Polkadot’s Upcoming JAM Chain

In a recent interview with Bullish CEO Tom Farley, Polkadot creator Gavin Wood discussed his focus on developing the next iteration of the Polkadot protocol, known as JAM Chain.

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 aims to change this by adding new uses for the DOT token and expanding the functionalities of decentralized networks.

Polkadot has faced challenges with user adoption due to its complex ecosystem, making it difficult for developers to get started. Understanding its Layer 0 architecture, working with parachains, and the costs associated with securing parachain slots have all contributed to slower network growth.

Unlike Ethereum, where smart contracts can be directly deployed, Polkadot’s relay chain doesn’t support smart contracts natively, requiring developers to use parachains, which has limited both user base and DOT token utility.

The JAM upgrade will streamline development by enabling direct smart contract deployment on Polkadot’s Layer 0, reducing the reliance on parachains. This change could attract more users and provide additional use cases for the DOT token beyond just staking and governance.

Wood suggests that JAM could host more than just blockchains, offering a general-purpose environment that might be seen as Layer 1 and categorizing services running on JAM as Layer 1.5. Blockchains secured by JAM could be regarded as Layer 2.

Built on the RISC-V Polkadot Virtual Machine (PVM), JAM enables the creation of decentralized autonomous organizations (DAOs) and wallets without relying on centralized intermediaries. It allows direct smart contract deployment on Polkadot’s core layer, similar to Ethereum.

The DOT token will gain new utility as deposits to enhance data, code, and state capacity in services, creating economic incentives for developers and users. Furthermore, JAM targets a throughput of 850MB/s, significantly outperforming Ethereum 2.0 and Solana.

Wood mentioned that the gray paper for JAM Chain is still in development, currently at version 0.3.4, aiming for version 1.0 by next summer. However, he noted that software and protocol development are inherently uncertain, making this timeline a goal rather than a fixed deadline.

As the upgrade rolls out, it is expected to introduce permissionless code execution, removing the need for governance approval or parachain leasing. These updates should facilitate the creation of self-sovereign DAOs and wallets, unlocking new opportunities in decentralized finance, governance, and identity management.