- Polkadot announced runtime upgrades that will improve app speed, confirm transactions faster, and make development on the network easier.
- Parity Technologies, the for-profit company behind the network, posted its first net profit in the fourth quarter of last year, helped by the return of founder Gavin Wood.
Polkadot announced new upgrades to mainnet including faster app execution and native smart contracts. It says the network has “leveled up” and the interface is now closer to Web2 while retaining the decentralization of Web3.
The upgrade will make Polkadot a “faster, simpler, and easier-to-use network designed for real-world apps,” it said on social media. Apps deployed on the network will feel faster and transaction finality will be faster. This upgrade also makes it easier to build apps on the network, allowing developers to focus on their products instead of protocol engineering.
Polkadot has leveled up.
Today's runtime upgrade marks the beginning of a faster, simpler, and easier-to-use network designed for real-world apps.
What would change for you?
→ The app feels fast and smooth
→ Transaction confirmation is faster
→ Builders can focus on products instead of protocol engineering… pic.twitter.com/1DkWSTifCe— Polkadot (@Polkadot) January 27, 2026
According to the network, one of the most important upgrades is that it now supports native smart contracts. Polkadot operates a mainnet known as a relay chain and a side network known as a parachain. Relay Chain does not support smart contracts and dApps. Used only for shared security and consensus. As explained in our guide, developers previously had to deploy smart contracts on parachains like Astar and Moonbeam.
The second era of polka dots
In addition to speeding up apps and smart contracts, this upgrade promises to reduce latency and the steps required to perform basic actions on the network. The app ecosystem is also easier to explore, and developers no longer face long app iteration cycles. Ultimately, all these improvements aim to provide an experience closer to Web2, but powered by Web3 technology.
$dot“Token inflation” on the native token will also “significantly decline,” the project said, adding:
This means a network designed to last. For users, builders and long-term holders. Polkadot can be used for everyday apps.
The upgrade is the first step in what the network describes as “the second era of Polkadot.” As founder Gavin Wood recently explained, the network has long focused on proving functionality and improving its architecture. This year we move on to creativity and application.
Meanwhile, Parity Technologies, the company behind Polkadot, recently revealed it was profitable for the first time since it started publicly disclosing its financials three years ago. After a tough second quarter last year, the company turned around in the third quarter and posted $4.1 million in revenue in the fourth quarter.
Image courtesy of Polkadot Forum.
This turnaround is believed to be due to Wood's reappointment as CEO of Parity Tech in August. Since then, he has doubled the lean budget and cut the company's $87 million lavish spending in 2024, with $37 million going to advertising. This includes spending $5 million to pay social media influencers and $180,000 to plaster the network's logo on private jets in Europe to target high-net-worth individuals.
$dot will be traded at $1.9 At the time of writing, we have almost made a profit. 2% Due to a sudden increase in trading volume 40% Up to $137 million. Although it has recovered, it is still in the red on the weekly chart and after falling 2 dollars Analysts say the token’s momentum is carrying over to the bears and could lead to further declines by the end of the week.
However, one analyst said a break out of the downward wedge pattern it has been stuck in since November could spark bullish momentum.
Image courtesy of Whales Crypto on X.
