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The Polkadot cryptocurrency is a fairly young project that hit the top 5 of the world’s largest cryptocurrencies and gained considerable recognition. Polkadot is an innovative idea whose goal is to create a communication system between blockchains. It is to enable support of multiple chains within one network. If you want to learn more about Polkadot, we encourage you to read the article. If you decide to buy, you can do it by clicking the button below and registering a free account on the Binance exchange:
The history of the project began in 2015, when two former Ethereum executives – Gavin Wood and Jutty Steiner – founded Parity Technologies. The Web3 foundation also provided financial support. Initially, the group’s task was to develop node software for Ethereum. However, they withdrew quite quickly from this research to be able to fully focus on developing Polkadot and the Substrate project. The first effects appeared in November 2017, when the developers presented the first code.
The project could be further developed thanks to the ICO fundraiser – in 2017, developers raised $ 145 million, which was allocated to further research. The following year, two proof-of-concept algorithms started working, and a few months later the first parachain was deployed. From that point on, it could appear that the project was suspended. After more than a year, the creators ensured that “2020 is the year in which we can refine the last details and start moving in. In fact, it means launching the Polkadot network with the phased implementation of various functions. ” Ultimately, Polkadot was launched in May 2020, and in August of the same year, the possibility of transferring tokens was introduced.
Polkadot is to solve the problem of blockchain isolation, because in their current form they have little ability to communicate. This innovative design supports multiple blockchains thanks to a mechanism called sharding or parachain. This enables efficient processing of several transactions simultaneously. A special interoperable design allows information to be transferred between parachaines. An additional advantage is that the action of each parachaine can be tailored individually to the specific task. Moreover, the work on the whole system has also been made much easier – new features can be added to the project without creating hard forks, i.e. hard chain forks.
The structure of the Polkadot network consists of several elements. The central part is the Relay Chain, which is the main node through which the parachaines can cooperate. In case new users just want to try out Polkadot, they are working on alternative, “lighter” parathreads. The last part of the network are Bridges, which enable communication of Polkadot chains with other blockchains.
Different operators are assigned different functions. Nominators deal with staking, i.e. storing funds in a cryptocurrency wallet, which aims to ensure the safe functioning of blockchains. Nominators also choose Validators whose task is to stack tokens and approve evidence created by Collectors. The fourth group is the Fishermen, who observe the operation of the net and report possible abnormal behavior.
The use of Polkadot parachains is very extensive: from transaction chains, through identity chains, file storage or IoT (Internet of Things), to privacy chains.
Substrate is a special structure for building blockchains. This does not only apply to the Polkadot system – chains can also be created outside this structure. The role of the Polkadot network is to ensure communication and security between blockchains created using Substrate. This means that you can add and remove functions to parachains that are not the basic properties of Polkadot chains – for example smart-contacts known from Ethereum, ZK-snarks proposed by Zcash or UTXO transactions belonging to Bitcoin. Thank’s for providing this content to gielda-kryptowaluty.pl portal which is giving many interesting advices about cryptocurrencies.
DOT tokens appeared in 2017 with the start of the ICO collection. Thanks to the sale of coins, the developers obtained approximately $ 145 million for the development of the project. Half of the original tokens were lost due to an error in the Ethereum Paritys wallet – the funds were frozen and could no longer be recovered. However, this did not have a significant impact on the project itself.
In 2020, Polkadot enabled users to trade with other coins, and DOT was introduced to several dozen cryptocurrency exchanges. DOT is a multi-functional token – apart from carrying out transactions, it also allows for management, bonding and staking.
Due to its high turnover, the DOT coin has a very high market capitalization. Since its inception, Polkadot has been redenominated a hundred times, but this has not changed its value. DOT is available on the largest cryptocurrency exchanges such as Binance, Bitfinex and OKEx. It occurs in pairs, among others with such popular coins as Tether or Bitcoin. Currently, in early 2021, one Polkadot is worth around $ 35.