Polkadot is an open source blockchain platform with a cryptocurrency that allows distributed computing. This network uses a proof of stake consensus algorithm to validate transactions. It uses the Blind Assignment protocol for Blockchain Extension (BABE) and is derived from Ouroboros. This protocol was adapted by the Ethereum co-founder Gavin Wood and was developed by the Web3 Foundation with initial implementation by Parity Technologies.
Polkadot’s first initial token offering sale closed on October 27, 2017 and raised a total of 485,331 ETH.
Polkadot is something different, it’s the first layer zero solution blockchain platform. Polkadot is designed to connect all blockchains together. Its goal is to solve the problem of inoperability between blockchains. It makes it possible to create and connect blockchains to each other using the layer zero function. Polkadot is a proof of stake blockchain that connects other blockchains together.
Polkadot is a hub and spoke network model with the hub called the relay chain where all the parachains come to achieve consensus. Validating nodes must stake 10,000 DOT coins to participate in the network. This ensures that validators have skin in the game to maintain the integrity of the network. They achieve consensus in the relay chain. Parachains are the spoke part of the network, the parachains go do their work on the blockchain and then come back and sync up with the Polkadot network.
Polkadot is a very robust blockchain and is antifragile with its ability to connect other blockchains. It is able to do this through it’s treasury and Kusama.
Kusama has a live fast and die young attitude and embraces chaos. It is secure and reliable but also knows when to use experimentation and adaptation. It is a practice network and testing field. Kusama has real stakes on it similar to the primary Polkadot network. It has a significant influence on what happens on the real larger Polkadot network.
The treasury is for community building, security, marketing, and software development through using existing funds from fees.
Polkadot has positioned itself as the blockchain for innovation, interoperability, scalability, and experimentation. It is a new angle that is trying to connect the whole blockchain ecosystem together in one central location.
Coinbase added Polkadot (DOT) in June 2021 to its cryptocurrency trading platform making it a very liquid and accepted top cryptocurrency.
As of this writing Polkadot (DOT) is the #10 biggest cryptocurrency by market capitalization with a total value of almost $29 billion with 987,579,315 DOT tokens in circulation. It’s current price as of the time of this writing is $29.24.
Web3 Foundation, CC BY-SA 4.0 <https://creativecommons.org/licenses/by-sa/4.0>, via Wikimedia Commons