Historically, Polkadot has struggled to build an active user base for decentralized applications (dApps), often falling behind platforms like Ethereum, Solana, and Avalanche. The upcoming JAM upgrade seeks to turn this around by adding new uses for the DOT token and expanding what decentralized networks can do.
Polkadot challenges with adoption were partly due to its complex ecosystem, making it tough for developers to get started. Developers need to understand its Layer 0 architecture, work with parachains, and deal with the costs of securing parachain slots, which has slowed the network’s growth.
Unlike Ethereum, where smart contracts can be deployed directly, Polkadot’s relay chain doesn’t natively support smart contracts, requiring developers to use parachains instead. This has limited both the user base and the utility of the DOT token.
That said, the JAM upgrade will streamline Polkadot’s development process by letting developers deploy smart contracts directly on Polkadot’s Layer 0, removing the need for parachains. This change could draw in more users and provide a direct use case for the DOT token beyond staking and governance.
Wood suggested that JAM could host more than just blockchains, offering a general-purpose environment that could be classified as Layer 1, with services running on JAM considered Layer 1.5. In this context, blockchains secured by JAM could be considered Layer 2.
Built on the RISC-V Polkadot Virtual Machine (PVM), JAM also enables the creation of decentralized autonomous organizations (DAOs) and wallets without relying on centralized intermediaries. It allows smart contracts to be deployed directly on Polkadot’s core layer, much like Ethereum.
DOT tokens will also gain new utility as deposits to increase data, code, and state capacity in services, providing economic incentives for both developers and users. Moreover, JAM sets a target throughput of 850MB/s, far surpassing the capabilities of Ethereum 2.0 and Solana.
Polkadot creator mentioned that the gray paper for JAM Chain is still in development, currently at version 0.3.4, with the goal of reaching version 1.0 by next summer. However, he cautioned that software and protocol development are inherently uncertain, so this timeline is more of a target than a fixed deadline.
As this upgrade is rolled out, it is expected to introduce permissionless code execution, eliminating the need for governance approval or parachain leasing. With these changes, Polkadot should facilitate the development of self-sovereign DAOs and wallets, opening up new possibilities for decentralized finance, governance, and identity management.
Source: Cryptocurrency - investing.com
