What Is Polkadot?
Polkadot crypto is an open-source, scalable, user-driven heterogeneous blockchain. Heterogeneous means PolkaDot blockchain comprises the main blockchain called Relay chain, many additional Parachains (parallel blockchains) and Bridges which act as mediators. These parachains can be considered as relay chain’s clients whose main purpose is to ensure security and cooperation. Thus the blockchains working in parallel - parachains - are combined into a united network where the strengths are consolidated, and the shortcomings are mitigated.
PolkaDot team says that it is a project from developers for developers. The “chief-word” in the PolkaDot ecosystem is “connection”; the connection of independent public and private chains, Oracles, dApps, and services which altogether should eventually connect into the form of united internet Web 3.0.
DOT crypto allows interoperability with other inner and outer blockchains; it gives freedom of a smart-contract creation; it makes it possible to rule the blockchain by the hand of DOT token holders; it allows sharing the unique features of blockchains in a trust-free manner, while also pooling their security.
Polkadot cryptocurrency is among the TOP- 10 cryptocurrencies by market capitalization with a total market cap of $8 billion.
Polkadot History Brief
As a matter of fact, DOT coin was developed by one of Ethereum's co-founders Dr. Gavin Wood (Ph.D. in Software Engineering). Before Polkadot, Dr. Wood programmed the first functional version of Ethereum, collected more than 20 years of coding experience and even created his own coding language - Solidity, which aimed to build smart contracts on Ethereum.
Dr. Wood finished his first Polkadot whitepaper draft in late 2016. In the whitepaper he described technology behind the project. There he claims blockchain technology to be very promising yet vulnerable to errors which might slack down its potential, whereas Polkadot aims to put blockchain to another level. Polkadot tends to fix these errors and create a scalable blockchain architecture (which can grow along with the increasing demand for it), where different blockchains with unique functionality can productively interact with each other.
In Polkadot’s history, special mention deserves the ICO. In October 2017 the DOT coin ICO took place and raised more than $145 million. Apparently, an interesting, fresh idea and solid developers made it all through, because money-wise Polkadot was the seventh most successful ICO in 2017.
The initial Polkadot price was $28.80. It was all spectacular until 2 weeks later $90 million were frozen due to the Ethereum-based Parity wallet vulnerability crack. At first, hackers stole 153,000 ETH, later they made another attack and 513,000 ETH were frozen.
One week post-hack, the Polkadot crypto team publicly confirmed that they were still capable of running their project and remained on their development plan. Surely, there have been multiple attempts to revive the lost funds, but unfortunately, over 500,000 ETH are still locked.
What is Polkadot coin?
As it has been mentioned, Polkadot blockchain has its own coin called DOT. In general, it serves 3 main goals: governing the network, executing operations, and bridging parachains.
A user can keep his Polkadot token on a desktop or mobile wallet, among the most popular ones are Polkawallet, Math Wallet, Ledger Nano S, Cobo Wallet и KodaDot. Besides, Polkadot is available for purchase on many crypto exchanges. DOT is usually listed as a coin of decent liquidity. For the time being, DOT price is 42.408 USD.
Pros and Cons
Let’s consider Polkadot’s point by point.
- Unlimited Scalability - Polkadot can adjust to its relay chain an infinite number of parachains and connect them to each other. Thus the total throughput of the system can coherently grows and allows users to connect to Polka dot without slowing down the network.
- An adaptive consensus mechanism - Since different blockchains operate on different consensus mechanisms, the Polkadot platform provides an open and adaptable consensus mechanism for hosting any of them.
- In-network transactions - the project supports the transfer of value between different blockchains. This is necessary for interaction and true integration.
- Update Capability - Polkadot can be updated without forking the blockchain which spares users from an extra headache.
- Liquidity - due to all of its features nowadays Polkadot is one of the most promising and utilized coins on the market.
- Security - Polkadot’s security system provides the necessary layer of protection for the entire system, as well as for the blockchains, services and applications involved in it.
- Open source - being open source allows anyone to verify its reliability, as well as help in finding and correcting errors.
- Community - all network participants can receive rewards for actions that contribute to the development of the network. There are penalties for actions that do not comply with the consensus algorithms. This contribution ensures the reliability of Polkadot.
Now let’s take into consideration that the project has its personal features:
- Staking - parachains creators must keep DOT tokens for the entire duration of their product operation in the system.
“Polkadot is a crucial infrastructure element of Gavin Wood’s vision for Web3 and represents the most technically ambitious endeavor we have ever seen in blockchain. Realistically, only the deep and extraordinarily talented team from Parity have the technical chops to pull something like this off.” - Ryan Zurrer, Polychain Capital.
“Polkadot is not designed to be a single blockchain, neither in space nor time. Polkadot is an amorphous multi-chain capable of fussless assimilation of new technologies and features over time, much like a website which evolves and iterates as you visit it day after day.” - Gavin Wood
- The Polkadot ecosystem has a widespread usage. Currently, 188 projects are being built on it. This includes crypto projects associated with DeFi, wallets, cryptocurrency infrastructure projects, tokens, Oracle, DAO, confidentiality, exchange, games, IoT, scaling, etc.
- Several well-known projects built on the Polkadot are Chainlink, Ankor, Center Network, Acropolis, Ocean Protocol, Protocol 0x, imToken etc.
Where To Buy Polkadot Crypto?
The best way to exchange your coins to DOT is StealthEX. It’s a super-friendly, non-custodial and limitless cryptocurrency exchange platform. So if you already have savings in crypto and wish to invest in Polkadot, just go to StealthEX and follow these easy steps:
- Choose the pair and the amount for your exchange. For example ETH to DOT.
- Provide the recipient address to which the coins will be transferred.
- Move your cryptocurrency for the exchange.
- Receive your DOT coins.