What is Polkadot?
Polkadot is a next generation blockchain protocol that connects multiple specialized blockchains into a unified network.
This is a multi-chain framework, similar to Cosmos, designed to facilitate interoperability and scalability of blockchains that can be connected to its "Relay Chain". Polkadot is an ambitious project promoting proof-of-stake consensus (PoS) for the wider ecosystem of blockchains connected to it.
Problems that Polkadot needed to solve
Most new cryptocurrencies are born to solve some real world problems using blockchain technology. On the other hand, Polkadot was born to solve the problem of blockchain itself.
Polkadot clearly identifies the main problems facing existing blockchains in order to realize their full potential in delivering real world applications.
These issues include:
- Interactive abillity: The blockchain network remains discrete and independent, lacking in communication and interoperability.
- Ability of extension: The blockchain technology that exists today cannot run the number of transactions in the decentralized world.
- Independent and discrete: The blockchain network remains discrete and independent, lacking in communication and interoperability.
How does Polkadot solve the problems?
There are 3 concepts related to the structure of Polkadot. This design is the solution to the problems posed by Polkadot, which are:
- Relay Chain: This is the main Polkadot chain that all individual blockchains will connect to.
- Parachain: Short name for "parallelized chains". These individual blockchains will run in parallel through the Polkadot network.
- Bridge Chain: Bridge Chain is built to connect blockchain that doesn't use Polkadot governance protocol.
Polkadot's design works as follows:
Polkadot uses a relay chain that functions as a hub through which the parachains connect and coordinate consensus as well as transporting messages and data between parachains.
Both public and permissioned blockchains can connect to the network. With the possibility that chains are allowed to isolate themselves from the rest of the system while retaining the ability to transfer data to other chains and increase security for the network. Parachains can be blockchain or other data structures passed into the relay chain for aggregated security and interoperability with other chains.
Finally, with Bridge chain Polkadot can also create bridges with other chains and have their own consensus (such as Ethereum)
Another idea behind the Polkadot network is security sharing. Security resources will be aggregated within the Polkadot network. This will allow individual chains to leverage collective security without having to start from scratch.
DOT virtual currency
DOT is a Native Token derived from the Polkadot network that aims to perform the main functions of the platform. Similar to BTC is Bitcoin's native token
DOT is not an ERC-20 token (this is a question many people ask about DOT tokens)
Watch now: What is ERC-20 token?
Basic information about DOT copper
- Ticker: DOT
- Toke type: Native Token
- Total Supply: 10.000.000 DOT
- Max Supply: No information available
DOT token allocation
With a total supply of 10 million DOT, the amount of tokens has the distribution chart as follows:
Many brothers who do not know about the ICO should read this lesson.
Polkadot's ICO was one of the biggest of 2017. The final DOT price of 0,109 ETH meant a total of 485.331 ETH was raised from the sale of 5 million tokens. The auction was completed on October 17, 10, when the price of ETH was around $ 2017, which equates to a total value of around $ 320 million.
What is Dot (new) and DOT (old)?
On August 21, 8, DOT will go through the re-pricing process from its initial auction. This redefined will scale DOT 2020: 100, meaning DOT (new). will be 100 times smaller than DOT (old).
As a result, the total DOT supply and any account balance will be 100 times higher. But the price per DOT token will be 100 times lower than the original auction price. This event will not affect the total value of the network or any user's account.
Kraken and Binance have listed and redefined DOTs as DOT (new). However, not all exchanges complete the process, so be mindful of the prices and tokens used. See post by this Polkadot for more information.
The function of DOT token in Polkadot
DOT will serve 3 main functions in Polkadot, they are:
- Governance: Allows owners to complete administrative control over the platform. Included in this administrative functionality are network fee determination, schedule of additional parachains, and special events such as upgrades and bug fixes to the Polkadot platform.
- Staking: Facilitate the consensus mechanism that underpins Polkadot. In order for the platform to work and allow valid transactions to be executed on parachains, Polkadot will rely on DOT holders to play an active role. The participants will staking their DOT to perform these functions.
- Bonding & Payment: DOT will be awarded as a reward for active participation in the network. You will also need to link DOTs to add new parachains, which is a kind of Proof of Stake.
Functions of the DOT with the owner
DOT holders will have certain functions within the Polkadot platform, including:
- Ability to act as a Validator, Collator, Nominator or Fisherman
- Ability to participate in Polkadot administration
- The ability to participate in decision making regarding upgrades or changes to Polkadot
Now I will explain to you how the administration protocol for Polkadot design is implemented.
Polkadot will implement the Proof of Stake protocol. The Validator will secure the Reply Chain by staking the DOT token. Participate in consensus with other validators and validate proof from Collator.
Collators' role is to maintain parachains by collecting parachain transactions from users and generating state transition proofs to feed to Validator.
Finally, Nominator and Fisherman were the nominees for choosing good validators and staking DOT, which further helped secure the reply chain. Fisherman monitors the network and demonstrates bad behavior for the validator.
How to buy and sell DOT tokens
- Currently you can register and buy and sell tokens on the exchange Binance with DOT / BTC and DOT / USDT pairs.
- Participating in developing Polkadot network will become a reward
Where to store DOT tokens?
Polkadot already has its own storage wallet, which can be downloaded at: https://polkawallet.io/. This app is available on iOS and Android.
Alternatively you can keep DOT on the exchange you list you purchased.
Evaluate the potential of DOT copper
You can evaluate Polkadot's vision and projects that are using Polkadot's platform to make investment decisions.
Polkadot network will have the deployment plan in phases, please refer to the illustration
For details, you should refer to: https://polkadot.network/launch-roadmap/
Construction projects on Polkadot
The Polkadot ecosystem has a wide reach and use. Electronic money projects related to DeFi, electronic wallet, token, Oracle, DAO, privacy, exchange, game, IoT, ...
The future of the Polkadot project
With the support of DeFi dApps on the platform, Polkadot has a chance to capture this potential market share. With a total asset value locked up to 6.74 billion USD, this is a very good opportunity for any project involved in defi.
Overview of teams, organizations and investors
- Personal: Jutta Steiner (CEO of Parity Technologies), Gavin Wood (CWO and Co-Founder of Parity Technologies)
- Organization: Parity Technologies, Web3 Foundation.
- Investors: KR1, Kosmos Capital, zk Capital, BlockAsset Ventures
Should I invest and DOT? Polkadot is quickly gaining traction in the DeFi sector and the crypto community. Thanks to its easy integration and extensive aggregation, Polkadot's projects are quickly gaining high value. Take a close look at the project to decide to invest with your money. Hopefully DOT token will reach a high price in the near future. Thanks