Polkadot Upgrade 2025: What You Need to Know

Polkadot is upgrading its network once again, bringing about a strategic and technical overhaul that redefines how developers, enterprises, and institutions can build on it.

Released in stages and culminating in the release of Polkadot SDK version 2509 in October 2025, this upgrade finalizes three core technical pillars: Asynchronous Backing, Agile Coretime, and Elastic Scaling. Together, they unlock faster transactions, flexible blockspace access, and real-time scalability.

However, the upgrade is more than just scaling the network; it's also about making it easier for builders to deploy applications right now. Alongside the core pillars, Polkadot Hub introduces Ethereum compatibility, enabling Solidity dApps to run with minimal changes. Meanwhile, PolkaVM opens the door to next-generation RISC-V-based smart contracts.

Together with the launch of Polkadot Capital Group, this milestone positions Polkadot not only as a developer-first platform but also as infrastructure for institutional DeFi and real-world asset (RWA) adoption.

Key Takeaways

• Polkadot's 2025 upgrade finalizes three core technical pillars: Asynchronous Backing, Agile Coretime, and Elastic Scaling.
• With the release of SDK version 2509, Elastic Scaling will be live on Polkadot (October 2025).
• Beyond scaling, the upgrade delivers Ethereum compatibility (deploy Solidity dApps directly) and PolkaVM (a RISC-V smart contract engine for next-gen dApps).
• Polkadot Capital Group connects institutions and real-world assets (RWA) to the ecosystem.
• Real-world proof already exists, with Mythical Games (NFL Rivals, FIFA Rivals) and Peaq mobility services built on Polkadot.

Where Parity Fits In

These upgrades are the result of years of research, engineering, and iteration by the team at Parity Technologies, the technical stewards of Polkadot.

Our engineers designed and implemented the Polkadot SDK, runtime upgrades, and validator logic that power Asynchronous Backing, Agile Coretime, and Elastic Scaling. These features didn't appear overnight: they were carefully architected, tested on Kusama, refined through stress tests, and deployed step by step with the community.

In August 2025, Dr. Gavin Wood returned as CEO of Parity Technologies to lead this next chapter. While he has consistently been recognized for technical vision, his renewed focus is on building products people want to use, tools, and applications that make Polkadot's infrastructure meaningful in everyday life.

This dual emphasis of deep engineering excellence and practical usability shapes Parity's role in Polkadot. The goal is not only to push the limits of modular decentralized infrastructure but also to ensure developers and institutions can build mass audience applications with confidence and clarity.

Asynchronous Backing: The First Step

Asynchronous Backing dramatically accelerates transaction confirmation times and expands overall network capacity, which is crucial for enhancing user interactions and facilitating various applications that rely on fast transactions.

It achieves this by allowing parachains, Polkadot's native sharing architecture and answer to Ethereum's rollups, to produce blocks at intervals that work for them, rather than simultaneously with the block they are "backed" by on Polkadot's Relay Chain.

• Before: Parachain blocks were produced around every 12 seconds
• Now: Blocks can be produced every 6 seconds, with block size increased 4x.
• Result: An 8-10x throughput boost for every parachain.

Agile Coretime: A New Model for Building on Polkadot

With the latest upgrades, the old parachain slot auctions for access to Polkadot's shared security (i.e., blockspace on the Relay Chain) have been eliminated. Agile Coretime introduces a flexible, market-driven model for acquiring computational resources. Now builders can acquire blockspace on-demand or in bulk and spin up parachains without significant upfront capital commitments. This shift makes it easier for startups, enterprises, and open-source teams to build on Polkadot without friction.

Elastic Scaling: Real-Time Vertical Scalability

Elastic Scaling is the game-changer. Parachains are no longer limited to a single core of Relay Chain blocks for securing transactions. Instead, they can dynamically access multiple cores in real time:

• High-traffic DeFi protocols can handle surges without congestion.
• NFT platforms and gaming applications can scale to meet the demands of users.
• Early tests point to hundreds of thousands of TPS on a single parachain.

Polkadot Capital Group

The launch of Polkadot Capital Group creates a dedicated initiative to connect traditional finance with the Polkadot ecosystem. This strategic move is designed to bring the benefits of blockchain to a broader audience, without compromising the platform's decentralization.

Focus areas include, real-world asset tokenization, compliant institutional DeFi frameworks and direct engagement with banks, asset managers, and capital markets to position Polkadot as the go-to infrastructure for financial institutions exploring blockchain adoption.

Real-World Proof

Polkadot isn't just a theory; it's already powering real-world applications.

Mythical Games, the studio behind NFL Rivals and FIFA Rivals, utilizes the Polkadot SDK to deliver scalable and reliable gaming experiences to millions of players worldwide. These games handle heavy transaction volumes without compromising user experience - precisely the kind of demand Polkadot is designed to meet.

Peaq, the economy of things network, is building decentralized mobility and energy services, ranging from connected cars to charging infrastructure. Its applications show how Polkadot can go beyond digital-native use cases to support real-world industries.

Source: https://polkadot.com/get-started/dapps/

These examples demonstrate why global teams are choosing to build on Polkadot: the infrastructure is not only performant but also adaptable to mainstream markets.

The Road Ahead: Beyond the Core Pillars

These upgrades are more than just scaling the network - it's also about making it easier for builders to deploy applications right now. Two key developments complete the picture:

Ethereum-Compatible Smart Contracts on Polkadot

Many projects in Web3 are already built with Solidity. Polkadot Hub is introducing full Ethereum compatibility, enabling the seamless deployment of existing Solidity dApps without requiring a rewrite from scratch.

For builders, the key advantage is the ability to deploy Solidity dApps directly on Polkadot with minimal changes, while leveraging the network's shared security and built-in interoperability without leaving their existing development stack. This lowers the barrier to migrating or extending projects beyond Ethereum, opening new opportunities with familiar tools.

PolkaVM (PVM): Smart Contracts Without Limits

PolkaVM is Polkadot's own virtual machine, purpose-built for performance and safety. It's designed to run RISC-V-based smart contracts, giving developers more flexibility than EVM compatibility alone.

PolkaVM delivers performance optimized for Polkadot's asynchronous execution and scaling features, as well as flexibility to write contracts in multiple languages that compile to RISC-V. Additionally, it provides future-proofing as it evolves with JAM and the broader Polkadot ecosystem.

Bringing It Together

With Ethereum compatibility and PolkaVM, builders get an easy entry point to deploy Solidity apps quickly, and the freedom to innovate with RISC-V-based contracts on PVM. Combined with Polkadot's core pillars of Asynchronous Backing, Agile Coretime, and Elastic Scaling, this creates a builder environment that feels familiar yet delivers radically greater power and flexibility.

At Parity, we remain focused on engineering excellence. Polkadot reflects not just where the network is today, but what's possible when you build with patience, transparency, and uncompromising technical standards.