Polkadot (DOT) explained in 6 steps

Polkadot is a network established to develop functional solutions about scalability, customizability, and interoperability when required. “DOT” is the acronym of this network’s token.

1) When and by whom was it founded?

It was created by the Web3 Foundation, a Swiss-based foundation, and took its place on the markets on August 19, 2020.

2) The Infrastructure of Polkadot

Polkadot uses a consensus mechanism called Nominated Proof of Stake (NPoS).

In order to take part in the validation activities and take consensus roles in Polkadot, it is necessary to “stake” the “governance token” referred to as DOT. Established in all “proof of stake” consensus mechanisms, this is a method used to secure the network based on game theory.

Polkadot operates on a three-layer structure. The “Relay chain” is at the center of Polkadot and it is responsible for organizing security, consensus, and inter-chain communication. The relay chain is the main layer of the network that organizes the communication of security, consensus, and chains.

Along with the “relay chain”, there are two other layers: the “Parachain” layer that represents chains running parallel to each other, and the “Bridge” layer that establishes connections with other blockchains. Thanks to the “Parachain”, different projects have the opportunity to carry out their transactions in their own chains in many chains working parallel to each other. “Polkadot’s high scaling promise is based on this component.” “Bridge” is the component of Polkadot that allows it to interact with other blockchains such as Bitcoin, Ethereum, and Tezos. The functional infrastructure of the Polkadot network is ensured by these three layers.

Polkadot aims to ensure the sustainability of the system with four types of consensus roles. These roles namely, validator, nominator, collator, and fisherman have each a function essentially starting with DOT “staking”, validating, securing the network, collecting transactions from shards, and eliminating validators that damage the functioning of the system.

3) What does Polkadot promise to the users?

With the mentioned technical features, Polkadot can host many blockchain projects simultaneously. It aims to be able to run different projects operating in parallel chains together to provide the benefits of a fast, scalable, and secure network to the developers. It enables to bring together in its own chain the structures of different blockchains that operate independently and that are unrelated. With these features, Polkadot aims to offer a highly interoperable alternative for both internal and external actors.

4) Is Polkadot mined?

Polkadot is not a type of cryptocurrency that is mined.

5) The lowest and highest price with the total supply

The lowest value of Polkadot was $2.69 on August 20, 2020. The highest value was recorded at $6.84 on September 1, 2020. With a total supply of 1,020,546,682 DOT, the circulating supply of the cryptocurrency is 886,523,575 DOT.

6) How to make Polkadot transactions on Paribu?

You can click on the link and make your transactions on Paribu right away.

Bu içerik en son 26 October 2022 tarihinde güncellenmiştir.


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