Polkadot (Dot) token is one of the hot tokens in recent times, attracting the attention of many investors. So what is Dot token, is it worth the investment?
Review Polkadot project
Polkadot is a Blockchain Platform. Polkadot (DOT) is a multi-Chain, heterogeneous and scalable technology that allows blockchains to connect to share data to form a decentralized network.
Polkadot’s vision is to create a “Decentralized Web”, where our identities and data will be controlled by ourselves, not by any organization or government.
In addition to the open-source community, behind Polkadot is the Web3 Foundation - one of the leading organizations in the Crypto space. The Web3 Foundation contributes financially and technologically to Polkadot.
What is Polkadot solution?
The idea of Polkadot consists of a Mainchain (Relay Chain), a Layer 2 expansion solution (Para Chain), and a bridge with other Blockchains (Bridges Chain). Inside:
Relay Chain: The Central Chain of Polkadot. It is responsible for connecting the Validates of Para chains. In detail, the Validators will Stake DOT above to protect the Network, transactions including network administration. The Transaction Fee on the Relay Chain will be higher on the Para Chain.
Para Chain: Is a solution to expand the network of Polkadot. Para Chain is not necessarily a Blockchain. It can be a Dapp or a Data Structure, as long as it can provide proof that can be validated by the Validators assigned to that Para Chain. Most of the computations happening on the entire Polkadot network will happen on Para Chain.
Bridges Chain: It can be envisioned as a bridge between Polkadot Network and other blockchains, providing interoperability between networks with each other.
What is the DOT token?
DOT is the Native Token of Polkadot Network. DOT with Polkadot is like BTC with Bitcoin, ETH with Ethereum.
When Polkadot Mainnet, out of a total of 10,000,000 DOTs were created on Genesis Block:
5,000,000 DOTs will be auctioned under Second Price Dutch Auction.
3,000,000 DOT will be distributed to the Web3 Foundation.
The remaining 2,000,000 DOT will be distributed later.
What is outstanding about Polkadot?
Here are some highlights of Polkadot:
- Onchain Governance
This is the same way Tezos is doing, which is Voting to vote on Update Protocol proposals.
- Nominated Proof-of-Stake (NPoS)
NPoS is quite similar to DPoS. Brothers lock their DOT, authorize a stake to a Validator to validate and add new blocks to the chain, then Share the block reward.
The key difference here is that the Validators will be randomly selected from the qualified ones and this will change several times per day.
- Para Chain
The design of Para Chains does not require it to be necessarily Blockchain. As long as it can provide verifiable evidence by the Validators assigned to it.
All Para Chains connect to Relay Chains via proof of stake on the Relay Chain. So the more Para Chains, the more secure and secure the Network.
Interactions on Para Chains are handled in parallel. So the transactions can be spread across Para Chains so that Polkadot Network can process more transactions at the same time.
The substrate can simply be understood as a framework that supports building Blockchain more easily.
The substrate is not part of Polkadot, but projects built with Substrate can run natively on Polkadot. Users can use Substrate to build new Blockchains now without waiting for Polkadot Launch Mainnet.
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