still many people who are more optimistic about KSM than DOT, so will KSM “take over” in the future and become a real “boca token”?
Let’s take a look at the value of Kusama and boca.
Kusama is making a splash, but Boca is not moving
At the beginning, the market’s positioning of Kusama is limited to the test network of Polkadot. The route upgrade, on-chain governance and parallel chain experiment of Polkadot’s main network will be carried out on Kusama first, and after Kusama runs smoothly, it will be officially run on Polkadot. In other words, Kusama is a bridge to pave the way for the success of Polkadot’s main network in the future. However, with the increasingly excellent performance of Kusama, many investors have already switched their positions to Kusama and heavily repositioned KSM.
The value of KSM is mainly supported by two aspects, firstly, its status as a first mover in polka, and secondly, its own public chain property, which means that Kusama is already a real and properly functioning blockchain network at present.
Another real value support in Kusama is Expect Chaos.
Expect Chaos means that Kusama can try any possibility, and if it can be proven to be valuable in the end, it will be deployed to Polkadot’s mainnet afterwards. This means that on Kusama, one can boldly experiment with innovation, and the features that can be deployed on other public chains can also be deployed on Kusama. What’s more, project parties that fail to successfully bid for slots can choose to access the network of project parties that successfully bid for slots in order to achieve cross-chain, or access the system parallel chain, thus expanding the application space of Kusama.
Look at the economic model of KSM again.
First of all, investors buy KSM tokens from outside, driving up the cost of parallel chain rentals, which inevitably some technology-focused and capital-poor projects cannot afford to pay, thus leading to a smaller demand, and KSM holders are no longer incentivized, which leads to a price drop, and thus the cost of rentals will also drop. KSM application scenarios include participation in on-chain proposals, voting and other governance actions; pledging KSM, participating in network operation and maintenance, becoming verifiers, nominators and proofreaders; using KSM to bid for slots; and transferring payments.
In terms of market capitalization, projects connected to Kusama have been compared to those connected to Poca, and the economic cost required is a full seven times lower, making Kusama undoubtedly a boon for many projects without a backend background. The smaller market cap projects will flock to Kusama to experiment, but most likely will never connect to Boca afterwards. After all, the cost differential is already in sight.
However, there is also a lot of speculation from investors that later Poca may split the test network Kusama in order to fully develop Poca, thus ensuring the full coverage of Poca’s main network. However, the official answer to such speculation has been given long ago. Poca officials have made it clear that Kusama will continue to exist for a long time, not only for Poca’s testing, but also to provide a real environment for testing and rehearsal of various ecological projects that try to access Poca’s network in the future.
Although the official statement is a strong reassurance to investors, the performance of Kusama at this stage is likely to threaten the position of Poca’s main network in the future, and it is still a question mark whether Poca will “unload and kill the donkey” then.
KSM VS DOT, who is the real Poca mainstay?
For most project parties, getting their hands on DOT is their priority ticket to the boca slot auction.
Polka was launched in 2016, and the main online process was not officially opened until May last year, but so far it cannot assume and run any functions, and is still in the “unavailable” state.
In addition, due to the limitation of the network, the number of slots is limited, and the only way to get them is through bidding, and the bidding is done in two weeks, so the importance of the auction of slots can be imagined for those projects that have been waiting for Boca for a long time.
So, if slots are not auctioned, Polka is not a fully functional public chain. In contrast, Kusama, which has been perfected so far, and its main theory of infinite tastability experiments, are more friendly to most projects.
The Poca community has stated that as Poca is further developed, its strengths and weaknesses will be shown to a greater extent. Feng Feng, the blockchain development engineer of Poca technical ambassador, has also said when he was a guest at the Blue Shell LBank Tea Party, “Poca is the infrastructure of linking blockchain, it realizes the interconnection of ten thousand chains, and in the world of web3.0, Poca, as the infrastructure of this world, is definitely an indispensable link.”
With this in mind, Poca, if successfully launched, could have a disruptive impact on the entire market, but the presence of Kusama is also a major resistance to Poca’s full-scale expansion.
According to a large KSM position, the eventual market value of KSM is going to be to one-fifth or even one-half of DOT’s market value, because most projects will choose to stay in Kusama because the economic cost of Boca is too high. of course, some people question this, arguing that Kusama is still essentially an imitation chain of Boca, and from past history, the end result of the imitation chain is silent and gradually goes to zero.
KSM for farmers, DOT for landlords
In fact, from the price performance of KSM and DOT in various periods, we can see that although KSM maintains a close correlation with DOT, its performance is still better than DOT. from the end of February to the end of March this year, for example, the KSM in the same period rose nearly 10 times, while DOT is still in a sideways period. Of course, this situation is partly due to the fact that Poca’s main network has not really started yet, while Kusama’s test network is making a lot of progress.
In terms of Kusama and Boka itself, Boka is really not suitable for some small cost operation projects, on the contrary, the economic cost of Kusama is really suitable for them to make a big move, and for these investors who are deeply rooted in Kusama, KSM is the “real Boka token” in their eyes.
If the Kusama test network progresses successfully, it will be a boost and pressure for the official launch of the main boca network, but if the test network fails, the main online is even more remote. At present, the first public interest parallel chain of Kusama test network is officially connected, and we are looking forward to more progress of Poka ecology.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/ksm-frontrunners-when-will-dot-strike/
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