Polkadot, often called Polkadot Coin, is an exciting new blockchain project which aims to provide a framework for private and public blockchains to interoperate. It’s the brainchild of Gavin Wood, Ethereum co-founder and Parity founder, and Dr. Gavin Wood, former CTO of Ethereum and CTO of Parity Technologies Ltd. The Polkadot coin ICO took place on October 15th 2017 and raised $145 million (or 155,072 ETH) in just 5 days! So what exactly is Polkadot? And what’s so special about it?
How does it work?
Polkadot is a new cryptocurrency that uses a unique consensus mechanism to validate transactions. Unlike other cryptocurrencies, which use Proof of Work or Proof of Stake, Polkadot uses a system called Proof of Authority. This means that instead of miners verifying transactions, a group of pre-selected validators does so. This makes Polkadot more energy efficient than other cryptocurrencies and allows for faster transaction times. Polkadot also has a built-in governance system that allows users to vote on changes to the network. These votes are weighted based on each user’s stake in the coin, meaning those with larger stakes have more say in how the coin operates. Additionally, once per year there will be a scheduled hard fork where all stakeholders can agree to make any desired modifications to their network parameters. The PoA validation process will then execute these agreed upon changes automatically. Currently, this voting process is not completed yet because the codebase is still being tested. However, once launched Polkadot will be one of the most decentralized blockchains out there because only 21 validators need to come to an agreement in order for changes to happen.
The primary goal of this project seems to be offering a blockchain solution that solves scalability issues while maintaining decentralization (i.e., not just relying on one giant computer) by using sharding technology.
What’s so special about Polkadot?
Polkadot is a new cryptocurrency that promises to improve upon some of the shortcomings of existing cryptocurrencies like Bitcoin. For one, Polkadot is designed to be more scalable than Bitcoin, meaning it can handle more transactions per second. Additionally, Polkadot is intended to be more user-friendly than other cryptocurrencies, with a focus on ease-of-use for both developers and users. Finally, Polkadot is intended to be more secure than other cryptocurrencies, with built-in mechanisms to prevent certain types of attacks. One key advantage of Polkadot over other cryptocurrencies is its ability to transfer funds from different blockchains into a universal token called DOTs. Essentially, this means that if you have BTC and want to use ETH for something (or vice versa), you will be able to exchange your BTC or ETH into DOTs which can then be converted back into either BTC or ETH. The important thing about Polkadot is that it’s designed to make interchain communication between all sorts of chains much easier than before. It does this by reducing barriers to cross-chain validation and transferring tokens across chains in parallel – not serially – without interfering with transaction processing on each chain, but simply updating the ledgers.
Who is behind this project?
Gavin Wood, one of the co-founders of Ethereum, founded Polkadot. The project is backed by the Web3 Foundation, a non-profit organization that promotes decentralized technologies. Polkadot has the potential to become a major player in the cryptocurrency world because it is designed to be more scalable and efficient than Ethereum. The project is still in its early stages, but it has already attracted attention from some big names in the crypto space. One of the most notable backers is billionaire Mike NoVo Gratz, who predicted last year that the biggest financial event for 2018 would be cryptocurrencies. According to reports, he invested 10% of his wealth into crypto earlier this year and recently said he now believes Bitcoin will hit $40K before we see any kind of substantial pullback. In order to avoid pulling back at all, the currency will need to find a way to accommodate more transactions without slowing down. That’s where Polkadot comes in; if it lives up to its promises, Polkadot could provide just what Bitcoin needs in order not only grow but also stay competitive against new altcoins like Litecoin and Ripple XRP.
Summary & Challenges to be Faced
Polkadot is a new cryptocurrency that has the potential to revolutionize the way cryptocurrencies are traded. However, there are some challenges that need to be addressed before it can truly become a force to be reckoned with. For one, its founder, Gavin Wood, needs to continue to build trust with the community. Secondly, the Polkadot team needs to overcome the challenges associated with scaling. It’s true that all cryptocurrencies are facing these same challenges, but this problem is especially acute for Polkadot because of its heavy focus on governance and consensus. Finally, they need to improve their security measures and find ways to ensure nodes cannot be controlled by attackers without being detected. These issues should not dissuade investors from getting involved in this project though; if all goes well and it lives up to expectations, it could really change the game for future blockchain projects and provide them with much-needed competition!
How do I buy some DOT?
You can buy DOT on a cryptocurrency exchange like Kraken or Binance. DOT is not yet available on Coinbase, but this could change in the future. To buy DOT, you’ll first need to deposit USD or another supported currency into your account on the exchange. Then, you can place an order to buy DOT using the exchange’s trading interface. The DOT cryptocurrency is a promising new digital asset with a lot of potential. I believe it has a bright future and I’m excited to see how it develops. There are many challenges that they will have to overcome such as scaling issues.
The team behind Polkadot are talented individuals who are passionate about what they do and have a strong track record so I am confident that they will be able to address these challenges successfully.
In conclusion, if you’re looking for an investment opportunity then Polkadot might be worth considering since there is huge potential for growth and adoption by more people in the near future! What should I read next?