Polkadot To Increase Parachains By 10X, Will This Support Free-Falling DOT?

Dalmas Ngetich

1 year ago

3 mins read

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Polkadot, a platform aiming to drive blockchain interoperability, wants to increase the number of parachains from 100 to 1,000 in a planned upgrade. The network, which remains one of the most valuable by market cap, has, like most layer 1 networks, suffered from dropping user activity over the past months.

DOT Is Down Over 90%

The dip follows the crypto winter in 2022. However, the upcoming upgrade might catalyze demand, even supporting DOT, the native currency.

DOT is changing hands at $4 at spot rates, down by over 90% when prices soared to as high as $55 in the last bull market. Even though the contraction has significantly impacted prices, other altcoins, including Solana and Algorand, suffered the same fate.

Polkadot price on September 22| Source: DOTUSDT on Binance, TradingView

Even so, with the Asynchronous backing update, whether DOT will find support is yet to be seen. The reveal on September 21 didn’t move DOT, and the coin is edging lower, towards 2023 lows.

Polkadot developers are now setting their eyes on Asynchronous backing. Sophia Gold, the Engineering Lead at Parity Technologies, said the update is “the most significant evolution of parachain consensus since we launched parachains almost two years ago.”

Their goal is to increase the number of parachains to 1,000 by the end of 2024, effectively boosting the network’s transaction processing speeds to over 1 million.

Asynchronous backing enables flexible scheduling for our future scaling work through elastic scaling and instantaneous core time. We have a credible roadmap to get Polkadot to support 1,000 parachains and 1m+ transactions per second. The design is there – we know how to scale Polkadot for the indefinite future.

The Asynchronous Backing: What It Means For Polkadot

With this update, Polkadot is introducing a feature called “pipelining.” This means multiple parachain blocks can be processed simultaneously instead of waiting for one block to be fully validated and included on the relay chain before moving on to the next one.

Accordingly, Polkadot would process more transactions every second at any instance, effectively scaling the network without relying on layer-2 solutions common in Ethereum or Bitcoin, for example. Since “pipelining” will enhance throughput, Polkadot will have a higher capacity. For this reason, the developer plans to half blockchain validation time from 12 to 6 seconds.

A key feature about Asynchronous backing is that any parachain block that fails to be added to the “relay chain” on the first attempt can be reused. Developers note that this will significantly improve network efficiency due to reduced wastage.

It is the combination of pipelining and reusing of parachain blocks that Polkadot developers say opens the door for the number of Parachains to be increased from the current 100 to 1,000. With enhanced on-chain scalability, running more parachains can be more feasible.

Feature image from Canva, chart from TradingView

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.

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