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About Polkadot
What Is Polkadot (DOT)?
- Polkadot is an open-source sharded multichain protocol that connects and secures a network of specialized blockchains.
- It facilitates cross-chain transfer of any data or asset types, allowing blockchains to be interoperable with each other.
Who Are the Founders of Polkadot?
- Polkadot is the flagship protocol of Web3 Foundation, a Swiss Foundation.
- The founders are Dr. Gavin Wood, Robert Habermeier, and Peter Czaban.
What Makes Polkadot Unique?</h3
Unlocking the Power of Interoperability: About Polkadot
Unveiling Polkadot (DOT): A Revolutionary Blockchain Interoperability Platform
Polkadot is an open-source, sharded multichain protocol that interconnects and secures a network of specialized blockchains, thereby facilitating seamless cross-chain transfer of diverse data and asset types, extending beyond mere tokens. This enables blockchains to interoperate with one another, fostering a decentralized internet of blockchains, also referred to as Web3.
Polkadot is renowned as a layer-0 metaprotocol, as it underpins and defines a framework for a network of layer 1 blockchains, known as parachains (parallel chains). Furthermore, as a metaprotocol, Polkadot possesses the capability to autonomously and seamlessly update its own codebase via on-chain governance, in accordance with the collective will of its token holder community.
Polkadot lays the groundwork for a decentralized web, empowering users to take the reins, and streamlining the development of innovative applications, institutions, and services.
The Polkadot protocol facilitates seamless connections between public and private blockchains, permissionless networks, oracles, and future technologies, enabling these independent chains to share information and transactions in a trustless manner through the Polkadot Relay Chain (explained further down).
Polkadot’s native DOT token fulfills three distinct functions: it enables staking for operational efficiency and security, facilitates decentralized network governance, and is utilized for bonding tokens to establish connections between parachains.
Polkadot is comprised of four integral components:
- The Relay Chain, the linchpin of Polkadot, facilitates consensus, interoperability, and shared security across a diverse network of chains;
- Parachains, independent and self-contained, can boast their own tokens and be tailored to specific use cases;
- Parathreads, similar to parachains, offer flexible connectivity based on a cost-effective, pay-as-you-go model;
- Bridges, the connective tissue, enable seamless communication and interaction between parachains, parathreads, and external blockchains, such as Ethereum.
The Visionary Founders Behind Polkadot
Polkadot is the flagship protocol of the Web3 Foundation, a Swiss-based organization dedicated to fostering an open-source, fully functional, and user-centric decentralized web.
At the helm of Polkadot are its visionary founders: Dr. Gavin Wood, Robert Habermeier, and Peter Czaban, a triumvirate of innovators who have shaped the project’s trajectory.
Notably, Wood, the president of Web3 Foundation, is the most prominent figure among the trio, owing to his profound industry influence as the co-founder of Ethereum, founder of Parity Technologies, and the visionary behind Solidity, the pioneering smart contract coding language. Furthermore, Wood is credited with coining the term Web3.
Habermeier, a distinguished Thiel Fellow, is a renowned blockchain and cryptography researcher and developer. Czaban, boasting a rich background in highly specialized fintech industries, previously held the position of Technology Director at Web3 Foundation.
Unveiling the Unparalleled Attributes of Polkadot
Polkadot is a pioneering sharded multichain network, empowering the simultaneous processing of numerous transactions across multiple chains, dubbed “parachains”. This innovative parallel processing capability significantly enhances scalability.
Leveraging the Substrate framework, custom blockchains can be rapidly and effortlessly developed. Furthermore, Substrate blockchains are inherently designed to seamlessly integrate with Polkadot’s network. This network boasts exceptional flexibility and adaptability, facilitating the seamless sharing of information and functionality amongst participants. Notably, Polkadot enables automatic upgrades, eliminating the need for a fork, thereby allowing for the effortless implementation of new features and the removal of bugs.
The network boasts a highly sophisticated, user-driven governance system, wherein all token holders wield a decisive vote in shaping the network’s trajectory. Furthermore, teams can tailor their blockchain’s governance on Polkadot to suit their unique needs and adapt to evolving circumstances. Meanwhile, nominators, validators, and collators assume distinct roles, collectively working to ensure the network’s security and integrity, while mitigating malicious behavior.
By the close of 2021, Polkadot successfully wrapped up its inaugural Parachain auctions, which employed an unpermissioned candle auction system. The highest bid at the randomly determined auction close was deemed the winning bid.
Polkadot has allocated the inaugural five slots to the following auction winners: Acala, Moonbeam, Astar, Parallel, and Clover. These esteemed projects have secured their parachain slots for a 96-week tenure, backed by the DOT bidders’ collateral commitments. In keeping with Polkadot’s established protocol, all projects had undergone rigorous testing on Kusama, the network’s de facto testnet.
What Is the Circulating Supply of Polkadot (DOT) Tokens?
Following the network’s redenomination, subsequent to a referendum on Polkadot, DOT balances underwent a 100-fold increase, rendering one old DOT equivalent to 100 new DOT. Consequently, the initial maximum supply of 10 million old DOT in August 2020 was recalibrated to 1 billion new DOT tokens. This redenomination was undertaken solely to obviate the need for small decimals and facilitate more convenient calculations. Notably, while all balances were augmented by a factor of one hundred, this adjustment did not affect the distribution of DOT or the proportional share of holders.
Polkadot’s inaugural initial coin offering (ICO) took place in October 2017, with a token price of $0.29, featuring an allocation of 2.24 million tokens. The subsequent ICO, held in July 2020, saw a token price of $1.25, with 342,080 DOT tokens successfully sold.
The Security Paradigm of the Polkadot Network
The network employs a sophisticated NPoS (nominated proof-of-stake) consensus mechanism, which relies on the synergy between validators and nominators. Nominators pledge their tokens to support validators, thereby amplifying the staked tokens that, in turn, bolster chain security by rendering malicious behavior economically unviable.
Validators, staked on the Relay Chain, verify transactions emanating from diverse parachains. This innovative validity scheme facilitates secure interactions between chains, ensuring seamless communication under a unified framework while preserving their autonomous governance.
Where to Acquire Polkadot (DOT): A Comprehensive Guide
Presently, the premier exchanges for trading Polkadot (DOT) are Binance, Huobi Global, OKEx, Coinbase, KuCoin, and several others. For a comprehensive list, please refer to Polkadot’s markets page on CoinMarketCap.
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To obtain the current Polkadot price in your preferred fiat currency, you can utilize CoinMarketCap’s convenient converter tool, readily accessible on the Polkadot currency page.
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Polkadot’s Pioneering On-Chain Governance Paradigm
Unveiled in June 2022, the protocol is poised to revolutionize the existing framework, thereby further entrenching the network in the ethos of decentralization. The development team contended that the current governance system harbors elements of centralization, citing the Polkadot Council – a coterie of executives – which wielded sole authority over certain decision-making processes, including the allocation of the network’s treasury.
To this end, a novel development is poised to supplant the existing governance infrastructure with a paradigmatic framework, manifesting as a “referendum.” In essence, the forthcoming upgrade will usher in a voting system, empowering anyone to submit proposals and secure approval.
Dubbed Governorship version 2, or Gov2, this upgrade purportedly abolishes all manifestations of preferential treatment, effectively dismantling the privileged status of entities such as the Technical Committee and the Polkadot Council.
Through this initiative, the protocol seeks to mitigate the concentration of voting power by supplanting the Technical Committee with the Polkadot Fellowship, a novel entity designed to accommodate a vast membership of up to tens of thousands, with a significantly lower barrier to entry. The members are ranked to reflect the degree of informed decision-making and commitment to supporting proposals that align with the network’s best interests.
Another pivotal element of the upgrade is the Origins and Tracks system, which serves as a filtering mechanism to assess the significance of proposals and dictate their subsequent treatment. This enables the network to implement tailored safeguards, ensuring that the decision-making process remains decentralized and impartial. For example, proposals designated as Root Origins are deemed particularly sensitive and, as such, undergo extended and rigorous evaluation periods, with a higher approval threshold. Furthermore, the system ensures that only one hypersensitive proposal is deliberated upon at any given time, thereby preventing potential conflicts of interest.
Conversely, proposals with less sensitive origins are afforded shorter consideration periods, accompanied by a lower approval threshold. In essence, the importance grade of proposals dictates the level of safeguards assigned to them, as well as the duration of the decision-making process they undergo.
Initially, Gov2 will undergo rigorous testing on Kusama, a pioneering experimental environment designed for application testing, prior to its deployment on Polkadot. Following the completion of the exhaustive testing and audit phase, the team will formally submit a proposal to launch Gov2 on the Polkadot network.
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