Cryptocurrency Polkadot has its own blockchain. Polkadot also has a native DOT coin that works for transactions in its ecosystem. Today the Polkadot network (DOT) ranks 12th in the world in terms of capitalization, with more than 6.5 billion euros. Here is a complete explanation of Polkadot (DOT).
Understanding Polkadot (DOT)
Polkadot is a blockchain that can connect and coordinate various other blockchains, called parachains. Parachain is a blockchain that has a specific function and purpose, such as storing data, running applications, or sending transactions.
With Polkadot, parachains can communicate and collaborate with each other, without having to rely on major blockchains like Bitcoin or Ethereum. DOT is Polkadot's native token
History of Polkadot
Polkadot's history began in 2016 when the crypto's white paper was published. Behind Polkadot, we find a special figure, Dr. Gavin Wood – the founder of Polkadot. If this name means nothing to you, you should know that he is one of the founders of the Ethereum network.
Dr. Gavin Wood is the man who created the Solidity programming language, which is used to create smart contracts on Ethereum. He is also the former CTO of the Ethereum Foundation, a non-profit organization that manages the development of Ethereum. However, in 2016, he decided to quit Ethereum and create his own project, namely Polkadot.
Why was Polkadot developed?
Based on Polkadot's white paper, Gavin Wood identified two difficulties in the blockchain market. So, from the beginning, Gavin Wood wanted Polkadot to provide solutions in the areas of scalability and isolatability.
Scalability is the ability of a system to handle increased workloads without sacrificing performance or quality. Isolatability is the ability of a system to maintain the integrity and security of data without being affected by other systems.
Polkadot was developed to improve the scalability and isolatability of blockchains by connecting various parachains that have their own specialties and customizations. Thus, Polkadot can offer higher flexibility, interoperability, and innovation than traditional blockchains.
How Polkadot Works
How Does Polkadot Work? Polkadot uses a consensus algorithm called Nominated Proof-of-Stake (NPOS), which is a derivative of Ouroboros, a protocol created by Aggelos Kiayias. NPOS involves two types of participants: validators and nominees. Validators are responsible for validating data, reaching consensus, and executing transactions on the relay chain.
Nominees are people who vote for validators they trust and support them by depositing a certain amount of DOT tokens, Polkadot's native currency. Nominees get a portion of the rewards received by validators, but also risk losing some of their tokens if their chosen validators behave badly or dishonestly.
Polkadot also has a mechanism called forkless governance, which allows the network to be updated and improved without breaking up communities or disrupting operations. Forkless governance allows DOT token holders to propose, vote, and implement changes to the protocol without the need to create a new version of the blockchain. This increases the efficiency, flexibility, and adaptability of Polkadot.
Why are Polkadots Important?
Polkadot is one such project that strives to realize the vision of web 3.0, the next generation of the internet, which is expected to become more functional, user-friendly, and secure. With Polkadot, developers can create and operate their own blockchain that suits their needs and goals, without having to sacrifice interoperability or security. Polkadot also allows users to take advantage of various services and applications built on different blockchains, without having to rely on third parties.
Polkadot has the potential to open up new opportunities for innovation, collaboration, and inclusion in various fields and industries, such as finance, identity, gaming, social, and more. By connecting various blockchains, Polkadot can create a richer, more diverse, and stronger ecosystem, which can empower individuals and communities around the world.
How to Buy DOT on Bittime
You can buy and sell DOT in an easy and secure way through Bittime. Bittime is one of the best crypto applications in Indonesia that has been officially registered by Bappbeti. DOT is available on Bittime with DOT IDR pairing.
To be able to buy DOT/IDR tokens on Bittime, make sure you have registered and completed identity verification. In addition, also make sure that you have enough balance by depositing some funds into the wallet. For your information, the minimum purchase of Bittime assets is IDR 10,000. After that, then you can make DOT purchases in the application. Complete Guide on How to Buy DOT on Bittime.
Monitor the price chart movements of Polkadot (DOT), Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also Read:
Polkadot (DOT) Price Analysis: Can It Reach $10?
What Is Parachain, How It Works and Benefits
DISCLAIMER: This article is informational in nature and does not constitute an offer or solicitation to sell and buy any crypto asset. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices may change significantly from time to time and Bittime is not responsible for fluctuations in crypto asset exchange rates.
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