Ethereum, Cardano and Polkadot: Part 03
When listening to Gavin Wood the founder of Polkadot, we understand that Polkadot’s (DOT) key focus is on being a non-competing chain, developed to facilitate chain integrating platforms; a vast difference in comparison to Charles Hoskinson and Cardano. Eliminating the need for another long analysis, the following video easily sums up Polkadot in 7 mins.
For those interested in diving deeper into the tech aspect, you can check out the video below courtesy of the W3 summit in 2018, in which Wood creates a blockchain with a brand new MacBook Pro in under 15 mins.
In closing, I would like to touch on the Ethereum Improvement Proposal (EIP) – 1559 again – Ethereum announced that it will be packaged with the London hard fork this coming July, regardless of the mining industry’s discontent with the proposal, according to the All Core Developers call held on Friday the 5th of March. In Part 01, I indicated that Ethereum can retaliate against the mining cartels, and personally, I applaud the move. Though this may drive the value down for ETH in the short term providing that the miners launch a 51% attack, the benefits of the change will improve some of the efficiency issues they face. I’ve also found that the reason for the recent hike in gas prices for ETH is due to the fact that trading bots are preying on perceived flaws in Ethereum’s infrastructure. They have “extracted” at least $107 million in the past 30 days, according to new research. Popularly referred to as Miner Extracted Value (MEV), the arbitrage strategy sees bots identify and target trades waiting in Ethereum mempools. This is seen as another flaw which is being capitalised by miners. For a detailed description of MEV, check the explanation on Paradigm research. I am surprised that many of the crypto influencers haven’t explained this, and instead, continue to focus on the high price of ‘gas’ on Ethereum.
Based on the above research, what would you choose? My answer is simple; choose all three. If you remember my intro in Part 01, it started with a love triangle and I am firmly positioned in the middle with Ethereum, Cardano and Polkadot! Ethereum seems for now the stable investment, though it is facing a few issues, whilst Cardano and Polkadot will be my long term escape towards financial freedom.