In this article, VakaFx shares to everyone all information about Dot token Price, Chart and Marketcap.
What is Polkadot?
Polkadot (DOT) is a Blockchain Platform. Polkadot (DOT) is a multi-Chain, heterogeneous and scalable technology that allows blockchains to connect to share data to form a decentralized network.
Similar to Cosmos Network, Polkadot (DOT) focuses on solving two main problems of Blockchain: Interoperability and scalability of the network.
Polkadot (DOT) 's vision is to create a "Decentralized Web", where our identities and data will be controlled by ourselves, not by any organization or government.
Polkadot is an open-source project and anyone can freely contribute to the development of the platform.
In addition to the open-source community, behind Polkadot is the Web3 Foundation - one of the leading organizations in the Crypto space. The Web3 Foundation contributes financially and technologically to Polkadot.
Besides, the Web3 Foundation is also working with groups interested in developing additional implementations on the platform such as Core-Polkadot (Collator Nodes, Validator Nodes, Relay Chain), Ecosystem (Block Explorers, Node Explorers, Wallets ).
What does Polkadot (DOT) solve?
Here are the general problems of existing blockchains that Polkadot (DOT) will solve:
- Scalability is limited
Examples of Bitcoin and Ethereum - two Single-Blockchains with top adoption.
The average transaction speed per second on the network also stops at two numbers, while this figure in VISA is 24,000 - 40,000. Is it possible when the vast majority of users switch from VISA to Bitcoin or Ethereum's Blockchain?
Blockchain in general is still new to the vast majority of users. It all needs to be simplified so that people can use it the way we use the Internet, apply it to work, and daily life.
- Low interoperability
Example: A owes B 1Bitcoin, B wants A to repay it with Bitcoin, but A only has ETH. A must transfer ETH to the exchange to sell ETH and buy BTC, then transfer BTC to B ...
The process may be simpler, in fact, but it is still quite complicated and costly in both time and money.
What is Polkadot (DOT) solution?
The idea of Polkadot (DOT) consists of a Mainchain (Relay Chain), a Layer 2 expansion solution (Para Chain), and a bridge with other Blockchains (Bridges Chain). Inside:
Relay Chain: The Central Chain of Polkadot. It is responsible for connecting the Validates of Para chains. In detail, the Validators will Stake DOT above to protect the Network, transactions including network administration. The Transaction Fee on the Relay Chain will be higher on the Para Chain.
Para Chain: Is a solution to expand the network of Polkadot. Para Chain is not necessarily a Blockchain. It can be a Dapp or a Data Structure, as long as it can provide proof that can be validated by the Validators assigned to that Para Chain. Most of the computations happening on the entire Polkadot network will happen on Para Chain.
Bridges Chain: It can be envisioned as a bridge between Polkadot Network and other blockchains, providing interoperability between networks with each other.
What is the DOT token?
DOT is the Native Token of Polkadot Network. DOT with Polkadot is like BTC with Bitcoin, ETH with Ethereum.
When Polkadot Mainnet, out of a total of 10,000,000 DOTs were created on Genesis Block:
- 5,000,000 DOTs will be auctioned under Second Price Dutch Auction.
- 3,000,000 DOT will be distributed to the Web3 Foundation.
- The remaining 2,000,000 DOT will be distributed later.
What is outstanding about Project Polkadot (DOT)?
Here are some highlights of Polkadot:
- Onchain Governance
This is the same way Tezos is doing, which is Voting to vote on Update Protocol proposals.
- Nominated Proof-of-Stake (NPoS)
NPoS is quite similar to DPoS. Brothers lock their DOT, authorize a stake to a Validator to validate and add new blocks to the chain, then Share the block reward.
The key difference here is that the Validators will be randomly selected from the qualified ones and this will change several times per day.
- Para Chain
The design of Para Chains does not require it to be necessarily Blockchain. As long as it can provide verifiable evidence by the Validators assigned to it.
All Para Chains connect to Relay Chains via proof of stake on the Relay Chain. So the more Para Chains, the more secure and secure the Network.
Interactions on Para Chains are handled in parallel. So the transactions can be spread across Para Chains so that Polkadot Network can process more transactions at the same time.
The substrate can simply be understood as a framework that supports building Blockchain more easily.
The substrate is not part of Polkadot, but projects built with Substrate can run natively on Polkadot. Users can use Substrate to build new Blockchains now without waiting for Polkadot Launch Mainnet.
What DOT is used for in Polkadot's ecosystem?
Here are the three main functions of DOT in the Polkadot ecosystem from the user's perspective:
On Governance: “DOT Holders Control Polkadot's Future”. In addition to rewards from Staking, DOT Holders manage special events like protocol upgrades and bug fixes.
Used as a reward for Staking activities: DOT Token will be considered as a reward for those dedicated to maintaining network security, ensuring the network runs smoothly.
Transaction Fee on Relay Chain and Para Chains.
How to mine Polkadot (DOT)?
You cannot mine DOT using miners like Bitcoin and Ethereum.
The Future of Polkadot (DOT)
Some projects are implementing integration with Polkadot:
- Oracle Chains: Chainlink
- Data curation networks: Ocean Protocol
- Smart Contract Chains: Edgeware
- Financial Chain: ChainX, Katallassos
- Payment Chains: Blink Network
- Bridge to Ethereum Network: Allows Ethereum Smart Contract to interact with Polkadot.
We can see that quite a few projects are working on integrating with Polkadot as well. In the Roadmap, the team hopes to launch the Mainnet by the end of 2019 with Relay Chain and some Para Chains.
Polkadot's model is quite simple and popular. As more projects are connected to Polkadot's network, the need to buy to stake, use DOT in Polkadot Network will also increase, making the value of DOT also increase.
In the short term, the token price can be greatly influenced by investor sentiment and expectations for the project.
Ecosystem development: Web3 Foundation, open-source community, projects such as Chainlink, ChainX ...
Technology development: Parity, Web3 Foundation, open-source community.
Polkadot's ecosystem is still quite small when compared to competitors in the same segment as Cosmos or Quant.
Hopefully, through the last article, you have an overview of Polkadot Network and DOT Token. If you have any questions, please leave a comment, we will respond as soon as possible.
Follow our official channels for up-to-date the latest information:
- Website: https://vakafx.com
- Email: [email protected]
- Telegram: @vakaxasupport