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Polkadot, a heterogeneous multi-chain protocol, has recently undergone significant changes. Following a successful referendum, the Bridge Hub, a critical tool for blockchain interoperability within the Polkadot ecosystem, has been upgraded to runtime v9420.
As the primary facilitator for asset, message, and data transfers among different blockchains, the Bridge Hub greatly augments Polkadot's network functionality.
Runtime Upgrade Marks Major Step for Interoperability
By making transactions and data from one blockchain accessible and usable by others within the Polkadot ecosystem, the Bridge Hub promotes cross-chain capabilities. It fosters compatibility and collaboration across various blockchain projects, significantly augmenting the scope and potential of Polkadot's network.
However, the impact of these changes on user acquisition remains to be seen. The success of upcoming referendums will be key in determining whether this protocol can achieve sustained growth moving forward.
Despite the potential uncertainty, Polkadot's high staking reward ratio might attract users. Blockchain data indicates that $DOT, Polkadot's native token, has outperformed other cryptocurrencies in terms of staking rewards, boasting a reward rate of 14.54% for staking DOT.
Interestingly, interest in DOT staking has waned somewhat, as evidenced by a 0.35% decrease in the number of stakers on the Polkadot network, according to Staking Rewards’ data.
Impact and Implications of Runtime v9420
Delving deeper into the specifics of the Bridge Hub upgrade, it was a referendum to transition the Bridge Hub from v9382 to v9420. The prior call for this change failed because the Bridge Hub, operating on v9382 and therefore on XCM v3, expected an UnpaidExecution instruction before the Transact instruction, which Polkadot (on v9370 and XCM v2) could not provide.
Now that Polkadot has shifted to XCM v3, the correct XCM program has become possible. The call to execute on the Relay Chain is a Whitelist Call.
The weight parameters for this call, which influenced the Transact parameters, were as follows:
These technical developments reflect Polkadot's commitment to continuous improvement and optimization of its multi-chain interoperability. With these changes, we may see an influx of new users, increased staking, or an improved general market sentiment toward $DOT in the coming weeks.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.