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Your #1 Guide to Polkadot (DOT)

You know that blockchain is the future, but you’re not sure how to get started.

It’s hard to keep up with all of the new coins and ICOs popping up every day. There are so many different coins out there; it can be overwhelming trying to figure out which ones are worth your time.

Polkadot is a public, peer-to-peer cryptocurrency that provides a new blockchain architecture that solves the three major problems of decentralized networks. It’s secure, scalable, and has low latency. This means it can run any program you could think of that a computer can do – this makes Polkadot so different from other cryptocurrencies that are just trying to be digital money or gold.

Polkadot

How does Polkadot work?

Polkadot is a peer-to-peer blockchain network. Polkadot provides an environment of trust where only desired value and information can be exchanged safely amongst untrusted networks without the use of any trusted third party. Polkadot uses blockchain technology to enable:

1) A heterogeneous multi-chain platform that supports cross-chain transfers and enables Polkadot to evolve flexibly.

2) A more scalable consensus model for Polkadot’s blockchain architecture, called Polkadot Proof-of-Stake (PoS).

3) New extensibility method will allow Polkadot to be updated by its participants without any major party making changes to Polkadot’s rules. Polkadot is Turing-complete; Polkadot can run any program you could think of that a computer can do and enables an environment where untrusted code is safe to execute.

The Polkadot peer-to-peer network includes all Polkadot nodes, equivalent to the nodes on any other blockchain, such as Ethereum. Polkadot also contains several Polkadot smart contracts that are responsible for Polkadot’s unique functions. Polkadot uses consensus methods similar to PoW and PoS, but Polkadot requires only a few types of nodes to reach an agreement when making modifications to the Polkadot network.

Polkadot is responsible for keeping Polkadot’s blockchain secure. Polkadot also has a unique governance function, allowing Polkadot’s blockchain rules to be modified via the consensus of Polkadot holders if any changes need to be made. Polkadot does not have the concept of mining and cannot support turing complete smart contracts.

How to buy DOT

Polkadot’s token is called DOT. A circulating supply of 1 Billion DOT was created. The Polkadot Foundation has a hard cap of $60 million. Polkadot is an Ethereum-based ERC20 token. You can store your tokens in any wallet that supports Ethereum-based tokens, such as Coinomi and MyEtherWallet.

Before buying DOT, you should first buy some Ethereum (ETH). The reason for this is that to purchase an ERC20 token, you need to use ETH as an intermediary currency. You can buy ETH on exchanges like Coinbase and Binance. After buying some ETH, send your Ether over to one of the many cryptocurrency exchanges that list DOT. After purchasing your DOT tokens, you can store them in any wallet that supports ERC20 tokens, such as Coinomi and MyEtherWallet.

dot coin

The current price of Palkodot

Currently, one DOT token costs around $29.96, and the circulating supply is 1 Billion DOT. The maximum amount of Ether that Polkadot can raise during their ICO is $60 million.

History of Polkadot (DOT)

Polkadot was originally called ParaSail. The team behind Polkadot started ParaSail in 2012 and worked on this project for a long time before they rebranded the company as “Parity Technologies” to focus more on Polkadot and Polkadot only.

The original idea for Polkadot came from Gavin Wood, who is a co-founder of both Parity Technologies and Ethereum; Polkadot’s first crowdfunding sale took place in 2017. The Polkadot Foundation was launched as an independent entity to manage the funding for Polkadot.

Polkadot aims to provide a more flexible blockchain, which can solve the three major problems that all current blockchains have: data processing (i.e., scalability), consensus formation, and interoperability.

Ethereum blockchain’s time verification process takes about 20 seconds to achieve consensus across the blockchain. Polkadot has a much faster time, which is around 1 minute.

Summary

Polkadot might be what you need if you are looking for a decentralized solution to the three major problems of data processing, consensus formation, and interoperability. With their quick time verification process (around 1 minute), they may have solved one of the biggest obstacles facing blockchain technology today. Given that DOT is an Ethereum based ERC20 token that can store in any wallet that supports Ethereum tokens such as Coinomi or MyEtherWallet, it should be relatively easy to buy some Ether on exchanges like Coinbase or Binance before sending your ETH over to cryptocurrency exchange where you can purchase DOT at around $29.96 per coin with a circulating supply of 1 Billion coins total makes this potentially lucrative opportunity worth exploring further.

Polkadot (DOT) FAQ

What is the market cap of Polkadot?

The market capitalization for DOT has reached roughly $1.2 billion. This is based upon the valuation of $29.96 per token and a total circulating supply of 1 Billion tokens.

What is the 24-hour trading volume of Polkadot?

The 24-hour trading volume for Polkadot at the time of writing is approximately $3,684,231,466.

Can Polkadot run smart contracts?

No, Polkadot cannot run turing complete smart contracts. However, it does have the concept of “transactions” that can be used to send messages between different blockchains in a lightweight manner.

What consensus algorithm does Polkadot use?

Polkadot uses a modified proof-of-stake consensus model called “WebAssembly proof-of-stake” (also known as Polkadot’s “proof-of-stake algorithm”)

What is Parachain polkadot?

A Parachain is a special Polkadot chain with its own parachain governance and a protocol to communicate with the parent Polkadot network.

How to create your own blockchain using Polkadot?

The team behind Polkadot have created an open-source development toolkit called “Griffin.” You can use this toolkit to create your own blockchain and in turn, you can also use that chain to create a parachain.

Is Polkadot an ERC20?

Yes, DOT is the ERC20 token that can be stored in any wallet that supports Ethereum Tokens such as Coinomi or MyEtherWallet.

What are some of the tokens being launched on Polkadot?

Some of the tokens that have already been announced to be launching on Polkadot include StakeNet (STX), E-Vault (EVT), and Liquidity Network (LQD).

Can I mine DOT?

No, you cannot mine Polkadot or any other cryptocurrency blockchain using traditional PoW/PoS mining operations. The consensus model used is called “WebAssembly proof-of-stake,” which has been specially designed for this project.