Everything you need to know about Polkadot

What is a Polkadot

A multi-chain network aiming to connect different blockchain to a single unified network is a polka dot development. In a decentralized web, it is possible to have an interoperable function in the Polkadot development. The main difference between Polkadot and bitcoin is that the Polkadot Blockchain Technology can join networks together. The Polkadot design was by the ethereum co-founder Gavin Wood. Polkadot has gained attention in 2021 because of the significant rise in the value of DOT tokens. The Polkadot is being coded in Rust, C++, and Golang, making Polkadot accessible for a wide variety of users worldwide. There are altogether 10 million DOTs. The well-known projects in the Polkadot protocol are chainlink, angry, ocean protocol, and ox protocol.

Defining DOT:

The native token of a Polkadot network is DOT. The process of tying up DOT to add a new para chain is bonding. The key functions of the DOT are:

  • Governance of network:

The primary use of the DOT is the governance of the provided platform. This function includes deciding the fees for the network, upgrading the Polkadot platform, and adding & removing the parachains.

  • Operation of network: 

The operation of the Polkadot network is feasible through DOT that allows for a valid transaction to be possible.

  • To be bonded:

DOT acts as a bonding to connect a chain to Polkadot as a para chain. During a slot lease, DOTS will reserve itself when after the expiration of the lease it is possible to release it back to its original form.

Defining parachains:

Connecting blockchains in parallel with a single polka dot are the features of the parachain. Each parachain can be unique with varying designs and features. Parachains can optimize the business logic and interconnect with each other in a specific and logical way.

Defining part thread:

Parachains connecting to a polkadot using the method of pay-as-you-go model are nothing but the parathread. Blockchains can switch between themselves as a parathread or parachain depending on the availability of the parachains on the relay chains and the availability.

What is a relay chain:

Relay chain forms the heart of a polka dot development, the major chain responsible for the network” shared security and cross-chain interoperability between networks. The primary duty of the relay chain is to coordinate the system as a whole and to maintain a secure transmission.

Where to buy it?

It is easy to purchase the Polkadot in many cryptocurrency platforms like Binance, Huobi global, and many more tier 1 exchanges. The minimum investment amount in the Kraken platform is 1 DOT ( 1 Polkadot = 1332.18). The Polkadot development is a three-step process:

  • Step 1:

It is creating or logging into any of the secured cryptocurrency accounts. Creating or logging into an account allows the user to enter into the page with the header as the “buy crypto” option. By using either a credit card or debit card option, payment is possible.

  • Step 2: 

The payment screen option will be available where the asset’s purchase is possible in the “coin menu.” Choose the amount that you are up to spending on the Polkadot platform. The completion of this step is the buying of a wallet. Buying a cryptocurrency wallet enables the usage of private keys, which makes the storage of the coins more secure. 

For the highest level of security, cold storage is the best. There are two types of wallets, namely hot & cold wallets. The hot storage is nothing but desktop wallets, web wallets, and mobile wallets. The cold storage is the hardware wallets; these devices are readily available on the websites.

  • Step 3: 

This final step is to place a buy order by clicking the “ buy DOT “ option on the screen and complete the required identity verification. Some basic information is needed like name, address, DOB,  photo of the valid identity document, and a selfie to confirm the Identity document.

Advantages of Polkadot:

  • Cost: Deploying Polkadot is more economical than building a solo blockchain or building on an existing blockchain platform. The transaction fee is meagre when compared to ethereum.
  • Scale: Sharing of the multichain is available in the Polkadot network, the elimination of the bottlenecks on legacy networks that process the transactions one by one is unnecessary. Sharing of a multi-chain serves as one of the essential benefits and differences from all other cryptocurrency exchanges. 
  • Work jointly: Unlike all other networks, Polkadot offers cross-chain communication and interoperability options that enable users to transfer information smoothly. 
  • Easy up-gradation: Blockchain up-gradation is necessary to stay relevant and contemporary. But other blockchain technologies use “ hard folks,” which creates two separate transaction histories, and it often takes a month of work for completion. But polkadot enables forkless transactions, allowing blockchains to adapt quickly as better technology.
  • Pooled security: It is easy to secure a blockchain connecting a polkadot by a unifying security umbrella. The pooled security is valuable for small chain platforms that generally do not possess an effective security aid. Security aid is one of the main advantages of investing in a particular blockchain business.

Conclusion:

The value of the Polkadot Blockchain is increasing day by day because of connecting several chains into a single network and allowing transactions in parallel networks. The additional feature can be authorizing the transactions in a parallel network with a secure one. By bringing multi-specialized chains, Polkadot makes blockchain technology reach the fullest and give raises to new markets, paving the way for future decentralized economies.