Cryptocurrency

While the innovative concepts of cryptocurrencies, blockchains, and cryptocurrency ecosystems have changed how people think about financial systems, they do have one glaring drawback – interactive compatibility.

As of this writing, there are probably about 1,000 distinct blockchain networks enabled by thousands of cryptocurrencies. That estimate will progressively grow over time.

Each blockchain network and accompanying community ecosystem is isolated from one another. Non-communicative, isolated blockchain ecosystems hinder shared innovation potential and don’t make cryptocurrency exchange easier.

The Polkadot protocol aims to change all of that.

Polkadot (DOT) is an innovative multi-chain software protocol designed to accommodate multiple blockchain platforms on the same network digitally.

The Polkadot blockchain software can improve scalability, network security and augment interoperability with formerly incompatible and isolated blockchain networks.

Polkadot Basics

Polkadot is a new cryptocurrency software that was officially launched in May 2020. The DOT tokens were initialized in August 2020.

The developers of Polkadot have raised over $240 million via private fundraisers and initial coin offerings since 2017.

Polkadot was first developed in concept by co-founding Ethereum developers Jutta Steiner and Gavin, Robert Habermeier, and Peter Czaban back in 2016. Polkadot is also being developed in conjunction with advocacy, research, and funding support from the Web3 Foundation.

In layperson terms, the Polkadot blockchain protocol is a software system that facilitates the transfer of tokens and data over various blockchains. Once isolated blockchains that were incompatible can now transact and interface freely.

Polkadot has for main components. The first two are called the “Relay Chain” and the “Parachain.”

The relay chain is the main platform. Multiple blockchains can interface on the relay chain through a process called “sharding.” All transactions are permanent.

You can create your own independent tokens and user-launched platforms on the parachain.

The “Parathread” is a pay-on-demand version of the parachain. Finally, Polkadot’s “Bridges” enable the parachain and parathread to interface with other external blockchain platforms.

Polkadot features enhanced scalability and can be forked without community ecosystem dividing network overhauls.

The DOT cryptocurrency is used for facilitating parachains, providing ecosystem governance, and ensuring operations.
The Polkadot Future

Polkadot aspires to connect private and public blockchains, simplify ecosystem governance, expedite transactions, enhance trustless networking, and accommodate future cryptocurrency technologies.