What is Polkadot (DOT)?

What is Polkadot (DOT)?

By chris04 | Crypto faucet | 6 Mar 2021


What is Polkadot (DOT)?

Polkadot is a next-generation blockchain, capable of connecting multiple specialized chains into a single universal network.

Therefore Polkadot aims to overcome the drawbacks of individual blockchains, i.e. the impossibility of communicating with each other. The introduction of interoperability between different Blockchains could lead to the exchange of data with more powerful applications and services than those created up to now.

The Polkadot protocol was created by the brilliant mind of Gavin Wood, co-founder of Ethereum, who together with a work team concentrated on creating a protocol that makes security, scalability, interoperability and innovation its strong point.

But how does Polkadot work?

A single blockchain in the Polkadot ecosystem is called parachain (parallel blockchain), while the main chain is called Relay Chain, both entities can easily exchange information at any time. Anyone can launch their own parachain via Substrate, a framework for creating cryptocurrencies and decentralized systems. Created and connected to the Polkadot network, the customized parachain becomes interoperable with all the other parachains on the network.
Data protection and validation through these different parachains is performed through network validators which ensure that transactions can be distributed across multiple parachains improving the scalability of the protocol.

How to Stake Polkadot?

Staking Polkadot is quite simple, from this week it is also possible to do it through the Legder Live, but be careful,
Polkadot's approach is to reward honest stakers while bad stakers, the inactive ones, can lose the whole stakes.
Currently the rewards on Polcadot are around 13% per year, you can check them at https://www.stakingrewards.com/earn/polkadot

 

Disclaimer: This article reflects its author’s opinion only and is not financial advice! 

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chris04
chris04

Enthusiastic about crypto assets since 2017 and youtuber


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