Coin Vs. Coin: DOT/AVAX
Polkadot and Avalanche are two major smart contract blockchains that host numerous Dapps and DeFi systems. Both blockchains appeal to investors primarily because of their broad underlying application in the marketplace. Their advanced interoperability is attractive to developers because they each support scalability and accelerate transactions quickly.
What is Polkadot?
Polkadot (DOT) is an open source blockchain that supports a nexus of other parachains and cross-chains. The framework that comprises the nexus is called Substrate. Because of its multi-layered network of blockchains under its mainchain, Polkadot is considered the “blockchain of blockchains.”
Polkadot uses a Nominated Proof-of-Stake (NPoS) consensus mechanism which maximizes chain security through the roles of validators and nominators. Moreover, it also foments greater ease and efficiency in addressing the Byzantine Generals’ Problem, achieving consensus from a variety of disparate nodes that have no central communication hub.
The network uses parachains and relay chains which shard (bundle) different pieces of information from the blockchain. The speed and efficiency make Polkadot highly scalable and it is an attractive option for many developers.
As for its altcoin, DOT has lost approximately 80% throughout 2022, falling from a high of $30.50 in early January to $6.51 as of writing. Despite the heavy losses this year, DOT has continued to make partnerships with large brands and integrate its blockchain into the mainstream. DOT is not capped and has a circulating supply of 1.12 billion.
What is Avalanche?
Avalanche (AVAX) is considered the premier scaling solution for Dapps. It is arguably the easiest blockchain for users to build on. Its smart contracts are programmable and Ethereum dApps are compatible with Solidity, the most popular programming language in web3.
Avalanche holds the record for being the fastest translation-verifying blockchain; transactions are confirmed by the thousands within seconds of execution.
Avalanche is also known for being inclusive and welcoming to entrepreneurs who are not as tech-savvy as web3 developers. Ava Labs, the company’s creative department, works to market the Avalanche brand to many different industry sectors to expand the power of web3.
Back in June, Avalanche’s Director of Creative, Kitty Grier, spoke with BCCN3 about the company’s outreach efforts through Ava Labs to bring more people into web3 and benefit from its capabilities. You can listen to our podcast interview with Kitty Grier here.
As for its governance token, AVAX, it has been hit hard by the crypto crash. Trading at around $17 as of writing, AVAX has lost 75% since January 2022. AVAX is capped at 720 million.
Similarities
Primary use cases
Both Polkadot and Avalanche were launched as solutions to Ethereum’s growing lack of interoperability between Layer 1 and Layer 2 blockchains.
Underlying technologies
Each of these mainchains utilizes an underlying nexus of parachains and Layer 2 technologies to enhance interoperability while keeping them decentralized.
Programmability and flexibility
Polkadot and Avalanche are premier blockchains, addressing the challenges that their predecessors faced with programmable smart contracts that can flex as projects change and scale as they grow.
Differences
Solutions provided
Avalanche was primarily built to alleviate network congestion and ease developer onboarding.
Polkadot was originally built as a market alternative to Ethereum.
Cost structure
Polkadot’s cost structure allows dApps to run off-chain through bridges and parathreads on a pay-as-you-go pricing model.
Avalanche has a customizable pricing structure
Branding and marketing
Polkadot has largely been adopted by major brands and corporations.
Avalanche is largely adopted by individuals and small businesses.
Final Analysis
Polkadot and Avalanche are first-in-class when it comes to bringing web3 to the masses and giving developers a fighting chance to succeed in the market. They each have their own fantastic value-adds for blockchain developers, entrepreneurs, and digital artists.
For beginners who want to learn more about web3 and experiment with different projects, Avalanche would be the best choice. For projects that are more complex and need more advanced operations to integrate into the marketplace, Polkadot is the better choice.
In examining the depth and complexity of each of the blockchains, it is impossible to overstate how far Polkadot and Avalanche have advanced web3. The possibilities with decentralized technology are endless and both of these blockchains are just getting started.