Polkadot is an open-source and heterogeneous platform that facilitates the trustless transfer of data or blockchain assets across diverse blockchains. Through Polkadot, many blockchains have become interoperable,making the web more decentralized and private. With this interoperability, Polkadot also aims to simplify the development of new apps, products, or institutions.

With Polkadot’s protocol, public and private chains, permission-less platforms, oracles, and future technology can seamlessly relay and share information among themselves via the Polkadot relay chain. Polkadot bridges the gaps left out in blockchain technology’s vast and largely disconnected infrastructure. The protocol has a native coin, DOT, which serves multiple functions.

Polkadot Developers

Polkadot was founded in 2016 by Dr. Gavin Wood, Robert Habermeier, and Peter Czaban, all of Web3 Foundation – a Swiss Foundation that was started solely for facilitating a user-friendly decentralized web.

  • Wood is Web3 Foundation’s president and is credited for coining the term Web 3.0 back in 2014. He is the co-founder of Ethereum and has created many projects including, Parity Technologies and Ethereum’s smart contract coding language Solidity.
  • Habermeier is a Thiel Fellow and Polkadot co-founder. He isa highly experienced blockchain and cryptography researcher.
  • Czaban is the technical director of Web3 Foundation. He has vast experience in the fintech industry, which he gained working across defense, finance, and data analytics industries.

Currently, the protocol is under open-source development by five teams of over 100 developers. Some of these teams are Parity Technologies, ChainSafe, and Soramitsu.

Operations

Polkadot’s infrastructure comprises four key components: The Relay Chain, Parachains, Parathreads, and Bridges. Polkadot integrates a network of heterogeneous blockchains called parachains and parathreads. These chains connect to and are secured by the Polkadot Relay Chain and can also connect with external networks via Bridges. These components function as follows:

  • The Relay Chain is the primary chain where consensus is created on the Polkadot network. The Relay Chain facilitates interoperability and shared security across the multichain network.
  • Parachains are independently operating chains that connect to the Relay chain. Parachains may be optimized for dedicated use cases with their own tokens, and are maintained by validators known as collators.
  • Parathreads are built like parachains but introduce additional flexible connectivity depending on an economical pay-as-you-go mechanism.
  • Bridges are dedicated blockchains built to facilitate the connection and communication of parachains and parathreads with external blockchain networks.

With these features, the Polkadot network powers cross-chain data and asset transfer. The network brings true interoperability to blockchain technology and allows users to leverage features from various blockchains.

Also, Polkadot’s data availability and validity scheme ensure that chains maintain independence in their governance but pool their security while interacting with each other. This ensures that the security of the blockchains is aggregated and applied to all.

Application

Polkadot is a sharded multichain network. That is, it can process several transactions on multiple chains in parallel using parachains. This parallel processing power enhances the protocol’s scalability.

Polkadot deploys DOT tokens for various network operations. The functions include:

  • Governance: DOT holders have control over the entire Polkadot network. Polkadot Relay Chain participants, who must be token holders, will be given privileges like managing protocol upgrades.
  • Staking: The protocol deploys a game theory mechanism to incentivize DOT holders towards operating honestly. Unethical network participants lose their stake as a punishment.Nominators, validators, collators, and fishermen all perform different functions to secure and maintain the network and eliminate malicious behavior.
  • Bonding: New parachains will be added to the protocol by adding bonding tokens while redundant parachains are eliminated by removing the bonding tokens.
  • Fees: Message transfer fees across parachains are settled using DOT.

Polkadot Network Security

The protocol deploys the nominated proof-of-stake (NPoS) model for selecting validators and nominators to maximize chain security. Also, the interoperability of the protocol ensures that common validators secure multiple blockchains.

DOT Tokenomics

DOT has a total supply of 1 billion tokens, following redenomination from a maximum supply of 10 million DOT in August 2020. The project made this decision to ease calculations by reducing decimals as all balances were increased by a factor of 100.

Currently, there is over 938 million DOT in circulating supply with a market cap of $34.8 billion. The project ranks eighth largest by market cap in the crypto market.

Buying DOT

You can buy DOT on top exchanges like Huobi Global, Binance, OKEx, Kraken, and Gate.io. These exchanges offer multiple trading pairs including, DOT/USDT, DOT/USD, and DOT/BTC.

Learn more here:

Telegram Subscribe
telegram
Previous PostNext Post
wsumadmin
WSUM - We are wrapping & staking global community for block chain projects. Join our community to help secure networks and earn rewards. We know staking

Leave a Reply

Your email address will not be published. Required fields are marked *