With the popularity of cryptocurrency, new coins and currencies are introduced to the market daily. Some of these turn out to be suitable investments or find a technological niche that allows them to become functional. The non-functional ones turn out to be nothing but Shitcoins. One of the functional crypto coins in the market is none but Polkadot which is comparatively a new Solana blockchain network cryptocurrency in the market. If you are worried right now for lack of adequate knowledge on DOTs then cease your emotions right here as the following article is right here to talk about Polkadot, a cryptocurrency that’s recently been making waves on the Internet. Built on the Substrate cryptocurrency framework, this cryptocurrency has excellent potential. But before we get ahead, let’s look at what Polkadot is all about!
What You Should Know About Polkadot (DOT)
Polkadot is a unique PoS cryptocurrency that aims to be the backbone of a blockchain-based platform for the Web3 ecosystem. It provides scalability, privacy, and interoperability by allowing users to create customizable multi-chain networks.
Polkadot has been in development for over two years, and it’s currently based on the Substrate framework, the same framework Ethereum was built. The project aims to create an interoperable blockchain where all blockchains can communicate, using Polkadot as the bridge.
Polkadot’s primary goal is to be an interoperable blockchain platform that allows different blockchains to communicate with each other without compromising their security or decentralization. The idea behind Polkadot is that it will be able to move onto other blockchains without having to begin from scratch; instead, it can use existing codebases and protocols.
The Creators of Polkadot
One of the main things that make Polkadot worth noticing is that one of its leading creators is an ex-founder of Ethereum. The creators of Polkadot are Gavin Wood, a co-founder of Ethereum; Robert Habermeier, a Thiel fellow with experience in building blockchain networks; and Peter Czaban, the founder of Web3.
Other than being an interoperable blockchain platform for all blockchains in existence today, it is also designed to be secure and decentralized, just like other blockchain networks.
What’s the Point of Polkadot?
Polkadot is designed to support multiple blockchains in a single network. It does this by creating a modular design that can scale as needed to handle any number of blockchains.
Polkadot’s goal is to create a more efficient and transparent environment for the digital advertising industry by enabling:
- Decentralized content creation and distribution
- A distributed network for data authentication, verification, and storage
- An improved auctioning system for smart contracts powered by Polkadot
Direct Interaction Without a Third Party
If you are new to the crypto trade market then you might not know but there are specific reasons behind the popularity of the cryptocurrencies like Polkadots because these make them better than most of the other cryptocurrencies in the market. The best part of Polkadot is that it comes with a relay chain which forms an umbrella which in turn acts as a portal for transfer of cryptocurrencies in more than one place at a time. You can easily opt for transactions through these umbrellas without the fear of getting your funds stuck in the middle of nowhere. Hence, you would not even have to worry about the involvement of any third party in the transactions.
Easy Smart Contract Data Transfer
Its intelligent contract feature allows data to be derived from various sources and used for the completion of a smart contract. So, for example, if you wanted to create a smart contract that required some information from the user for completion that data could be sent to a polkadot smart contract from a private registry. Subsequently, the contract would be completed, and the data wouldn’t be revealed to the public either!
Polkadot’s main focus is to create a truly scalable, and secure blockchain with integrated features such as Turing-complete smart contracts and privacy-preserving technologies.
The Current State of DOT
The DOT cryptocurrency, which is Polkadot’s native coin, has experienced a slow but steady increase in value over the last few months. As of writing, DOT is trading at 5.34 USD on exchanges with high liquidity, like Sitio Official. This has been due to an overall increase in attention towards the project and its recent developments; however, there’s still a lot more work needed on the project before Polkadot could genuinely compete with other major blockchain projects such as Ethereum or EOS.
The Takeaway
Polkadot’s mission is to become the world’s most scalable and interoperable blockchain platform. Polkadot has seen heavy development behind closed doors for many years, but progress is finally being made. As more updates are released, Polkadot will become an increasingly viable option for dApp developers to consider when planning their next steps into blockchain technology.
