Polkadot vs Ethereum and DeFi control

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Polkadot, rivals Ethereum for control of DeFi in 2021

Polkadot is a network protocol that allows you to transfer any type of data arbitrarily, not just tokens, across any type of blockchain. This multi-chain application environment makes it possible to perform cross-chain records and calculations. Moreover, it can transfer this data across public, open, permissionless blockchains, as well as across private, permissioned blockchains, making it possible to create applications that obtain permissioned data from a private blockchain and use it on a public blockchain.

Currently, we are in a period in which bitcoin has hit record highs and many of the alternative cryptocurrencies have followed the trend, as is the case of Ethereum. In parallel, the price of Gas on the Ethereum platform has also reached record highs, in fact, many transactions were so expensive that it was economically unreasonable to carry them out.This demonstrates Ethereum's inability to offer profitable transactions to its users, especially in DeFi, at the time when they needed it most.

In contrast, the situation at Polkadot is completely different as the ecosystem is ready to start with large-scale DeFi projects in the first quarter of 2021. Both Polkadot's native cryptocurrency, DOT, and the tokens of major DeFi-specialized chains have enjoyed a huge rise in value, and all for a very simple reason - users know that DeFi transactions will not have to face such high costs that would impede profitability.

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Polkastarter $POLS: is a decentralized micro-funding platform that allows you to make and receive transactions between different blockchains, such as Ethereum. Can you imagine being able to conduct a fundraiser without having to deal with Kickstarter or Indiegogo? To give you a more accurate idea, both are crowdfunding platforms whose goal is to help entrepreneurs get the resources and community support they need to bring their ideas to reality.

However, each of them has rules and terms, being remarkable the commission charge. In the case of Kickstarter, it charges 5% of the total funds raised, applicable if you reach your fundraising goal, in addition to this, there is a payment processing fee of 3% to 5%. Indiegogo, on the other hand, charges 5% of all funds raised, regardless of whether or not you meet your final goal, in addition, it uses Stripe as its payment processor, and Stripe charges a 3% processing fee plus 30 cents for each transaction.

Red Robonomics $XRT: facilitates the internet of things and interaction between robots, through smart contracts. Obviously, there may be more futuristic projects than Robonomics, but it sets the bar high.

Exeedme $XED: is a DeFi-based project that is going to allow gamers to monetize their online gaming skills. It is the decentralized version of Twitch.

Red Paid $PAID is aimed at creating the law firms of the future, advising users who participate in DeFi. When we enjoy sustained growth, we tend to forget about certain aspects that are crucial for the long-term development of the ecosystem, such as having a specialized legal framework to facilitate the execution of operations in DeFi.

In addition to all these projects mentioned above, which will play a fundamental role in the growth of the ecosystem, some of the DeFi applications already on Polkadot are Acala, Stafi and Bitfrost. All three allow token staking in exchange for liquidity provision. Likewise, we find Equilibrium, which facilitates the creation of money markets between different blockchains. Centrifugue helps companies to finance their receivables, thus improving their operating cash flows. Zenlink is like a decentralized exchange, but with the ability to connect multiple blockchains, such as Ethereum and Bitcoin.

All these initiatives are in addition to the addition of Ethereum's large DeFi projects to the Polkadot ecosystem. It will be possible thanks to paracains such as Moonbeam. Undoubtedly, Polkadot will be the engine of DeFi development in 2021. Probably, its network capacity and governance will attract institutional investors to Decentralized Finance.



SOURCES
Images taken from lascosasdejuampa1.blogspot.com published by Juan Pablo, of free use for personal or commercial purposes.
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Cover design made with screenshots taken from my pc.
Leofinance logo taken from the community blog.
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