Polkadot (DOT): What is Special About Polkadot Crypto?

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Polkadot is already thought to be one of the most innovative cryptocurrency projects. It has gained great attention from the whole community of investors. Let’s see what all the hype is about.

What is Polkadot?

Polkadot is a crypto project that is considered to be a next-generation blockchain. It is a decentralized multi-chain network that is built by using Substrate. This is a platform that allows the creation of interoperable and custom-built blockchains consisting of custom or pre-built components.

It was founded by Dr. Gavin Wood, whose name is widely spread in the crypto space. He was a chief training officer and main developer of Etherium, for which he developed a smart contract programming language. He left Ethereum with a wish to build a more sharded blockchain, and then, after a few months, he came back with Polkadot.

The team behind the project has the aim to promote a heterogeneous multi-chain framework. They want to provide a fully decentralized network where users will be in control by providing an interoperability protocol that uses segments or shards for scaling the network. 

Polkadot’s team wants to solve problems with such limitations as scalability and security that blockchains nowadays have. The blockchain is created to connect to private and public chains and oracles.

Its native coin is called DOT, its smallest unit is Planck. It is worth noting that, unlike other cryptocurrencies, DOT is limitless in supply. This is intended to incentivize the network and dynamically adjust it according to the level of user participation in staking.

Why is Polkadot Crypto Special?

  • Polkadot is considered to be a unique blockchain since it provides scaling through sharding. It has federated central relay chain security, adaptable consensus, and multi-chain interoperability. 
  • It is also different from other blockchain solutions in providing parallel blockchains (parachains), which are achieved by executing transactions in separate shards. This feature gives the opportunity to greatly increase throughput, while cross-chain functionality allows data or assets of any type to be transferred between shards.
  • Polkadot removes the wall between projects, enabling interoperability with platforms like Ethereum. It eliminates the need to choose only one isolated blockchain network
  • Even before being ready to deploy on the network, it is possible to start working on a blockchain. This is because Polkadot is built on the Substrate blockchain framework, which means that other Substrate-based projects can quickly and easily deploy custom chains.
  • Polkadot blockchain doesn’t fight against or compete with other blockchains but complements them.
  • It isn’t a smart contract itself, but it provides decentralized app (dApp) developers with a framework to integrate smart contracts into an interoperable network with a wide range of features. It leads to the largest increase in the number of active core protocol developers.
  • It doesn’t have limits in supply.

Why is Polkadot Valuable?

Polkadot blockchain is currently considered to be one of the leading staking platforms. It provides rewards of more than 13% each year, having a staked value of over $20 billion. More than 50% of eligible tokens are staked with a market cap of over $30 billion.

Is it Worth Buying Polkadot?

Polkadot has lots of benefits and advantages for developers, entrepreneurs, ordinary users and, of course, investors. 

In the cryptocurrency space, staking DOTs is now considered to be one of the most valuable impetuses. On average, stakers of DOT earn 10% every year.

Predictors believe that thanks to the stable and reliable work of the blockchain, Polkadot’s development has great potential. Also, what is important, is the blockchain is one of the most original innovations in the crypto world. The next few months will be critical in evaluating the actual possibilities of the network.

SOURCEBitstamp

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