You have probably heard of Polkadot (DOT) making waves in the cryptocurrency world. Designed with the downsides of Ethereum in mind, the Polkadot protocol aims to provide an infrastructure that allows other blockchains to communicate with each other. With its focus on interoperability, it represents one of the most significant technological developments on the path to the decentralised internet. This is one of the reasons why we have listed DOT, Polkadot's native token, on our platform.
Polkadot became widely popular during the last two years due to its innovative approach. By enabling multiple blockchains to interact with one another, it addresses one of the big problems in blockchain technology: the lack of interoperability.
There are many different blockchains out there such as Bitcoin or Ethereum. But there is no uniform way for these blockchains to interact with each other, for example to transfer assets recorded on one blockchain to another blockchain. This fragmentation limits the usefulness of blockchain technology as a whole. For instance, developers must choose between incompatible platforms when building applications.
The Polkadot network can be used to transfer any data between different blockchains. It can transfer this data across both public, open, permissionless blockchains and private, permissioned blockchains.
The multichain vision for Web 3
Besides interoperability, Polkadot also stands for scalability and security. You may have heard about these attributes in terms of the so-called blockchain trilemma. It means that decentralization, security and scalability can’t all be represented in one blockchain. Developers must sacrifice one of them to get the other two. Polkadot's unique technology that enables interoperability between blockchains is a big step towards true decentralisation while maintaining high security and scalability.
“Polkadot is an exciting project to keep an eye on. Launched two years ago in Zug, Switzerland, by the Web3 Foundation it has the potential to change the way we think about blockchain technology. It’s dedication to interoperability is an important step in the further development of blockchain systems. The Polkadot protocol might become the fundament for a new, decentralized internet where users have complete control over their data. I am delighted that we have listed Polkadot's native token DOT. It is an excellent addition to our curated range of digital assets.”
Olga Feldmeier, co-founder of SMART VALOR
The blockchain of blockchains
Polkadot was founded in 2020 by Gavin Wood, Robert Habermeier and Peter Czaban. Gavin Wood is also one of the founders of Ethereum and founder of Parity Technologies, the development company behind Polkadot. Furthermore, he is president of the Swiss-based Web3 Foundation, which calls Polkadot its flagship project.
Polkadot is referred to as next generation blockchain. As a layer-0 protocol, Polkadot offers an innovative format to host other protocols on top of it. The network consists of two basic components: The relay chain, which is the basis, and user-created parachains that connect to the main relay chain. These parachains can be easily and quickly set up and can be adapted for any number of uses. The parachain transactions benefit from the high security offered by the main chain. These features make Polkadot very attractive, especially for smaller blockchain systems.
Thanks to its nominated proof-of-stake model (NPoS), the Polkadot network consumes very little energy. A recent study shows that Polkadot has the lowest carbon footprint among known proof-of-stake protocols such as Cardano or Solana.
DOT – the native token of the Polkadot platform
The market capitalisation of Polkadot’s ecosystem is currently $7,68 billion. The three top Polkadot-based tokens by market capitalisation are DOT, Chainlink (LINK) and Compound (COMP). They are all tradable on our platform.
The DOT token serves three purposes: staking for operations and security, facilitating network governance, and bonding tokens to connect parachains. DOT is currently the 12th largest cryptocurrency by market capitalisation.
Polkadot had its all-time high on 4 November 2021 with $55.00 and its all-time low in 20 August 2020 with $2.69. The coin currently costs $6.78 as of 31 October 2022. We will soon be offering DOT staking on the SMART VALOR platform. This will allow you to benefit even more from your investment in the form of staking rewards.
Key highlights of Polkadot:
- Changing the crypto world for good
Polkadot offers a solution to the interoperability problem of blockchain technology.
- Connecting the dots
By helping blockchains communicate with each other, Polkadot is driving decentralisation and the Web 3 movement.
- High energy efficiency
The low energy consumption of the Polkadot protocol makes the DOT token an attractive option for environmentally conscious investors.
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