Is Polkadot the So-Called Ethereum Killer?
For years, cryptocurrency upstarts have been searching for a so-called Ethereum (CCC:ETH-USD) killer. Among the most promising candidates is Polkadot (CCC:DOT-USD) as Polkadot was designed to upgrade Ethereum and to overcome its drawbacks. Im not promising that this, or any other cryptocurrency, will actually kill Ethereum. Nor am I bearish on Ethereum in particular. Besides, the two cryptocurrencies will always have a connection. Specifically, Polkadot was launched in May of 2020 by Gavin Wood, a co-founder of Ethereum. Still, there are traders who feel that ETH-USD is pricey and DOT-USD is a cheap and interesting alternative  and after a recent price correction, its as good a time as any to start a position. Analyzing the Polkadot Price  Just for comparison, as of June 13, Ethereum was at $2,363 while Polkadot was just $20 and change. So its certainly true that DOT-USD is much more affordable on a per-token basis than ETH-USD. Plus, theres a big difference in terms of upside potential. Let me explain. Consider what would need to happen in order for Ethereum to double in price. It would have to reach $4,700  certainly a possibility, but quite a feat. Meanwhile, to double in price Polkadot would only need to get into the $40s. This isnt impossible  indeed, it already happened in April and then again in May. As recently as May 15, the buyers threatened to take out the $50 level, but then a sharp correction ensued. So, you might want to grab some DOT-USD in the $20s if you have an opportunity to do so. The Internet of Blockchains  As I alluded to earlier, Polkadot has been called an Ethereum killer, though that nickname might be an exaggeration. Within the Polkadot ecosystem, there is a relay chain, which is a central chain which provides security for the entire network. DOT-USD then uses side chains to increase the networks capacity, and these are called parachains. There are other parts of the ecosystem that help it function. For instance, the relay chain also serves as the main communication hub between parachains. Through this complex ecosystem, Polkadot enables different blockchains to seamlessly communicate with each other. Perhaps, then, the best nickname of all would be Internet of blockchains.  Thats the ultimate innovation with Polkadot: cross-chain communication and interoperability, all made possible by bringing multiple blockchains into one network. Enhanced Scalability  Weve already identified a feature of Polkadot which Ethereum doesnt have: inter-chain operability. To that, we can also add enhanced scalability. The Polkadot white paper specifically cited scalability as a failure of the currently available technology stacks:  [A] problem to be deployed on Polkadot may be substantially parallelised  scaled out  over a large number of parachains. Since all aspects of each parachain may be conducted in parallel by a different segment of the Polkadot network, the system has some ability to scale.  To put it another way, Polkadots parachains run and produce their blocks in parallel (hence the name). This feature allows the network to run quickly and smoothly. The Bottom Line  As weve discovered, Polkadot has distinct advantages over Ethereum. It enables communication between platforms that cant normally communicate, and it offers a comparatively high level of scalability. But as Ive argued, Ethereum killer might not be the best nickname. Personally, I feel that Internet of blockchains is more appropriate. In the final analysis, theres no need to get hung up on nicknames. Instead, you can take a closer look at Polkadot and consider adding it to your low-priced crypto collection. On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. David Moadel has provided compelling content  and crossed the occasional line  on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.