Despite the recent cryptocurrency crash, no one can deny that the crypto space has seen extensive growth in the past few years. We’ve seen the launch of many digital tokens — with some coins having greater potential than others.
Many investors rightly have chosen to focus on just a handful of the largest tokens. However, this sector has been down almost entirely in unison of late. For Ethereum-scaling solutions such as Polkadot (CRYPTO:DOT), this has also been the case.
That said, there’s reason why I think Polkadot could be an intriguing investment for those with a long-term investing time horizon. Let’s dive into why this scaling solution may be worth a look right now.
What’s attractive with Polkadot?
Dubbed as a next-generation blockchain, Polkadot connects multiple chains to enhance security and scalability greatly. This cryptocurrency allows developers to develop their own blockchains, referred to as parachains, that speed and scale up transactions using Polkadot’s relay.
Additionally, Polkadot spreads transactions across multiple blockchains to offer transactional scalability.
Polkadot can process over 1,000 transactions per second. With the growth of the network, the transaction speed will likely increase exponentially.
This crypto boasts of promoting a multi-chain, heterogeneous architecture which eventually results in the existence of multiple blockchains on the same relay chain. This helps strengthen Polkadot’s security safeguards and also allows unrivalled interoperability.
Project Liberty to run on Polkadot’s parachain system
Project Liberty is an initiative that has the backing of real estate billionaire Frank McCourt. It aims to disrupt the existing social media platforms. Notably, this initiative will run on Polkadot’s parachain system.
Mr. McCourt stated that the existing structure of social media is dogged by issues around user manipulation and data privacy, which regulations cannot tackle. He believed that the solution for this is DSNP (Decentralized Social Networking Protocol), a publicly owned open-source infrastructure to centre the internet on people rather than massive data-harvesting platforms.
The creator of DSNP, Braxton Woodham, stated that he believes Polkadot bears the characteristics that make it adaptable for social networking. He added that they are working at Parity Technologies along with the Polkadot team to design for latency, low-cost volatility, and scale for messaging that is essential for social networks.
Besides this, it’s worth noting that an increasing number of projects have opted for Polkadot’s parachains to build on.
Amid the broader crypto market downturn brought about by a number of systemic issues, institutional investors are turning to altcoins. And data shows that Polkadot is one of the tokens that investors are specifically betting on. Accordingly, given the catalysts with this project, Polkadot remains a top option investors may want to consider right now.