Polkadot : what is it, how does it work and what is the price of DOT

What is Polkadot (DOT)?

Polkadot is an open source protocol developed to be accessible to everyone whose goal is to enable the evolution of blockchain technology. Polkadot's objective is to introduce interoperability between different blockchains, allowing them to exchange data and thus be able to develop more powerful services and applications.

Like any other blockchain project, Polkadot has its own token called DOT. Polkadot's idea is to simplify the design for the creation of applications, products and services between different blockchains.

History and origins of Polkadot

Polkadot is born from the hand of Gavin Wood, one of the initial developers of Ethereum. Wood rose to the same level as Vitalik Buterin (Ethereum) and is the developer of the Solidity programming language.

Wood's idea was to start a blockchain project capable of overcoming the weaknesses of Ethereum. In particular, its scalability and enabling new cross-chain or inter-chain operating structures.

By June 2016, Wood had already started working on this new project, and in October of the same year, he presented the first version of the Polkadot whitepaper to the world.

Polkadot Characteristics

• Polkadot (DOT) was designed to function as a data processing chain, to receive, process and send information from other blockchains. In addition to creating your own strings.
• It does not have the option of smart contracts so it does not allow other tokens, apart from its own.
• It is simple and easy, safe and fast.
• Features like EdgeWare or Ink collaborate in this blockchain. Not forgetting Moonbeam, which provides tools for programmers.
• It has an organization system that is made up of validators, nominators, classifiers and fishermen and that make up a development protocol.

How does Polkadot work?

Polkadot has a very particular operation based on four fundamental elements: validators, nominators, classifiers and fishermen. It is important to understand the role of each element to understand how Polkadot works.

Validators

The validators are in charge of finalizing the information blocks in the network and carry out a great load within the system. These validators qualify within the system, by establishing a significant link (DOT), which gives the network the character of Delegated Proof of Stake (DPoS).Validators receive blocks from Collators, which propagate selected blocks to subgroups of parachain validators, and finalize the blocks in the relay chain through a deterministic selection process and a final round of validation validation.

Nominators

The operation of the nominators is based on the selection of reliable validators by placing risk capital that allows them to make that selection. His role helps strengthen the joint security of the base chain of the Polkadot platform.

Classifiers

Collators sit on top of parachain blocks and provide proofs based on the block's transition state to validators.So classifiers help validators produce parachains and maintain a full node for a particular parachain; which means that they retain all the information necessary to be able to create new blocks and execute in the same way that miners do on Proof-of-work blockchains.

Fishermen

Anglers are independent of the block verification process and look for malicious behavior on the network that they report back to validators. They seek substantial one-time rewards by proving that a related party acted maliciously outside the set of rules.

Advantages and disadvantages of Polkadot

It is important to analyze and weigh the characteristics based on our objectives and goals to understand whether or not the cryptocurrency fits our needs. Below is a list of the advantages and disadvantages of Polkadot (DOT).

Advantages of DOT Cryptocurrency

• The main advantage of Polkadot is the ability to link blockchains with each other.
• It has a high speed for transactions such as reservations, smart contracts or the exchange of information.
• The Polkadot system could incentivize a wave of innovative new blockchain systems.
• The bridges, which assume the function of providing a communicability response, guarantee excellent interoperability.

DOT Token Disadvantages

• Polkadot as a cryptocurrency is not in limited supply
• The project is still being perfected

Polkadot projection

To analyze the future projection of Polkadot and its DOT token, it is necessary to analyze the historical course of its price. It is possible to observe that Polkadot maintained an uptrend beyond small ups and downs.

However, its behavior in the market cannot be fully established, since it tends to oscillate and fluctuate frequently. It is a network that has a promising future, mainly because it solves specific problems of blockchains.

Polkadot Argentina - Frequently Asked Questions

What does Polkadot do?

Polkadot is based on a relay mechanism that facilitates authenticated transactions from one blockchain to another.

What project does Polkadot have?

Like any other blockchain project, Polkadot has its own token called DOT.

Who is behind Polkadot?

Polkadot is born from the hand of Gavin Wood, one of the initial developers of Ethereum. Wood came to be on the same level as Vitalik Buterin.

How many tokens does Polkadot have?

Polkadot has 1 billion DOT tokens, initially with an initial maximum supply of 10 million in August 2020.

What is Polkadot's all-time high?

Polkadot price broke the $50 barrier and hit an all-time high of $51.47.

When was Polkadot created?

The creation of Polkadot began in June 2016 and in October of the same year the first version of the Polkadot whitepaper was presented to the world.