What is Polkadot?
Polkadot was founded by Gavin Wood, alongside Peter Czaban and Robert Habermeier in 2016. It is a software created to connect blockchains into a combined network.
The developers that create decentralized systems have to build them from scratch. Polkadot aims to save them time and resources to develop value on top of all blockchains, not just one.
Polkadot has its own cryptocurrency, called DOT. It is used to engage in governance decisions, like voting inside the network, but is also utilized as a digital payment method.
How does it work?
Polkadot is planned to function on two kinds of blockchains:
- The relay chain, which is the main network where the transactions are concluded and finalized. Separating the new ones from validating them allows Polkadot to process more than 1000 transactions per second.
- The parachain, which are networks created for the users and profit from the security as the main chain. They are common blockchains that certify the transactions are correct, using the relay chain.
The Polkadot team thinks this will make transactions more secure and private, by creating blockchains that process a higher number of transfers and not sharing the users’ data to the public network.
The blockchains connected to Polkadot can use their own PoS mechanism, run the dApps or the tokens they select, or decide how and when to update their code. Basically, every network can maintain its personal security while integrating new protocols.
There are three categories of users that are included in the network development:
- DOT holders include everyone who acquires DOT tokens. They can use the currency to suggest changes regarding the network and vote to pass or deny them.
- The DOT holders select the council members. They are in charge of proposing changes and determining which ones will be made to the software, but the council’s proposals necessitate fewer votes to be confirmed.
- The technical committee is chosen from the council members. The committee can make exceptional proposals in case of any emergency.
How to get DOT?
You can find DOT on most exchange platforms, but most of them don’t offer direct exchange from your fiat currency to DOT. Therefore, you will need to deposit your money first, then transfer it over to another cryptocurrency (for example BTC), and finally trade these tokens for DOT.
You can store your DOT in digital wallets, which are divided into two sections:
- The controller section is used to issue orders on the network.
- The stash feature is used to keep big amounts of DOT.