1. What is Polkadot 2.0?

The Polkadot network has grown significantly over the past couple of years due to its unique utilitarian features. And now, a new vision for the network's future, which we can call Polkadot 2.0, has been laid out.

Initially announced in June 2023 by Polkadot founder Gavin Wood, the new network will change the way Polkadot assigns its resources. Speaking during the Polkadot Decoded 2023 event held in Copenhagen, Wood took the time to delve into the ideological concepts of the new system.

Wood said Polkadot 2.0 would use a new system for allocating blockspace. The system would be more flexible than the current lease model, allowing developers to buy blockspace as needed, either in bulk or on demand. This, according to the crypto network developer, would make it easier for new projects to enter the Polkadot ecosystem. He explained that the changes would also make Polkadot more attractive to Web2 businesses adopting Web3 frameworks.

The core concept driving the evolution of Polkadot 2.0 centers on the introduction of elastic cores, catering to adaptable computational capabilities. Presently, parachains function akin to fixed CPU cores within the Polkadot supercomputer. However, the upcoming system will allocate resources like Relay Chain security flexibly, responding to real-time needs. This innovation holds the promise of significantly enhancing efficiency throughout the ecosystem.

Another significant change in Polkadot 2.0 revolves around its strategy for coretime allocation. Coretime signifies the time needed for validation and consensus on the Polkadot Relay Chain. In the new version, coretime will be purchasable as block time. This will be achieved using an auction and a pay-as-you-go model with a fixed price.

The table below highlights the transition from fixed slot leasing in Polkadot 1.0 to a more dynamic and tradable coretime asset in Polkadot 2.0, allowing for greater flexibility and customization in coretime allocation.

According to Wood, the design of the new system would be based on the emergent needs of developers to avoid future design problems. He also noted that the new system could increase the liquidity of Polkadot (DOT) tokens by reducing token lockup periods.

Introducing the new model would be a significant milestone for Polkadot, marking a shift away from the current parachains model where blockspace is allocated primarily through an auction process and a fixed lease period. The new system is expected to make Polkadot more accessible and affordable for developers, fostering innovation in the Web3 ecosystem.