Why is trading suspended for dot (why is dot not rising)?

08/10/2023 15:39 • Daily Digest • 66 views

Why is trading suspended for dot? Editor’s note: This article is from BlockBeats (ID: BlockBeats), authored by 0x13, authorized for reprint by the Odaily Planet Daily.

According to Twitter user @0xc7c3, why did the native token DOT of the Polkadot ecosystem suspend trading? This is because the project has currently stopped shipping or has gone online on the testnet, which means that the official team has not yet decided when to release updates or go live again. According to a code library on dot.js, it shows “not enough time for contract deployment”, and two reasons have caused this event:

1. Due to current contract design issues, funds need to be transferred to a new wallet. However, if there are any problems with this new wallet, there may be a situation where assets cannot be retrieved, so measures must be taken to resolve these issues in order to ensure the security and stability of user accounts. (Note: Transfers started around 6 pm on April 16th)

2. The contracts running now before the upgrade is completed have not been modified.

3. The contracts currently in the testnet phase are executed through external calls and have a vulnerability that can cause system resource exhaustion. When the contract can restore normal functionality after using external software, similar problems occur, that is, funds cannot be received from other addresses on the network and the funds cannot be continued to be processed. This situation is not uncommon.

Now let’s briefly understand the reasons here. What is DOT? DOT is a network composed of multiple parallel chains, each blockchain is a main chain. Its goal is to build a bridge between different shards, allowing everyone to freely participate in the interaction between protocols. Like Ethereum, Polkadot is also a public chain that relies entirely on the Ethereum network. Its developers have been researching how to provide support for the entire cryptocurrency industry. From the development of mainstream blockchains such as Bitcoin, Ethereum Classic, and Tron, the concept of “decentralization” is very important. However, as time goes on, this consensus algorithm will become more and more complex, making it difficult for all stakeholders to reach consensus. In order to achieve this, the Polkadot Foundation proposed a privacy protection bill called “Polkadot Privacy Protection Act”, which requires that all blockchains have their own rules. The purpose of this law is to ensure that everyone’s rights are respected while safeguarding their privacy rights and control.

Why is dot not rising?

Since March of this year, the market value of DOT has been at historically low levels.

Why is it not rising? Because DOT’s token experienced a sharp drop in mid-June. At that time, the price was around 1 cent, and now it is close to around 2 RMB. But the DOT price has risen. However, it was not until the end of June that it recovered to over 1 US dollar, and the current price is about 1.5 yuan. This situation is not as interesting as it was a few days ago because there have been no fundamental changes in DOT.

So is dot really a good thing? If it really wants to decline, what is its essence? The answer may be: too slow, too long, and there are still some hidden worries.

The first is whether the price of DOT is stable.

According to Coindesk, “A vulnerability in the Ethereum 2.0 deposit contract (i.e. smart contract vulnerability) prevents validators from making effective transactions.” According to Etherscan data, there are currently more than 40,000 validators participating in it. “This is as bad as Bitcoin and ETH”-this is the most surprising “failure.” The second possibility is another reason: “When we use smart contracts, people often hand over their private keys to third parties or companies. Then this situation will occur after you transfer the funds out”, these two issues are actually because the information on the blockchain is recorded. The third possibility is that the only solution to the trust issue that the network itself cannot solve is the code, without relying on a particular organization to achieve this.

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Why is trading suspended for dot (why is dot not rising)?

Why is dot not rising?

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