Polkadot refers to itself as a next-generation blockchain protocol which connects multiple blockchains by unifying them into one network.
It is a sharded protocol that enables blockchain networks to operate together seamlessly.
Polkadots history starts with Ethereum, namely with the Co-founder of Ethereum, Dr Gavin Wood. Dr. Wood is from Great Britain and holds a PhD in Software Engineering.He founded the Web3 Foundation, a nonprofit organization focusing on decentralised internet infrastructure and technology.Polkadot, his new baby allows each developer to create their own blockchain that can intedact with other sidechains.Dr. Gavin Wood has given Polkadot a legitimate feel to it.
Polkadot utilizes NPoS (Nominated Proof of Stake) as its algorithm for validation. Holders are rewarded for staking their DOT in the protocol in exchange for risking their holdings for the validation of the network.Online centralised exchanges Kraken, Bitfinex and even Binance offer Polkadot staking and since the rise of Defi staking is in everyone's mouth. This is why this Crypto has taken the Coinmarketcap by storm and is now the most staked Cryptocurrency.
As the Block Research Team shows in this graph almost 3 Billion Dollars are staked. This is about half of the market capitalisation. What this means is that nearly 3 Billion UsD are locked away and not available on the market. After a rise to nearly 7UsD/$Dot it is now worth 5.4UsD.
Future: the parachain auction
In the beginning of next year a parachain auction will be held for projects that want to participate. They obtain “leases” for 6 month of up to 2 years.To win, you need the most Polkadot’s DOT Tokens. If a project decides that they would like to bid for an upcoming parachain slot but believe they do not have the required capital for this, they can create an Initial Parachain Offering using a crowdfunding module to accept DOT loans from any DOT holder. The current goal is for Polkadot to support up to 100 parachains.
I picked Polkadot as my first Crypto-Pick to show that the fun with $Dot has just begun. If Polkadot will continue to rise into the Crypto Heaven sphere of Ethereum the future will have to show.
This is no financial advise.
Suggestions,advice or if you want your coin picked next please just post in the comments below.
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Chris aka Goodsoul