By 2028, predictions indicate that 100 million people will utilise blockchain on a regular basis as large financial institutions quickly adopt decentralised technologies.

According to a Cointelegraph Research research, blockchain is predicted to account for 4.3% of the payment industry by 2025, indicating a 95% growth potential.

Nevertheless, in order to realise the full potential of blockchain networks, fundamental issues must be resolved.

The two main issues with using a blockchain on its own are scalability and interoperability.

Professionals in the field stress that blockchains should be linked together rather than operating as separate entities.

Polkadot 2.0 to address the fundamental issues with blockchain

Through a network of specialised blockchains, Polkadot, an open-source multichain technology, improves cross-chain transfers of assets and data.

Key blockchain problems including interoperability, scalability, and security are intended to be resolved by Polkadot's architecture by enabling the transfer of assets and data across several blockchains

The network presents a fresh vision with Polkadot 2.0 through its parallel chains, or parachains, which allow many transactions at once.

At the heart of Polkadot 2.0 is the introduction of coretime, which is intended to adjust compute resources in real-time to better match the needs of the network.

Coretime is the availability of validator subsets as cores, or computational resources, in the Polkadot network for processing parachain blocks. Polkadot now supports fifty of these cores.

These cores manage multiple difficult jobs at the same time. Polkadot is so frequently referred to as the "Polkadot Supercomputer," indicating its collective ability to handle a wide range of activities concurrently.

A core is a cost-effective, adaptable blockchain model that gives developers access to the security and interoperability of the Polkadot network.

A core is a flexible, cost-efficient blockchain model that allows developers to access the Polkadot network’s security and interoperability on a pay-as-you-go basis without needing a dedicated parachain slot.

Smaller projects with intermittent blockchain resource needs can benefit from Polkadot’s robust ecosystem through coretimes without the cost of leasing an entire parachain, which was a requirement in Polkadot 1.0.

Besides cores, Polkadot uses a sharding mechanism that enhances scalability and increases transaction throughput.

With the ability to validate up to 20 shards per block and the potential to grow to 100 shards, Polkadot boasts a transaction speed of approximately 1 million transactions per second (TPS) with asynchronous backing, compared to Ethereum 2.0’s throughput of 100,000 TPS.

V marketplace and improved governance

The coretime marketplace in Polkadot 2.0 allows developers to purchase block time dynamically and efficiently scale their operations, matching their computational and consensus needs.

The revenue generated from these sales essentially functions as rental income.

With Polkadot 2.0’s scalability, decentralized applications (DApps) can dynamically adjust their resource usage based on demand.

DApp developers can seamlessly integrate assets and functionalities across multiple blockchains, expanding the available market and liquidity pools.

Aiming to use a deflationary mechanism, Polkadot presented a proposal to burn the revenue from coretime sales.

This decision is expected to make DOT more attractive for long-term retention, consistent with the network’s goals of improving security and efficiency across its ecosystem.