If you are wondering what is Polkadot and you do not have a clear answer, then we have created this full tutorial guide that will explain you all you need to know about what is Polkadot (DOT).
AltSignals has a compromise with the cryptocurrency community to share high-quality content, information and data about the entire crypto space. This is why we have decided to create this full tutorial guide about what is Polkadot.
In the next sections, you will have all the necessary information you should have about what is Polkadot, why this digital asset was created and which is the issue they want to solve.
Disclaimer: this post should not be considered investment advice. This is only for educational purposes only. Never invest more than what you are able to lose and always ask for information to your professional financial advisors. We are not financial advisors.
What is Polkadot (DOT)?
Polkadot is a blockchain network that is considered to be a next-generation protocol. According to their official site, Polkadot is a blockchain protocol that connects multiple specialized blockchains into one unified network.
There are several features related to this blockchain network. When we think about what is Polkadot, we must have in our mind five main things:
- Work Together
- Easy Upgrades
Scaling is the first feature we need to understand about Polkadot. Blockchain networks in the market have been sharing with users a large number of solutions over the last years but none of them was able to properly scale to support mass adoption.
As a shared multichain network, Polkadot solves this issue. It eliminates the bottlenecks that can affect traditional blockchain networks and process as many transactions on several chains in parallel. No other blockchain network is able to offer these solutions right now.
Thus, it is possible to improve scalability and create the right conditions for adoption and future growth. All the shared chains that are working with Polkadot are known as parachains due to the fact they are running not on top of Polkadot but in parallel to it.
As we know, the cryptocurrency market has seen the creation of a large number of blockchain networks. This allowed for some platforms to specialize in specific features and offer firms and users the possibility to enjoy a specialized network. One blockchain could offer fast transactions while another one would be providing identity solutions.
By using Polkadot, all the networks can focus on their use case and optimize it. Blockchain networks can offer their best solutions without having to be worried about other things. By using the Substrate development framework, it will be possible for teams to customize and develop blockchain networks in a much more efficient and specialized way.
The answer to What is Polkadot includes working together. The Polkadot network is currently offering interoperability and cross-chain communication. This allows for more innovative and new services to be released to the market.
In addition to it, these new services and products can share information using different chains. A financial services company could work and communicate with another that provides access to real-world data. That means that blockchain networks can cooperate and work together offering their best services.
This is another important thing related to What is Polkadot and how it works. The teams working with this network can easily customize and improve their blockchain’s governance model. This can help them have better ideas, experiment with new features and deploy faster and better solutions.
Blockchain governance is one of the most important things for companies and networks that want to offer decentralized solutions to clients and firms. With Polkadot, it is possible to perfect blockchain governance models and upgrade them to offer the solutions they need.
Being an easy network to upgrade is also an important thing to take into consideration. Networks and companies should always stay relevant and improve over time, and several blockchain networks know that.
Upgrades in proof-of-work (PoW) networks take place via hard forks, which can generate problems among the community or technical issues. This is why Polkadot has decided to enable blockchain networks to have forkless upgrades.
This is going to be a great solution for blockchain networks to evolve and adapt to new situations in a faster and better way.
It is also worth mentioning that at the time of writing this post, Polkadot (DOT) is the 7th largest virtual currency in the market with a valuation of $3.48 billion and a price per coin of $4.08.