What Is Polkadot?
Polkadot is an open-source protocol that connects multiple blockchain networks, to operate together as a single protocol. The aim of linking multiple blockchains to interoperate is to achieve more scaling and high capacity. Polkadot’s blockchain network offers basically everything do-able on a Blockchain with added advantage of moving assets between multiple chains seamlessly.
Polkadot has been gaining tractions lately for two major reasons – the high demand for scaling and its impressive performance in the cap market.
The native coin is called “DOT” and is used for three purposes – staking, governance over the network and bonding. Polkadot has been listed on major exchanges.
Features of Polkadot
High interoperability: Easy cross-chain transfer of assets, data, dApps and tokens across multiple blockchains in Polkadot network.
High Scalability: Polkadot supports cross-chain operations and seamless transactions using shared set of validators on multiple blockchains.
Forkless and future-proof: Easy upgrading of hard forks that fix bugs and integrate new features. It can easily upgrade itself automatically and adapt to changes.
Security: The security architecture of its cross-chain is top-notch. The validation scheme allows multiple chains to interact securely.
User-driven network governance: Polkadot’s network is Permissionless, meaning, all stakeholders have a say in its operations. The network is upgraded and coordinated on chain autonomously and reflects the opinions of the larger community.
Easy blockchain innovation: Custom blockchain can be created in couple of minutes using the substrate framework. Easy to connect your chain on the network to interoperate with other chains.
Team of Polkadot
The team is made up of experts in various fields, led by Dr. Gavin Wood. He was a key figure in the development of Ethereum Parity Technologies and solidity programming language. Dr. Gavin Wood was a key member that designed Ethereum Virtual Machine (EVM) and the former CTO of the Ethereum Foundation.
Other members of the team remain anonymous.
Practical uses of Polkadot
One of the reasons why Polkadot is gaining traction is because of its use cases and highlighted here, are some of the use cases:
- Polkadot is used for smart contract chains.
- It is used for data management across multiple chains.
- Polkadot is used for Internet of Things (IoT).
- Polkadot is used for file storage and identity.
- DOT tokens are used for payment solutions across various blockchains in Polkadot’ network.
- The protocol is used to transfer assets across multiple chains.
- DOT is used as a decentralized exchange parachain that allows cryptocurrency deposits.
Mining of Polkadot
Polkadot uses a version of DPoS (Delegated Proof of Stake) called NPoS (Nominated Proof of Stake) to mine. The system is made of validators and nominators, where validators are elected using tokens from nominators. Validators are the miners who mine (validate) new blocks. If there’s any act of misconduct, validators are punished alongside nominators who elected them.
Other ways to get DOT tokens is by participating in community program or by outright purchase from the listed multiple exchanges.
Notes for investors
Polkadot (DOT) is one of the promising high scaling blockchain solutions presently. The steady rise of the token is a pointer to its technological innovations in the cryptocurrency industry. Polkadot (DOT) assembled the most decorated developers in the smart contracts space and it’s reflecting in the meteoric growth both in valuation and projects.
Presently, the unit price of Polkadot (DOT) is $5.19 USD (200%) while the market cap is $4,429,150,111 USD; the circulating supply is 852,647,705 DOT and presently ranked 5th in the cryptocurrency market.
The statistics show that Polkadot (DOT)’s performance is fueling the industry’s growth and likely spring surprise before the end of the year 2020.
Quick Disclaimer
This report is the writer’s way of expressing his opinion and should not be interpreted as an investment advice.Whatever you do with this piece of information is solely at your discretion. As usual, nobody has the crystal ball at hand, do your research and consult before investing.