Polkadot is a cryptocurrency network that is created to entwine all the diversified blockchains together.
Brief
- Polkadot is a “multi-chain network” that is designed to adjoin the diversified different specialized blockchains together into a unified network that synchronizes all the chains.
- Polkadot connects all the blockchains and these blockchains work parallel to the chains that are referred to as Parachains.
- Parachains allow the Blockchains to access the Polkadot network’s validation of transactions. It ensures security on the network.
- Blockchains operate separately as well as in groups. Polkadot creates an internet of interoperable blockchains for a decentralized web.
If you have the curiosity to know about Polkadot then you are in right place. This guide entails all the important information related to DOT. Below you will find how DOT created and how it works? We will tell everything in this article.
Also Read: How to Buy Dogecoin (DOGE)?- A complete guide
What is Polkadot (DOT)?
Polkadot is referred to as a public chain and it is known as a special public chain. This crypto network is created by joining multiple specialized chains, it has combined several blockchains. DOT is an open-source sharing multi-chain that is based on Blockchain technology. DOT network is based on Oracle technology that adjoins the diversified different specialized blockchains together into a unified network. Oracle technology authorizes multiple chains to share the information between multiple projects and networks. The idea behind creating the Polkadot network is to design a decentralized web that allows Blockchains to share information. Polkadot hits the list of the top ten cryptocurrencies of the world. In the market, the DOT coin stands in ninth place.
Dot tokens enable the transfer of tokens on its network and it also allows the transferring of the data between different chains. The motive of creating DOT is to offer the best cross-chain network protocol that makes cross-chain registration possible to the users. Dot chain is designed to boost the speed of a personalized Blockchain network.
Polkadot is a cryptocurrency network that is created to entwine all the diversified blockchains together.Polkadot is a “multi-chain network” that is designed to adjoin the diversified different specialized blockchains together into a unified network that synchronizes all the chains. Dot network joins all the dots on this network; it is referred to as a multi-chain network. The ultimate goal of this chain is to act as a framework for all blockchains that opt-in, a bit like HTML sites. This chain network enables developers to create dapp and smart contract functionality.
What Technology used in Polkadot?
DOT network is based on Oracle technology that adjoins the diversified different specialized blockchains together into a unified network. Oracle technology authorizes multiple chains to share the information between multiple projects and networks.Polkadot is a “multi-chain network” that is designed to adjoin the diversified different specialized blockchains together into a unified network that synchronizes all the chains.
Why is it important?
Developers are building innovative and decentralized systems that are focusing on adjoining the different blockchains. It has invested tie, talent, and resources in creating this network. It is the platform that focuses on scalability, governance, and cooperation among different blockchains. This network is different from others. Dot tokens enable the transfer of tokens on its network and it also allows the transferring of the data between different chains.
How does Polkadot work?
Polkadot connects all the blockchains and these blockchains work parallel to the chains that are referred to as Parachains. Parachains allow the Blockchains to access the Polkadot network’s validation of transactions. It ensures security on the network.
Blockchains connected to Polkadot can use their PoS mechanism and decide how they want to update the code. Polkadot is a cryptocurrency network that is created to entwine all the diversified blockchains together. Polkadot is a “multi-chain network” that is designed to adjoin the diversified different specialized blockchains together into a unified network that synchronizes all the chains.
The ultimate goal of this chain is to act as a framework for all blockchains that opt-in, a bit like HTML sites. This chain network enables developers to create dapp and smart contract functionality.
The Polkadot’s Developers
Polkadot (DOT) is created by Gavin Wood. Gavin Wood I the co-founder of Ethereum. DOT is developed by the Web3 Foundation and Parity Technologies. Gavin Wood and Jutta Steiner funded Web3 Foundation and Parity Technologies.
What problems does this network solve?
This chain network has solved two blockchain-based systems. It is needed to solve the scalability of the network. The two major issues that needed to scale up are the number of transactions per second the network can handle and the governance. In governance, it is checked that how the community manages the protocol upgrades and changes. Polkadot is aiming to solve these two major issues.
Does Polkadot have a cryptocurrency?
Yes, the Polkadot network has its cryptocurrency; the name of the currency is DOT token. DOT is the internal token of the Polkadot network. This crypto token allows the holders to vote on potential code changes and it automatically changes across the network once the consensus is reached.
Recent developments
Polkadot launched its mainnet in May 2020 and this mainnet quickly gained support among investors, developers, and cryptocurrency traders. Within a year it has stored many impressive honors and developments, some of them are-
- After this launch DOT became the fourth largest cryptocurrency in the world.
- The market capitalization of this cryptocurrency reached $18 billion.
- Recently it has seen considerable addition in developer activity as more than 340 projects are now actively introduced on the platform.
- It has been rebranded by Koto, the design agency by deploying community input via the Polkadot Brand Bounty Program.
- The older DOT coins have been split 100 ways to produce new DOT tokens. The supply of DOT coins has increased from 10 million to 1 billion.
Where to buy Polkadot?
Dot coins were launched a year ago but it has gained the immense popularity in the market. One can easily buy DOT coins at a cryptocurrency exchange. Several cryptocurrency exchanges are offering DOT coins for trading, it has traded on the top crypto exchange of the industry.
The exchange like Binance, Kraken, and Huobi Global have listed DOT tokens on their trading platform. This coin is listed on more than 100 established platforms.
How to buy POLKADOT Coins?
The easiest way to buy the DOT tokens is by paying through your debit or credit card on Binance. You can buy DOT tokens easily here by opening your account. Follow these steps to acquire DOT tokens on Binance exchange-
Visit the official page of Binance and create an account on the exchange. To create the account you have to provide the basic information including your phone number and email address.
Once the account is opened you have to login into your Binance account. Once you log in click on the Buy Crypto option that is featured in the header. After this payment screen will appear on the system here you have to select the desired payment currency in the top right and then click on the payment option that you select. For example, we are buying DOT and paying through VISA debit card in US Dollars (USD).
Deposit Funds
The payment screen will appear and here you have to select the asset that you want to buy, click on Coin a drop-down menu will appear there you have to select DOT. Enter the amount of DOT for that you want to buy the coins. Sill the amount that you want to spend on DOT tokens.
Buy Polkadot
Click on “BUY DOT”, once you click it the exchange will ask you to verify your identity. Here you have to provide basic information such as name, address, and date of birth; also you have to upload two images including your photo and a photo identity proof. Photo ID proof could be the national ID card, passport, or driving license. The KYC process gets completed within one hour, sometimes it takes more than that also.
Once the user’s identity is verified you can proceed further to complete the process. Now you have to provide the payment information that how you want to buy the tokens. Now simply enter the card details and the billing address. Now click on “Pay Now”.
Once the payment information is verified by the exchange, it will initiate the transaction and it will charge its transaction fees and deposit the equivalent DOT tokens in your Binance wallet.
Almost every exchange has the same procedure; the only difference is the currencies and payment methods that are supported on different exchanges. You can choose the exchange as per your preferences; choose wisely after seeing all the parameters.
Can I buy DOT tokens on Coinbase?
Yes, Coinbase has listed DOT tokens. You can easily buy dot tokens on Coinbase and it has a similar process to Binance. Coinbase is the largest crypto exchange in the world.
How long do DOT tokens transfer take?
DOT transaction is executed instantly; it doesn’t take more than one minute.
What is the aim of the Polkadot network?
The aim of creating DOT is to offer the best cross-chain network protocol that makes cross-chain registration possible to the users. Dot chain is designed to boost the speed of a personalized Blockchain network.The idea behind creating the Polkadot network is to design a decentralized web that allows Blockchains to share information.
How many DOT tokens are there in circulation? Is there any upper cap on supply?
More than 1 billion DOT tokens are circulated in the market. There is no upper limit or max cap on the supply of this token in the market.
What is Polkastarter?
Polkastarter is a Polkadot-based decentralized exchange platform that was introduced in late 2020. This exchange platform is created to support the cross-chain token pools and auctions. This platform supports the new projects that can easily raise the capital that is needed in launching the project and for further steps.
This exchange platform offers the opportunity to the investors to securely buy the tokens on this simple user interface. Polkastarter is pushed by the POLS token that is used for paying the transaction fees and gaining the access to limited token pools.
Should I buy Dot tokens?
We are not here to favor a particular coin. We are citing all the aspects ad features of the coin. We advise you to choose wisely as per your requirements. Every person has different requirements we cannot advise on a single basis. The cryptocurrency market is full of risk; traders should invest in their risk. There is high volatility in the crypto market and sometimes it goes high. So investors should choose wisely.
The Future
Polkadot is doing well in the market; it has successfully launched its DOT token in the market. DOT coins have become the fourth largest cryptocurrency in the world. The market capitalization of this cryptocurrency reached $18 billion.
Recently it has seen considerable addition in developer activity as more than 340 projects are now actively introduced on the platform.
Now it is facing the challenge from its competitors and counterparts that could be a hindrance in the success of DOT coins. It is the platform that focuses on scalability, governance, and cooperation among different blockchains.
Dfinity claims to focus on the same aspects including Scalability as well as WanChain also claiming to focus on interoperability. Cosmos is the biggest competitor of Polkadot and it is working on blockchain interoperability since 2014.
