According to CoinShares, the main benefit of the Polkadot Blockchain Protocol (DOT) is its “common security” and blockchain interoperability. But the protocol is still threatened by what could be seen as a lack of decentralization, according to BitGlobalOne.
CoinShares states that the “shared security” that comes from the fact that all stakeholders such as developers, investors, and team members use DOT tokens to “link” and “stake” their Parachains (other chains attached to the main network Polkadot). chain) is Polkadot’s most important power.
Forkless upgrades are also Polkadot’s strength, according to CoinShares. Instead of forking, protocol updates happen through a “simple decentralized process” by adding a proposal to a queue that is backed by token holders and voted in a referendum.
“There is no human intervention or centralization, and if the vote doesn’t pass, nothing happens,” the report states as a key feature of the non-fork upgrade system.
The CoinShares report states that interoperability is “essential and essential” to the way Polkadot is designed, with a growing number of parachains attached to the main chain. “This scalability for Parachains acts as a positive feedback loop and will only encourage further network adoption,” the report says.
CoinShares has identified two other blockchains, Cosmos (ATOM) and Avalanche (AVAX), as the biggest threats to Polkadot.
The success of Polkadot as a “full platform” will be reflected in events such as bringing more blockchains into the Polkadot ecosystem. This will lead to improvements in “interoperability, security and non-fork” for all involved blockchains, the report says.