What is Polkadot Coin (DOT)

polkadot coin

Polkadot Coin

Polkadot (DOT) – Definition

Polkadot is an open-source multi-chain sharding protocol that allows cross-chain transfers of any type of data or assets, not just tokens, allowing a large number of blockchains to interoperate with each other. The Polkadot protocol connects both public and private chains, permissionless networks, oracles, and future technologies, allowing these independent blockchains to share information and transactions securely and reliably through the Polkadot relay chain. Polkadot’s native token, DOT, has three clear goals: to provide network governance and operations and to create parachutes through partnership.

History (DOT)

Polkadot Coin (DOT) – History

Polkadot is a public blockchain network whose purpose is to serve as a connection point between different block networks. This project dates back to the end of 2016 when Gavin Wood, co-founder of Ethereum and founder of Parity Technologies, officially presented the White Paper for this initiative. Among its main characteristics, in addition to the proposal to serve as a bridge between the public and private networks, thus allowing the portability of information, is the fact that it works as a network that uses a Proof of Staking (PoS) consensus algorithm. It is unique that DOT token owners can operate as validators of the network and can cast their votes to also make decisions about the changes and projects that are proposed. After a year of publicizing the project in circles of interest, in mid-2017 Wood and the co-founders of the project created the company Web3 Foundation, which would manage the project together with Parity Technologies to coordinate each of the associated technical and economic aspects.

Polkadot Coin (DOT) – Economy

CoinMarketCap’s current ranking is 10th, with a market cap of $ 29,376,213,957 USD. It has a circulating stock of 987,579,315 DOT coins and the maximum stock is not available. The main changes to trade on Polkadot are currently Binance, AAX, OKEx, CoinFLEX and. You can find other listings in ours.

How Polkadot Coin Works

One of the many aspects of this cryptocurrency that most attracted the attention of the proposal has to do with the variability in the simultaneous handling of updates and information. As described in its founding document, the network has the necessary support to be able to process multiple operations at the same time and distribute information among the different networks involved, thus guaranteeing the security and anonymity of the processes. To achieve this, the Polkadot system has three fundamental components:1- Relay chain: The main network that appears as the axis of the system, where the exchange of operations between the participating networks takes place.2- Parachains: Name by which blockchain networks that work in parallel are defined, which in turn serve as bidirectional channels for the main information flow.3- Bridges: these serve as a connection point for other networks with their own consensus mechanisms, such as Ethereum, among others. Now, regarding the characteristics of the DOT token, the Polkadot foundation document highlights the following 3 main functions:1- It works as a governance mechanism under a guarantee fund system (PoS).2- It is used as an incentive to reward those who participate in the processing of blocks.3- Serve as a mechanism for the creation of new blockchain networks that work in parallel with the central network and for the establishment of bridges.

Polkadot – Wallet

A DOT address is a form of unique identification for each of the users within the network, which is used to exchange (send and receive) cryptocurrencies quickly and easily. In the world of cryptocurrencies, addresses work in exactly the same way as in the traditional financial system, both for sending and receiving money transfers. Which means it works like a bank account.

Polkadot – Transaction

An exchange made with DOT is simply a transfer of value made between two wallets, which is recorded on the blockchain. To send the money, the emissary must sign the transaction with his unique private key to prove that he is the owner of said funds.

Polkadot – Mined

Unlike Bitcoin, this cryptocurrency cannot be mined; At the same time, you need to earn money by accumulating. Bases: don’t download the official card app on your computer, then download or internal blockchain, deposit some coins and sheets or rolling software. Finally, depending on the amount of money we deposit, we will be rewarded accordingly. Or the problem is that with Polkadot it changes a bit. To begin with, we have two types of network participants:1- Validators: depending on what you do, as long as you don’t suggest me, and validate the blocks, create them.2- Numbers: this group is based on name validators. Validators only get more rewards, but nominees can win too, and in an even easier way.If you want to be a validator, you have to be willing to invest a large sum of money. You need very expensive hardware dedicated exclusively to this, you also need some experience and no such use. Although it is an alternative to make money with this cryptocurrency, a reality that is not for everyone.If you want to become a nominator, you must have a minimum DOT value. This varies by pace or as determined by network conditions.

Polkadot – Privacy

Cada una de las transacciones realizadas se almacena en un “libro” público llamado blockchain, que nos permite investigar el historial de una criptomoneda para evitar el robo, copia o cancelación de transacciones.

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