Cryptocurrency startup Polkadot (DOT), which was developed by Gavin Wood, the co-founder of Ethereum (ETH), is reportedly planning to raise $60 million through an initial coin offering (ICO).
According to the Wall Street Journal (WSJ), the successful completion of the Polkadot ICO could potentially generate $1.2 billion, an amount which accounts for the value of all Polkadot tokens in circulation and those which will be issued at a later point.
Polkadot Raised $144 Million In An Earlier Token Sale
As a joint initiative supported by Parity Technologies (a “core blockchain infrastructure” firm) and the Switzerland-based Web3 foundation (an organization focused on improving online data and identity management), Polkadot will address current challenges with blockchain interoperability. Specifically, Polkadot’s developers aim to improve compatibility between the Bitcoin (BTC) blockchain network and other major cryptocurrency platforms.
Ryan Zurrer, the director at the Web3 foundation and partner at Polychain Capital, revealed that Polkadot’s platform is expected to launch during Q3 2019. In October 2017, Polkadot’s founders had managed to raise $144 million via the startup’s first token sale. The initial funding round was led by Polychain Capital, Pantera Capital, and Boost VC, a San Francisco-based financial services and VC firm.
As CryptoGlobe reported in June 2018, blockchain interoperability projects Metronome and Cosmos announced they reached key “development milestones.” At the time, Lucas Nuzzi, a technical analyst at Digital Asset Research, had said:
We are very close to achieving interoperable blockchains, and this has the potential of changing the entire cryptocurrency market.
Interoperable Blockchains Could Make Cryptocurrencies More Valuable
According to Nuzzi, the development of interoperable blockchains could help launch numerous high-performance blockchain-enabled apps. He also said interoperable blockchains might increase the value of digital currencies as more individuals and business owners would adopt them.
Zaki Manian, the executive director at Trusted IoT, a company creating blockchain infrastructure for the internet of things, stated in a recent AMA session hosted by TruStory founder Preethi Kasireddy:
The best thing about Polkadot and Cosmos is that we are both putting out building blocks where the only use is not the overall Cosmos or Polkadot vision, but there are multiple uses for both.
Metronome Tokens To Help Trade Different Cryptos
Notably, Manian’s comments were in reference to his contributions and involvement with the development of a secure proof-of-stake (PoS) protocol for the Cosmos platform. One of the main design goals for interoperable blockchains is to allow different tokens to be traded more efficiently. For instance, transaction fees could potentially be significantly reduced, or even eliminated should blockchain interoperability technology improve.
In order to facilitate transfers between two different blockchains (without using a centralized exchange), the “built-to-last” cryptocurrency Metronome (MET) will allow users to transfer their native MET coins from the Ethereum blockchain to the Ethereum Classic (ETC), Qtum, and Rootstock blockchains.