Buy Polkadot

Introducing Polkadot

Polkadot is a next generation blockchain that sets out to establish an ecosystem of cryptocurrencies. It incentivises a global chain of computers to operate a blockchain and is thought by many to be one of the most innovative projects in the world of cryptocurrency. Polkadot's native coin (DOT) was initially conceived in 2016.

The DOT token became available in the summer of 2020 and was founded by Gavin Woods, co-founder of Ethereum. Woods invented the language used by developers when they write decentralised applications on Ethereum. Polkadot is still relatively new but has raised a significant sum of money from investors through the sale of DOT cryptocurrencies.

What makes Polkadot different?

Polkadot has several interesting technical features. For example, it operates two separate types of blockchains: a relay chain, the main network, and parachains, which are creative networks. While the transactions within the main network are permanent, the parachains can be customised for a variety of reasons before being fed into the main blockchain.

Once they have been fed into that blockchain, they benefit from the same level of security as the leading network. Thus, Polkadot transactions are always secure and can take advantage of the computing resources allocated to the main chain. However, users get the added benefit of being able to customise separate parachains for multiple uses.

How does Polkadot work?

Within the Polkadot network, three different types of blockchains exist. As mentioned, the relay chain is the primary channel that operates at great speed while new transactions are segregated from the validation process. The custom blockchains (parachains) then use the relay chain resources to validate the transactions. In the meantime, a separate type of blockchain, called a "bridge," allows the Polkadot network to engage with other blockchains. Eventually, Polkadot aims to interact with the other leading blockchains like Bitcoin, Ethereum and Cosmos.

At the heart of the relay chain is a hybrid proof of stake rule called "nominated". This rule allows anyone to stake DOT by putting the cryptocurrency into a special contract to perform a particular role. They can validate the data in parachain blocks while also voting on any proposed network changes, or they can act as a nominator by choosing trusted validators. They can also act as monitors (also called fishermen), reporting any adverse behaviour back to a validator. All these roles make them eligible to receive DOT rewards as well.

How is Polkadot governed?

When it comes to software development, Polkadot has various levels of governance. Those who have purchased tokens can propose changes within the network and reject or approve any major changes brought forward by others. These DOT holders will elect Council members, who are then responsible for determining which proposed changes are made. There is also a technical committee, composed of developers and analysts who are building Polkadot. They are allowed to make special proposals.