After a bumpy start that saw 60% of the company’s ICO funding hacked, Polkadot is finally ready for public use. This next-generation blockchain brings a host of new features and interoperability to market. As a result, Polkadot is currently one of the most anticipated projects in the industry. Here are some of the reasons this platform continues to receive new support.
What is polkadot (DOT)?
Polkadot is a multi-chain application environment that enables cross-chain interoperability at a previously unimaginable level. In particular, Polkadot enables users to do more than just send tokens over blockchains. Polkadot enables these networks to communicate current data.
What problems does Polkadot (DOT) solve?
Polkadot is trying to address one of the most pressing issues in the blockchain sector, interoperability. The market is currently in a state of extreme foreclosure. Blockchains act as separate data islands with few possibilities to use the information of the other networks. Polkadot addresses these concerns by integrating a variety of proprietary technologies. In particular, Polkadot is even able to transmit information from private blockchains to public networks and vice versa.
Benefits of Polkadot (DOT)
There are endless reasons to connect individual blockchains. For one, the ability to send any type of data over any type of blockchain is revolutionizing the sector. You can transfer this data over public, open, permissionless blockchains and take advantage of the best features of any network.
In this way, Polkadot ushers in a new era of scalability, interoperability and security. The company’s flexible and adaptable architecture makes building technology easier, including intelligent contract platforms. In this way, developers can start building next generation applications that receive authorized data from a private blockchain and use it on a public blockchain. These capabilities lead some analysts to suggest that polkadot poses a credible threat to Ethereum’s dominance.
How does polkadot (DOT) work?
The Polkadot system works in a unique way that combines a network of heterogeneous blockchains called parachains and parathreads. These chains are connected to and secured by the Polkadot relay chain. There are also cases where these chains are also connected to external networks via bridges. This design gives Polkadot additional flexibility. Here are the main components of the network.
The core of Polkadot’s functionality is the relay chain. This protocol is responsible for the common security, consensus, and cross-chain interoperability of the network. In particular, consensus across the relay chain is achieved through two consensus mechanisms with a single responsibility. The first is for block production and the second helps to get final.
Parachains are sovereign blockchains. These are networks that have their own tokens. In most cases, these networks are optimized for specific use cases. Parachains are free to design their own governance mechanisms that allow maximum freedom without affecting other parachains.
Parathreads work similarly to parachains, but with a few small tweaks. These networks operate on a pay-as-you-go model. This model is more cost effective for blockchains that don’t need a continuous network connection to function properly.
Another important feature are bridges. This protocol allows parachains and parathreads to connect to and communicate with external networks like Bitcoin. Bridges extend the interoperability of the network.
The DOT token is the native token of the Polkadot network. As such, it fulfills a number of important functions in the system. It is used to participate in governance decisions, including submitting proposals, votes, and commitments. It can also serve as an electronic payment system.
Polkadot offers a complex governance model. This model allows updates to the log to be made without performing hard forks. The system integrates transparent on-chain coordination in order to ensure the cohesion of the community. The Polkadot community consists of two groups:
Council members are elected to represent passive advocates. These nodes fulfill two main roles. They can propose new referendums in the network and reject proposals that they consider dangerous or too expensive.
The network also consists of the technical committee. This group consists of teams actively creating polkadot. One of their tasks is to propose emergency speakers. This system helps expedite the coordination and implementation of key network upgrades.
Polkadot takes a different approach to consensus mechanisms. The platform introduces the market to a new consensus mechanism known as the GRANDPA (GHOST-based Recursive Ancestor Deriving Prefix Agreement). This mechanism gives Polkadot a more secure and resilient network. In particular, it enables networks to bundle security. The added safeguards are then aggregated and applied to all of them.
GRANDPA is incredibly scalable compared to previous generation cryptocurrencies like Ethereum. For example, Ethereum can process around 12-tps. GRANDPA offers a major upgrade. The system offers almost instant confirmation times. On average, transactions take less than a second under normal network conditions. To accomplish this task, GRANDPA is introducing some new roles into the consensus system.
The task of nominators is to secure the relay chain. This task requires the nominators to select trusted validators and staking dots in the ecosystem.
Validators are responsible for securing the relay chain. Validators take on this task by staking points, validating proofs from collators and participating in consensus with other validators in the network.
The goal of collators is to manage shards by collecting shard transactions from users. Once this information is collected, the collators create evidence for the validators.
The network also uses some unique monitoring protocols known as fishermen. These nodes monitor the network and report bad behavior to validators. In particular, collators and any full parachain knot can take on the fishing role within the polkadot ecosystem.
Polkadot was designed from the ground up to simplify the most common programming tasks related to Dapp development. The platform was built with substrate. Substrate is very popular in the market as it simplifies the process of creating, deploying, updating, and experimenting with different types of application-specific blockchains. This integration enables DApp builders to pay more attention to innovation than to the mechanics of building and operating a blockchain.
Polkadot also integrates a flexible cross-platform networking framework for peer-to-peer applications known as libp2p. When you combine this with a runtime environment that allows developers to program in a variety of languages including Rust, C ++, and Golang, it’s easy to see how Polkadot enhances Ethereum’s original design.
History of Polkadot (DOT)
The story of Polkadot actually begins with the story of Ethereum. Polkadot was founded by Ethereum co-developer Gavin Wood. Wood was the co-founder, first CTO, and core developer of Ethereum. He is also known as the person who invented the Solidity Smart Contract programming language, which is at the core of Ethereum’s functionality.
Wood decided to leave Ethereum in early 2016 to build a more robust programmable blockchain. Specifically, he was thinking about how to develop a shard version of Ethereum. By October 2016, he had worked out the technical aspects and published the blockchain whitepaper.
Exactly one year later, Polkadot started its initial coin offering. The event, which ran from October 15-27, 2017, was one of the largest ICOs of the time. Specifically, the company secured around 145 million US dollars. However, the success of the event was short-lived.
Less than two weeks later, Parity Technologies, originally EthCore, one of the key development teams behind Polkadot, was hacked. This hack resulted in a total loss of around $ 150 million. Unfortunately, Polkadot’s ICO funding accounted for around 60% of the funds frozen during the hack. This loss of funding slowed development in the early days of the project.
In 2018, Polkadot made a strong return with the launch of the BBQ Birch Testnet. Importantly, this launch demonstrated the ability to use Substrate to create and deploy a web assembly smart contracts chain. In December of the same year, the Web3 Foundation announced the start of its funding efforts for the scholarship program to improve the Web3 ecosystem. In particular, both ChainSafe and Soramitsu received grants for the implementation of the Polkadot runtime environment in Go and C ++.
Last year, Polkadot continued on its way. The company has reached an important milestone after completing its PoC-3 and starting its Alexander test network. The new developments brought an improved governance mechanism and a host of other new features. In 2020, Polkadot took its development even further. The platform recently activated credit transfers.
How to Buy Polkadot (DOT)
Polkadot (DOT) is available on the following exchanges:
Kraken – This is one of the best exchanges for US residents.
Binance – Best for Australia, Canada, Singapore, UK, and most of the world. US residents cannot purchase DOT here. Use discount code: EE59L0QP for 10% cashback on all trading fees.
Hold up – This is one of the best exchanges for UK and US residents. U.S. customers can claim a debit card that earns cashback and crypto.
Easy Crypto – This regulated exchange is best for Australia, New Zealand, & South Africa.
If you’d like to invest through an IRA, it’s also available on iTrust Capital.
How to Save Polkadot (DOT)
There are several ways to keep your polkadot (DOT) safe. The platform offers users an official Polkadot JS wallet for free. The wallet is divided into two sections. The controller area can place orders on the network, while the stash function is used when storing large amounts of DOT.
There are some really cool mobile wallets for this cryptocurrency too. One of the most popular options is the Polka Wallet app. This Android Dapp allows users to save DOT easily and quickly. Mobile apps are much more convenient, but they are more prone to hacking because they stay online.
If you’re looking to make a big investment in DOT or plan to HODLing this crypto for a long period of time, a hardware wallet is the best option. Hardware wallets keep your crypto offline in “cold storage”. This strategy makes it impossible for online threats to access your inventory. The Ledger Nano S or the more advanced Ledger Nano X both support Polkadot (DOT).
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