A big function of any blockchain is its decentralized nature. The miners and validators within the decentralized world play an essential function.
To not overlook, the aptitude of a sequence to forestall any assault is of utmost significance. And, Polkadot appears to be main in that area.
Polkadot – the most secure chain?
Calling Polkadot the most secure chain would require detailed evaluation. But it surely definitely does have some of the distributed validator counts of a number of the most vital DeFi chains.
In accordance with a Solana evaluation from Unstoppable Finance, in relation to the Nakamoto Coefficient, Polkadot has the higher hand.
This metric mainly represents the entire variety of validators or nodes that must collude collectively as a way to decelerate or block any blockchain from functioning correctly and efficiently.
Within the case of Solana, this determine stands at 27 as the highest 27 validators are chargeable for 33% of the entire staked tokens.
Whereas within the case of Polkadot, the identical quantity is 82. Even Avalanche, some of the quickly rising DeFi chains from 2021, stood at 28.
Thus, Polkadot certainly may be the higher choice on this case. However the identical can’t be mentioned from a long-term profit-seeking buyers’ perspective.
Between November 2021 and press time, Polkadot has famous extreme drawdown of 86.05% as the value of DOT fell from $56 to $7.84.
In the previous few days, the altcoin confirmed indicators of restoration. DOT elevated by 17% within the final seven days.
This means that buyers who’ve been part of the community since final yr are at an absolute loss in the meanwhile.
Nonetheless, for short-term buyers, this can be a superb alternative as DOT is simply rising from its lows.
The chance-adjusted return on the asset represented because the Sharpe Ratio was additionally exhibiting passable readings at press time. The metric was sitting at a four-month excessive of two.03.
Moreover, at press time, the Relative Energy Index (RSI) was additionally sustaining its bullish rise
This underlines the truth that going ahead, value falls might be minimal. (ref. Polkadot value motion picture).