Table of Contents
What is Polkadot
Polkadot was created by a British computer scientist called Dr. Gavin Wood who is also a co-founder of Ethereum. It is an open-source sharding multichain protocol that allows different blockchains to transfer value and share their unique features while using one secure channel or ecosystem.
The foundation that runs this network sees the blockchain network as the solution to the Ethereum 2.0 network upgrade that is still in the process of development.
The network platform uses “Parachains” which allows atomic-interchain transactions between themselves in a trust minimized way, therefore creating an interlink internet of different blockchains.
The platform is determined to become a fully scalable, heterogeneous network with the aim of building a multi-chained technology. The Web3 Foundation describes The Blockchain Platform as the next-generation Blockchain.
DOT, The Native Token Of Polkadot
The native token of the blockchain-based network is called the DOT. The token has three key functions which include the following;
- It can be joined together to connect a chain to Polkadot as Parachain.
- It can be staked for the operation of the network
- Gives holders a voice in the governance of the network.
Unlike other cryptos like Bitcoin, there is no maximum amount of DOT. The token’s rate of inflation is not fixed. It has been designed to be 10% in its first year.
The amount of DOT generated is what validators get as rewards, and the remainder goes to to the treasury.
AS at the time of writing the article, The live price of DOT is $26.05 according to coinmarketcap with a 24hr trading volume of $1,486,932,834 USD.
Dot went down by 4.39% in the last 24hrs. The current coinmarketcap ranking is #9 with a live market cap of $25,723,389,676 US. The token has a circulating supply of 987,579,315 DOT.
Where To Buy DOT
DOT can be bought on several crypto exchanging platforms some of these platforms include;
It is always safe to research the exchanges before you make up your mind to buy assets from there as different exchanges offer different benefits.
Other exchanges you can buy DOT from are;
You should also consider your trading experience level before you make up your mind on an exchange to purchase your DOT from because some platforms are very complicated and new traders will find it difficult to use such platforms.
Another factor is also the fees, it is better to consider the fees when choosing an exchange platform. Some other exchanges to buy DOT are
How Many DOT Tokens Are There In Circulation
Dot has an issuance of 1 billion Tokens. The initial token supply was 10 million in August 2020 and by using a redenomination.
It was purposely done to avoid the use of small decimals and make calculations easier. the balance was increased by a factor of 100 but did not have any impact on the distribution of the token.
the first initial coin offering was held in October 2017. At that time the price of the token was $0.29, with 2.24 million tokens offered. The second ICO was held in July 2020 with a price per token of $1.25 and 342,080 DOT tokens sold.
What Is Polkadot Treasury
The treasury is responsible for holding some rewards earned on validators rewards and a small amount of the transaction fees and slashes.
The funds in the treasury are then used to pay for the day-to-day running of the network. and works done on the network’s ecosystem.
Some of the tokens in the treasury are also used to fund community projects through the on-chain treasury funding proposals which are approved by the networks council.
The Polkadot Ecosystem
Currently, there are over 300 projects that have been or are still being built on the network’s ecosystem. Varying from core technical infrastructure to applications for decentralized finance, digital identity systems, privacy-oriented data gaming, robotics, social networking, and supply chain logistics, and many more of these open-source developments.
Some other projects that are currently being developed in the network’s ecosystem are services that will enable applications in which a user’s account and data are stored with encryption, where they are encrypted locally on their own devices instead of the main server.
This gives users full control over their personal data and offers a user-friendly for users who don’t bother much about privacy and data rights to also benefit.
How Is the Polkadot Network Secured?
Polkadot secures its network through a set of common and known validators. These validators help secure its multiple blockchain networks and enable them to scale up all its transactions by spreading its data across many Parachains.
The blockchain network uses the NPoS (nominated proof-of-stake) mechanism to select its validators and nominators hence, maximizing chain security.
This incomparable validity scheme allows chains to interact with one another securely with the same rules, but remain independently governed as well.
What Makes Polkadot Unique?
Polkadot is a sharded multichain network, which means it can process a lot of transactions on different chains in parallel which can also be termed as Parachains.
This parallel processing ability improves the scalability of the network.
On Polkadot, Custom blockchains can be quick and easy to develop through the Substrate framework and can be connected to Polkadot’s network within very few minutes.
The blockchain network is also highly flexible and equally accommodative, thus allowing the sharing of information and other functionalities between users on almost similar applications on a smartphone.
Polkadot can be upgraded automatically without any need for a fork in order to implement new features or remove bugs.
The blockchain network has a highly refined user-driven governance system which also aids to secure the network. Communities are allowed to customize their blockchain’s governance on Polkadot based on their needs and evolving conditions.
Nominators, validators, collators, and fishermen all fulfil various duties to help secure and maintain the network and do away with bad behaviour.
The Future Of Polkadot
The Blockchain Network seems assured that’s its mission of building a Blockchain network that will operate on trustless transactions for verifying data and value in its hunt to decentralized internet.
The network brought to light “bridges” to bring together outside networks to its ecosystem. The bridges work to ensure a fast and secure transfer of values and data through an interoperable regulation.
For starters, Web3 Foundation is sponsoring some programs building solutions using the bridges. Some of those include interlays bridge connecting to Bitcoin and Snowforks, Ethereum bridge.
Take Aways
One thing that everyone asks about cryptocurrencies whether the old or new trader is the safeness of the currency in the market. So the real question now is
Is Polkadot safe.?
Orasio research believes that the Blockchain network is a good long-term investment. It is held by people who have in-depth knowledge in the industry and it has already shown some attributes of it being a problem solver for interoperability.
If it continues to grow steadily as it has been predicted by experts, then investors should relax and just wait for their profits.
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