Polkadot, one of the leading blockchain platforms for decentralized applications, is planning a major upgrade called Polkadot 2.0 in 2024. This upgrade aims to solve some of the limitations of the current Polkadot architecture and catalyze growth on the platform.

The current Polkadot system uses “parachains” to allocate resources to applications. However, parachains require applications to bond a large amount of DOT tokens and win an auction to get a slot. This limits the number and types of applications that can launch on Polkadot.

Polkadot 2.0 will replace parachains with a “core time” system. This will allow applications to pay for only the blockchain resources they need in a fair marketplace. Developers can start with a small amount of block space and increase as their application grows. This lowers the barriers to building on Polkadot and utilizes resources more efficiently.

Another key upgrade is asynchronous backing, which will increase throughput 8-fold for existing parachains. This allows faster transactions and greater scalability.

Polkadot 2.0 also implements a DOT burning mechanism. As more DOT is used to pay for core time, the supply decreases, potentially increasing DOT’s value.

Overall, Polkadot 2.0 introduces major architectural upgrades that can revive usage and development on the platform. By making Polkadot more accessible, scalable, and valuable, Polkadot 2.0 could lead to a new wave of innovative decentralized applications. If successful, the upgrade may allow Polkadot to compete more effectively with other leading smart contract platforms.