What Is Polkadot (DOT)?

Polkadot is an open-source sharded multichain protocol that connects and secures a network of specialized blockchains, facilitating cross-chain transfer of any data or asset types, not just tokens, thereby allowing blockchains to be interoperable with each other. Polkadot was designed to provide a foundation for a decentralized internet of blockchains, also known as Web3. Polkadot is known as a layer-0 metaprotocol because it underlies and describes a format for a network of layer 1 blockchains known as parachains (parallel chains). As a metaprotocol, Polkadot is also capable of autonomously and forklessly updating its own codebase via on-chain governance according to the will of its token holder community. Polkadot provides a foundation to support a decentralized web, controlled by its users, and to simplify the creation of new applications, institutions and services. The Polkadot protocol can connect public and private chains, permissionless networks, oracles and future technologies, allowing these independent blockchains to trustlessly share information and transactions through the Polkadot Relay Chain (explained further down). Polkadot’s native DOT token serves three clear purposes: staking for operations and security, facilitating network governance, and bonding tokens to connect parachains . Polkadot has four core components: * Relay Chain: Polkadot’s “heart,” helping to create consensus, interoperability and shared security across the network of different chains; * Parachains: independent chains that can have their own tokens and be optimized for specific use cases; * Parathreads: similar to parachains but with flexible connectivity based on an economical pay-as-you-go model; * Bridges: allow parachains and parathreads to connect and communicate with external blockchains like Ethereum.

Who Are the Founders of Polkadot?

Polkadot is the flagship protocol of Web3 Foundation, a Swiss Foundation with a mission to facilitate an open-source, fully functional and user-friendly decentralized web. Polkadot’s founders are Dr. Gavin Wood, Robert Habermeier and Peter Czaban. Wood, Web3 Foundation’s president, is the most well-known of the trio thanks to his industry influence as Ethereum co-founder, Parity Technologies founder and the creator of the smart contract coding language Solidity. Wood is also credited with coining the term Web3. Habermeier is a Thiel Fellow and accomplished blockchain and cryptography researcher and developer. Czaban is the former Technology Director at Web3 Foundation, with a wealth of experience across highly specialized fintech industries.

What Makes Polkadot Unique?

Polkadot is a sharded multichain network, meaning it can process many transactions on several chains in parallel (“parachains”). This parallel processing power improves scalability. Custom blockchains are quick and easy to develop using the Substrate framework and Substrate blockchains are designed to be easy to connect to Polkadot's network. The network is also highly flexible and adaptive, allowing the sharing of information and functionality between participants. Polkadot can be automatically upgraded without the need for a fork in order to implement new features or remove bugs. The network has a highly sophisticated user-driven governance system where all token holders have a vote in how the network is run. Teams can customize their own blockchain’s governance on Polkadot based on their needs and evolving conditions. Nominators, validators, and collators all fulfil various duties to help secure and maintain the network and eradicate bad behavior. At the end of 2021, Polkadot successfully concluded its first Parachain auctions. The Parachain auctions followed an un-permissioned candle auction system. The winning bid is the highest bid at the random moment the auction ends. Polkadot assigned the first five slots to the following auction winners: Acala, Moonbeam, Astar, Parallel and Clover. These projects will have their parachain slots locked in for 96 weeks, guaranteed by the DOT bidders committed as collateral. As customary on Polkadot, all projects had previously been battle-tested on its de-facto testnet Kusama.

How Many Polkadot (DOT) Tokens Are There in Circulation?

Following the network’s redenomination after a referendum on Polkadot, DOT balances increased by 100, so one old DOT was equivalent to 100 new DOT. This meant that the initial maximum supply of 10 million old DOT in August 2020 became 1 billion new DOT tokens. The redenomination was undertaken purely to avoid the use of small decimals and make calculation easier. While all balances were increased by a factor of one hundred, this did not impact the distribution of DOT or holders’ proportional share. Polkadot’s first initial coin offering (ICO) was held in October 2017, and the Polkadot price was $0.29, with 2.24 million tokens offered. The second ICO was held in July 2020, and the Polkadot price offered was $1.25, and 342,080 DOT tokens were sold.

How Is the Polkadot Network Secured?

The network uses an NPoS (nominated proof-of-stake) mechanism with validators and nominators.Nominators back validators with their tokens. These staked tokens maximize chain security by making it prohibitively expensive to misbehave. Validators are staked on the Relay Chain and confirm transactions coming from the different parachains. This unique validity scheme enables chains to interact with each other securely under the same rules, yet remain independently governed.

Where Can You Buy Polkadot (DOT)?

The top exchanges for Polkadot (DOT) trading are currently Binance, Huobi Global, OKEx, Coinbase, KuCoin and more. You can find others listed on the Polkadot’s markets page on CoinMarketCap. You can now also buy cryptocurrencies like Bitcoin and Ethereum directly by credit card in the fiat currency of your choice. To find out how, read more here. To check Polkadot price live in the fiat currency of your choice, you can use CoinMarketCap’s converter feature directly on the Polkadot currency page. Here are some other articles that you may be interested in: * What Is a Crypto Faucet? * What Are Crypto Debit Cards? * What Is Web 3.0? * What Is Yield Farming? * What Is Crypto Lending?

What tools does Nimbus offer for effortlessly monitoring Polkadot?

Nimbus provides a user-friendly tracking solution equipped with intuitive tools to monitor Polkadot effortlessly. These tools are specifically designed for user convenience, allowing individuals to stay seamlessly updated on the latest trends, prices, and information related to Polkadot. Users can also explore the world of cryptocurrency effortlessly while simultaneously tracking Polkadot prices. The platform also offers insights into profit and loss, providing a comprehensive experience without the complexity typically associated with monitoring cryptocurrencies.

How does Nimbus enable tracking Polkadot prices with profit and loss?

Nimbus facilitates the tracking of Polkadot prices with profit and loss through seamless integration with your crypto wallet for portfolio monitoring. By connecting with your crypto wallet, Nimbus provides a clear and comprehensive overview of various metrics, including profits, losses, revenue, expenses, return on investment (ROI), and other essential financial indicators. This integration ensures that users can analyze their cryptocurrency portfolio with precision, gaining valuable insights into their financial performance. With Nimbus, users can navigate the cryptocurrency landscape with a perfect blend of simplicity and sophistication, enhancing their ability to make informed investment decisions.

How does Nimbus analyze Polkadot, and what insights does it provide?

Certainly! Nimbus possesses a robust analysis tool that is adept at evaluating and interpreting Polkadot . The tool employs diverse strategies, including delving into metadata details, tracking marketplace data, and calculating performance metrics such as Return on Investment (ROI). Through these methodologies, Nimbus provides users with valuable insights into the composition and performance of their Polkadot. Users can gain a comprehensive understanding of their investment. The analysis tool ensures that users are equipped with the necessary information to navigate the cryptocurrency landscape with confidence and intelligence.

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DOT Market Statistics

  • Price USD

    $7.42
  • Market Cap

    $10,673,967,456.54
  • Total Volume USD

    $224,597,788.87
  • Total Supply

    1,437,953,431.37 DOT
  • Circulating Supply

    1,437,953,431.37 DOT
  • Fully Diluted Market Cap

    $10,673,967,456.54
  • Socials

  • Official links

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