What is Polkadot?
Polkadot is an open-source sharding multichain protocol that facilitates the cross-chain transfer of any data or asset types making a wide range of blockchains interoperable with each other. On January 21, 2021 Polkadot price was $16.06 USD with a 24-hour trading volume of $4,741,368,823 USD. Polkadot was up 2.88% in the previous 24 hours.
What is Polkadot?
The Polkadot protocol connects public and private chains, permissionless networks, oracles and future technologies as well. This allows independent blochains to trustlessly share information and transactions through the Polkadot relay chain. Its native DOT token serves three clear purposes: providing network governance and operations, and creating parachains (parallel chains) by bonding.
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Where can you buy Polkadot and how many coins are in circulation?
The top exchanges for Polkadot (DOT) trading are currently Binance, Huobi Global, HBTC, OKEx and Binance.KR. Presently, Polkadot has an allocation of 1 billion DOT tokens. This is folloed by the network’s redenomination from an initial supply of 10 million from back in August 2020.
The change in denomination,i.e. redenomination, was voted on by the community of DOT holders. The community decided between four options, to change the DOT denomination by a factor of ten, one hundred, one thousand, or not at all. The end result was to change the denomination by a factor of one hundred.
All balances were increased by a factor of one hundred; however, this did not impact the distribution of DOT or holders’ proportional share.
Why is Polkadot unique?
Polkadot has four core components:
- bridges: allow parachains and parathreads to connect and communicate with external blockchains like Ethereum
- parachains: independent chains that can have their own tokens and be optimized for specific use cases
- parathread: like parachains but with flexible connectivity based on an economical pay-as-you-go model
- relay chains: this is the motor behind the scenes of Polkadot: it helps create consensus, interoperability and shared security across the network of different chains.
Polkadot is a sharded multichain network: this means that can process many transactions on several chains in parallel (“parachains”). This parallel processing power improves scalability. The network has a highly sophisticated user-driven governance system for additional security. Communities can customize their blockchain’s governance based on their needs and changing conditions. Various duties are fulfilled by nominators, validators, collators and fishermen: they help secure and maintain the network and eradicate bad behavior.
How secure is Pokadot network?
The network uses the NPoS (nominated proof-of-stake) mechanism to select validators and nominators and to maximize chain security. Its mass interoperability through a set of common validators helps to secure its multiple blockchains. Additionally, it also allows them to scale their transactions by spreading their data across many parachains.
Who are the people behind Polkadot?
Polkadots founders are founders are Dr. Gavin Wood (Ethereum co-founder, Parity Technologies founder), Robert Habermeier (a Thiel Fellow and a blockchain and cryptography researcher and developer) and Peter Czaban (Web3 Foundation’s Technology Director), who are part of the Web3 Foundation. Web 3 is a Swiss Foundation whose aim is to facilitate a fully functional and user-friendly decentralized web, as an open-source project..
