Polkadot users would not need DOT in order to exist on-chain nor to pay fees
Ethereum competitor blockchain network, Polkadot is known for its vision of achieving blockchain interoperability.
The Polkadot chain does not natively support assets beyond DOT, the network’s native token.
A referendum is working towards supporting other assets too.
This functionality exists in Statemint parachains. And the Referendum 46, if passed, will upgrade the Shell parachain to Statemint on Friday, December 16.
As per Polkadot wiki, beyond supporting assets, Statemint provides several benefits to infrastructure providers and users:
- Support for on-chain assets.
- Significantly lower transaction fees (about 1/10) than the Relay Chain.
- Significantly lower deposits (1/10) than the Relay Chain. This includes the existential deposit and deposits for proxy/multi-sig operations.
- Ability to pay transaction fees in certain assets. As in, accounts would not need DOT in order to exist on-chain nor to pay fees.
Statemint also provides an interface for creating, managing, and using both Fungible and Non-fungible Tokens. Its fungible interface is similar to the ERC-20 standard of the Ethereum network.
Moreover, as mentioned above that users could pay through assets other than DOT, users could pay through other cryptos or might even fiat.
This news could not stop DOT from descending further. At the time of press DOT posted a red candle as it was trading for 24.6 USDT on Binance.
Cryptocurrencies may become interoperable in future. This will create further competition as the users will have the luxury of choices. The ‘natural selection’ by the users will also weed out the inefficient players in the industry. Ultimately, the ‘fittest’ blockchains will survive.
Could this upgrade mean that Central Bank Digital Currency (CBDC) might get integrated with the Polkadot blockchain, providing seamless fiat-to-crypto and crypto-to-fiat transfers? Comment below.
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