One of the main challenges faced by Polkadot in the past has been its struggle to build an active user base for decentralized applications (dApps). This has put it behind other platforms such as Ethereum, Solana, and Avalanche. The complex ecosystem of Polkadot has made it difficult for developers to get started. Understanding its Layer 0 architecture, working with parachains, and dealing with the costs of securing parachain slots have all contributed to slowing down the network’s growth.
The upcoming JAM upgrade aims to address these challenges by adding new use cases for the DOT token and expanding the capabilities of decentralized networks. Unlike Ethereum, where smart contracts can be deployed directly, Polkadot’s relay chain does not natively support smart contracts. Developers have had to rely on parachains instead, limiting both the user base and the utility of the DOT token. However, with the JAM upgrade, developers will be able to deploy smart contracts directly on Polkadot’s Layer 0, eliminating the need for parachains. This change is expected to attract more users and provide a direct use case for the DOT token beyond staking and governance.
Gavin Wood, the creator of Polkadot, has suggested that the JAM upgrade could offer more than just blockchains. It could provide a general-purpose environment that could be classified as Layer 1, with services running on JAM being considered Layer 1.5. This would mean that blockchains secured by JAM could be seen as Layer 2. The new upgrade will be built on the RISC-V Polkadot Virtual Machine (PVM), enabling the creation of decentralized autonomous organizations (DAOs) and wallets without the need for centralized intermediaries. This will allow smart contracts to be deployed directly on Polkadot’s core layer, similar to Ethereum.
The introduction of the JAM upgrade will also bring new utility to DOT tokens. They can be used as deposits to increase data, code, and state capacity in services, creating economic incentives for both developers and users. Moreover, JAM aims for a target throughput of 850MB/s, surpassing the capabilities of Ethereum 2.0 and Solana. However, it is important to note 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. The timeline for this rollout is more of a target than a fixed deadline, as software and protocol development can be inherently uncertain.
As the JAM upgrade is implemented, it is expected to introduce permissionless code execution, eliminating the need for governance approval or parachain leasing. This will pave the way for the development of self-sovereign DAOs and wallets on Polkadot, opening up new possibilities for decentralized finance, governance, and identity management. The introduction of JAM Chain represents a significant step forward for Polkadot, potentially positioning it as a key player in the increasingly competitive world of decentralized networks.