INTRODUCTION
In this subsection of the THORChain Coin Guide, a brief comparison of THORChain (RUNE) and Polkadot (DOT) will be presented. This presentation is not meant to be exhaustive and as always, before making any investment decision, do your own research.
COMPARING THORCHAIN AND POLKADOT
The first (and truly only) glaring comparison between THORChain (RUNE) and Polkadot (DOT) that is present is that both projects have the same objective. Both are aiming to stretch the possibilities of blockchain technology by making absolute interoperability exist between all the various blockchains. However, THORChain (RUNE) and Polkadot (DOT) are approaching this solution in different manners.
THORCHAIN (RUNE)
In essence, THORChain is a cross-chain decentralized exchange with RUNE serving as it's native token. THORChain allows it's users to swap tokens from different blockchains in their native form (without wrapping or pegging) all while maintaining an environment free from third party risk and being non-custodial in nature.
Using THORChain, a user who wants to swap let's say Ethereum for BNB (BSC) would not be forced to resort to a centralized exchange, nor would the user face the hassle of dealing with synthetic (wrapped) versions of the assets. The swap may be done on THORChain, all while sending and receiving native tokens.
How does THORChain achieve this high degree of interoperability in its ecosystem? The answer to this question lies in its use of the native RUNE token through it's vaults. Using the ETH to BNB (BSC) swap contemplated above, the transaction would be perform in the following manner. The THORChain protocol would break the transaction into two separate transactions automatically: 1.) It would first swap ETH for RUNE tokens; and, 2.) then swap RUNE tokens for BNB (BSC). By using this mechanism to conduct swaps the ability is present for THORChain to perform cross-chain swaps.
POLKADOT (DOT)
The Polkadot protocol achieves interoperability on the next level of blockchain evolution. Protocols such as Polkadot seek to provide the various different blockchain with a system by which they can communicate with one another. Polkadot is lead by Gavin Wood, who with Vitalik Buterin, were the co-creators and founders of Ethereum. Wood has set out on a course to expand on Ethereum's capabilities. How does Polkadot achieve interoperability?
The design structure of Polkadot can support hundreds of application specific blockchains in an interconnected fashion. These application specific applications in Polkadot terms are called 'parachains'. Each of these individual parachains must be built upon the Substrate framework to operate in the ecosystem. All of the independent parachains plug into a common base unit responsible for consensus and security, known as the Relaychain. Inter-chain communication and cross-chain transactions are made possible by the parachains interaction with the relaychain producing the desired degree of interoperability in this system.
CONCLUSION
As stated at the onset of this article THORChain and Polkadot share a common objective - blockchain interoperability. Their respective approach to this solution, however, is vastly different. This article attempted to demonstrate these differences in an overly simplistic fashion as to fully discuss the mechanics behind each project would require a book - for each.
Suffice it to say that an interoperable blockchain system is being presented in both these projects. And each project provides yet another piece of the puzzle in making a future fully interoperable blockchain a reality.