Polkadot (DOT): What is it?
Polkadot crypto by Crypto Nation – July 12, 2021
By Crypto Nation – July 12, 2021
Polkadot crypto card summary:
Polkadot fundamental data
Polkadot market data
Below are the basic market informations regarding this cryptocurrency:
- Price: It is expressed in dollars ($). There is also its percentage change (%) over the last 24 hours.
- Rank: Ranking of this cryptocurrency among all those referenced on CoinMarketCap. This is done according to the market cap.
- Market cap: Market capitalization represents the total dollar ($) value of all coins in circulation.
- Volume: It represents the total dollar ($) amount of the cryptocurrency in question traded over the last 24 hours.
What is the goal of the Polkadot project?
Polkadot is an open source multi-chain sharding protocol aimed at creating an internet of blockchains by facilitating the transfer of data and assets between multiple blockchains. Interoperability is the keyword of this ecosystem.
This term directs the project with the aim of establishing a global network, fully decentralized, private and under the governance of its users.
The project also aims to facilitate the creation and deployment of new applications, institutions or services.
This sprawling protocol is capable of making the link between private and public blockchains, open networks, oracles and no doubt many future technologies.
There are four key elements within Polkadot:
- Relay Chain: The core of Polkadot, which contributes to the creation of a consensus, the interoperability and the securing of the networks of the different chains.
- Parachains: This must-have ecosystem feature allows independent chains to have their own token and to be optimized for specific use cases.
- Parathread: A kind of Parachain but with flexible connectivity, based on a pay-as-you-go business model.
- Bridges: This item allows Parachains and Parathreads to connect and communicate with blockchains outside its own network.
The origin of the project
The Web3 Foundation, based in Switzerland, is behind the creation of the Polkadot project.
There are three main players within this foundation:
- Gavin Wood, the president of the Web3 Foundation, is one of the co-founders of Ethereum. He also founded Parity Technologies and is the creator of the popular programming language for smart contracts, Solidity.
- Robert Habermeier is a seasoned blockchain and cryptography researcher and developer.
- Peter Czaban is the CTO of the Web3 Foundation. Very experienced, he is currently contributing to the development of a new generation of distributed technology.
What is its use?
The DOT performs 3 main functions within its ecosystem:
- Operations on the network.
- Connection (bonding) of Parachains.
DOT holders have full control over the governance of Polkadot, especially during important phases like protocol upgrades and fixes.
Users also vote for the determination of network fees and the pace of auctions dedicated to Parachains additions.
Management of the economy (as of 07/13/2021)
First of all, you should know that there are several names on the Polkadot network, the smallest unit being the Planck.
1 Planck equals 0.000000000001 DOT.
The other units are:
- Microdot (uDOT): 0.000001 DOT.
- Millidot (mDOT): 0.001 DOT.
Unlike Bitcoin, the number of DOTs in circulation is unlimited. This cryptocurrency is therefore inflationary.
Polkadot is responsible for burning or forging DOTs in order to control inflation, while rewarding the nodes that participate in the functioning of the network.
There are currently 975 million DOT in circulation.
About 115 million were destroyed.
Diagram of the evolution of the cryptoactive
Where to store your cryptocurrency
If you prefer to take your cryptocurrencies out of centralized exchanges, you can store your Polkadot ($ DOT) via various solutions:
- Atomic Wallet, a very complete and secure software wallet.
- Trust Wallet, bought by Binance, it has become the benchmark mobile wallet.
- Ledger, very secure wallet hardwares, the best known being the Ledger Nano S.
More details on the different types of cryptocurrency wallets on our dedicated page, accessible by clicking here.
Our opinion on this project
Polkadot appears to be the most advanced “Internet of Blockchains” today. With Gavin Wood at the head of the project, it’s already a great asset to move forward quickly and set the bar very high.
Very ambitious, with solid foundations, Polkadot could become one of the pillars of Web 3.0, even if there is still a long way to go. Its unique design and incredible interoperability already shows how much Polkadot pushes for innovation.
The ecosystem is clearly only in its infancy and the DOT is king in this system, where it is essential. The future therefore seems golden for this technologically advanced token.
On the other hand, although open source, this one cannot be approached by just anyone. Polkadot’s technology is complex. It will take good knowledge to be able to tame its power.