Why is Polkadot so popular (Is Polkadot a pyramid scheme)?

08/18/2023 09:20 • Crypto & Markets • 52 views

Why is Polkadot so popular? What’s the deal with Polkadot?

1. What is Polkadot?

2. Various functionalities in the Polkadot network including cross-chain interoperability, multi-asset collateral, and decentralized storage.

3. How do the governance mechanism and technical characteristics of Polkadot affect user adoption?

4. How is the security of blockchain protected?

5. What is the relationship between scalability and performance in blockchain?

6. Why does Polkadot have such market value?

Is Polkadot a pyramid scheme?

Is Polkadot a pyramid scheme? What exactly is it, and does it involve any scams?

In the blockchain investment market, there is a phenomenon called “Polkadot.” This project, named Polkadot, is a decentralized financial platform founded by well-known Polkadot development team Gavin Wood and Gavin Andresen in 2014. It is said that Gavin had previously promoted the project’s token DOT to investors. “I think it was a marketing campaign, but if someone influential said it, they would give such information.” These users are called “Polkadot fans” who hope to get high returns before participating in this technology. However, it is not the case. “Polkadot is a project that comes with user traffic” because “the Polkadot network has more than 100 million users, and its ecosystem construction surpasses any other blockchain network.”

From early 2013, Kusama has been conducting various tests and verification work. However, due to improper code writing, there were many transaction failures, inability to use the main network and smart contracts, etc., which triggered controversies over the security issues of Kusama’s network. At the end of 2018, Upbit, the largest cryptocurrency exchange in South Korea, also ceased operations and released an ICO project related to Polkadot. After June 28, 2019, the Polkadot Foundation officially announced its withdrawal from the community, and Kusama became one of the first fully community-controlled companies in the world. At the end of 2020, the Polkadot official also stated that it will support the chain upgrade plan on Kusama and governance proposals on Kusama through Kusama tokens. Currently, multiple parallel chain auctions are being applied, and it is expected to launch in July this year, when all parallel threads will go live.

In addition, according to CoinMarketCap data, Polkadot ranked 11th in market capitalization in 2019. Other public chains with high market capitalization include Cardano (ADA), Solana (SOL), and Tezos (XTZ).

It is worth noting that Polkadot does not provide any utility and can even be used for payments in some aspects. Therefore, people may not know whether it is a pyramid scheme or not. Instead, they are more concerned about how to make more people aware of what a “pyramid scheme” is.

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Why is Polkadot so popular (Is Polkadot a pyramid scheme)?

Is Polkadot a pyramid scheme?

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