Polkadot blockchain network and its DOT token have established themselves firmly within the cryptocurrency market today. Dab stands as one of the 12th-biggest cryptocurrencies by market capitalization and 13th by daily exchanging volume – although still finding its place among a competitive landscape with many competing cryptocurrencies that share similar objectives.
Polkadot stands out as one of the more appealing cryptocurrency investments available now and I see why. Here’s why.
An Authentic Family
Gavin Wood was instrumental in creating Polkadot cryptocurrency and led by Ethereum ( ETH 0.01% ) co-founder Gavin Wood in creating it. Wood left that revolutionary project behind to pursue different objectives under Polkadot standard, growing tired of “crypto maximalism”, where one must simply help their host group no matter what came their way. Instead he sought out to develop a blockchain framework capable of working with various other blockchains simultaneously.
He also launched Web3 at around the same time and made Polkadot its official cryptocurrency. Web3 is a developed technology framework where online entertainment companies and large corporations governing most of this web are replaced by blockchain-based systems and decentralized figuring services.
Polkadot was launched by an individual from cryptocurrency sovereignty who wasn’t afraid of hiring smarter individuals with greater project ideas – an incredible foundation to start their lives on! This was truly remarkable.
Specialized Benefits
Polkadot was purpose-built to help Wood achieve his Web3 vision. Serving as a layer-zero protocol, Polkadot connects multiple blockchain networks together while at the same time linking with new partner blockchains over time. According to Wood, no blockchain is perfect – for longevity in this market place one must be flexible enough to replace failed ideas with better alternatives – that is exactly how Polkadot works and making it one of the cornerstones of Web3 platform architecture.
Polkadot’s business pack begins with its focal chain – a blockchain network upon which the DOT token operates. Utilizing proof-of-stake, owners of these tokens can stake them to win marking prizes and assist in managing Polkadot as an entire platform. Furthermore, this blockchain is where Polkadot’s parachains connect back into the wider ecosystem – similar to an urban train station which hosts various platforms with opposing opinions and interests.
Parachains form the core of Polkadot’s architecture. They are decentralized blockchain networks with various plans, capacities and objectives – such as Mangata X decentralized exchanging exchange, Efinity cross-chain exchanging framework for non-fungible tokens (NFT) trading or Moonbeam chain’s administration and execution of Ethereum compatible smart agreements.
Parachain entries are awarded to those who triumph in Polkadot’s parachain barters. Furthermore, its sale cycle provides funding to winning projects through so-called crowdloans, enabling holders of both DOT tokens and Kusama (KSM 0.79% ) testing tokens to make repayable investments directly in their favorite parachain projects.
This framework is equipped with exceptional features for cross-chain functionality, project subsidizing, decentralized platform advancement and more.
You’re Getting On This Roller Coaster On The Bottom Floor
Since their public launch in the spring of 2020, DOT token prices have seen a remarkable 500% surge on the spot market. That represents an incredible return in less than two years but doesn’t indicate missed out on Polkadot opportunities; rather, consider today’s lower DOT price as 68% off from last November’s record-setting highs!
Polkadot network has only been fully operational for two months since it first initiated parachain networks. This platform offers several advantages over traditional smart agreement giant Ethereum and the collection of purported Ethereum executers; particularly that application designers can select suitable credits from multiple blockchain networks.
Polkadot’s designers should deliver monumental successes over the next two or three years, creating transformative projects in areas like decentralized finance, blockchain-based gaming and NFTs. Early investors may witness longer term financial stability gains as Polkadot expands.