The cryptocurrency boom in 2021 alone has helped capture the $1 trillion market cap. It is not surprising anymore, how Bitcoin or any other altcoins like Ethereum, Litecoin and so many others are breaking their all-time-high records every other day!
Talking about altcoins, the co-founder of Ethereum, Gavin Wood, introduced us to yet another altcoin, Polkadot (DOT) in 2020. Within the first year of its introduction, Polkadot was deemed one of the most successful cryptocurrencies of 2020! How did that happen? What are the facts that you should be aware of? Let us take a deep dive into the Polkadot ecosystem.
What is a Polkadot?
To understand Polkadot, let us first understand what is Blockchain. Blockchain is a database that allows multiple users to record and make changes in it. Once the data is entered, it cannot be removed or changed. The data can only be added to the blockchain once the majority of the participants provide the consensus to confirm the authenticity of the data with the process called ‘mining’. A new block is generated once the block is deemed authentic by the network. After which it gets added to the most current state of the blockchain.
To read more on the blockchain, click here.
Polkadot, on the other hand, signifies the next generation of blockchain networking. It provides a platform that helps link several blockchains into one combined or united network. The broader vision behind Polkadot is to give individuals behind the web an opportunity that precedes the internet monopoly. The Polkadot networking is built on the previously groundbreaking results of blockchain while offering various other fundamental advantages to its users.
The two main features that separate Polkadot and make it future-ready is its scalability and easy-to-upgrade feature. It allows blockchains to transfer data across one another and also help multiple chains to be functional within a single network. The Polkadot project is an open project from the house of Web3 Foundation. The organization is co-founded by Gavin Wood, who also previously administered the Ethereum blockchain.
The main aim of the Polkadot ecosystem is to speed up public and private blockchain communications. The DOT cryptocurrency captured a whopping $5 million market cap within the first two weeks of it being listed as a coin.
Buy your first Polkadot on CoinDCX Go!
Why is it important?
Developers who are building newer blockchains within the decentralized systems have to currently build everything from the ground up. That means using up resources, time and labour into building a blockchain rather than putting that effort into building value upon a blockchain. The main purpose of the Polkadot is to provide the base, upon which the developers can build value.
One of the main reason why Polkadot has claimed its rank is because of its parachains. What is a parachain? A parachain is a simplified version of the blockchain, which attaches itself to a relay chain. Through which they provide the security provided by the relay chain, rather than providing any of its own. The relay chain is called so because it does not only provide security to the parachains but also ensures the safe passage of messages in between the parachains.
The number of parachains that one relay chain can incorporate is limited. To take a place within the relay chain, the parachains had to go through slot bidding. It is similar to how auctions happen but differs because here, ones who have put in their bid the earliest gets a higher chance to get the slot than the one who has put in their bids later.
Click here to follow the bidding roadmap.
Facts about Polkadot:
|
|
|
|
|
|
|
|
|
|
Does Polkadot have a Cryptocurrency?
Yes, the DOT is a cryptocurrency of the Polkadot ecosystem. The cryptocurrency provides its holders with a chance to vote when any coding change is proposed. Besides, the DOT crypto also gets automatically updated when a consensus is reached.
Start investing in Polkadot:
Investing in top cryptocurrencies like Polkadot crypto is easy with CoinDCX Go! All you have to do is:
- Download the app.
- Log in or Sign up.
- Transfer your INR funds.
- Buy DOT!
It is that easy!
For a detailed Step-by-Step guide, click here.
Is Polkadot (DOT) a good investment in 2021?
Polkadot has shown great potential since its listing in 2020. The unique nature of the functions that Polkadot provides makes it one of the most important cryptocurrency to look out for.
If you want to invest in Polkadot and want to include a futuristic coin at the best price, the time is now. The DOT has shown steady growth since the beginning of 2021. The Polkadot crypto is expected to increase in value and surpass Ethereum while also XRP and Litecoin’s value. Thus, 2021 is considered to be the best time to invest in Polkadot by many top traders and investors.
What will Polkadot be worth in 2025?
According to Digital Coin Price, Polkadot will be worth $113.39 in 2025, rising to around $160 by 2028.
Source: Walletinvestor.com
Is Polkadot a good investment?
Among the newly introduced altcoins in the cryptocurrency space, Polkadot is one of the best because of its unique quality to allow multiple chains to work simultaneously. The ability of parachains, which can also be found within the Ethereum blockchain is what helped Polkadot grow rapidly and take a stand within the top-ranking projects.
Learn more about DOT on Polkadot decoded.
0 comments
Write a comment