What is Polkadot? A comparison of the Bitcoin and Ethereum blockchain

There has been a lot of blockchain project launches, with each grappling for the investors’ share. Though different, each blockchain strives to achieve one thing; becoming the decentralized finance (DeFi). So, what is Polkadot? How does it work? Read on to understand this and how Bitcoin and Ethereum work.

Understanding Polkadot and how it works

Polkadot, also known as DOT, is one of the latest cryptocurrency projects that connects multiple blockchains to become a single network. Any blockchains connecting to Polkadot are referred to as para-chains because they work correspondingly. The project creates an infrastructure for Web 3.0 to disrupt internet access and provision later. 

Polkadot creates a network that features several layers that functions on diverse principles. This blockchain deploys a sophisticated technology in connecting various networks. Polkadot comprises of the following:

• Relay chain: This is the security feature that confirms transactions done in the connected blockchains. Since it is Polkadot’s main protocol, it has an impressive functionality base that processes over 1000 transactions per second. 
• Parachains: it refers to the parallel blockchains connected to the relay chain. They are designed to solve specific challenges specifically independently. 
• Parathreads: Though they work like parachains, parathreads connect to the relay chain only when necessary (when there is no need for uninterrupted network access). 
• Bridges: This mechanism allows Polkadot networks to relay information to external networks like Bitcoin. 

Polkadot ideally solves any challenges that may arise in blockchains –it’s more of a framework. It has a smart contract mechanism that creates a platform for decentralized applications and intends to build complete blockchains that connect seamlessly.

A comparison of the Bitcoin and Ethereum blockchain

Both Ethereum and Bitcoin are decentralized platforms in blockchains fueled by ETH and BTC coins. How do they differ?

1. Goal: Ethereum and Bitcoin are intended for distinct purposes. Bitcoin intends to be globally renowned for empowering investors to be in charge of their finances through decentralization. On the other hand, Ethereum is a payment service provider in creating and executing favorable contracts. Bitcoin is a digital currency, whereas ether is a smart-contract platform that comes in handy when executing trustless transactions.
2. Purpose: Ideally, Bitcoin is a money transfer store, while Ethereum is meant for transactions that only happen following specific events. 
3. Transactions and speed: Bitcoin relays transactions exactly as processed (manually), while ether is more of an automated smart contract. Bitcoin transactions take a couple of minutes, whereas Ethereum happens in seconds. 
4. Technology: Though both Bitcoin and Ethereum are constantly undergoing software updates, the latter has the upper hand in terms of technology.

Should you Choose Ethereum or Bitcoin?

Using either platform has its benefits and downsides. Bitcoins’ supply of coins is a bit smaller but more liquid compared to Ethereum. But Ethereums infrastructure is robust with multiple applications to serve perfectly. You could opt for Ethereum if you are looking for an alternative with higher usage and purpose. On the other hand, Bitcoin would be viable for investors looking for a balanced supply of crypto. 

Conclusion

The choice of investing in Bitcoin or Ethereum is subjective because of the many distinct factors. Regardless, both are profitable, provided you know how to transact cryptocurrency. You can understand the details better by signing up on Tron to Safemoon; it has a guide and tips for beginners.