Polkadot (DOT) - a cryptocurrency that combines many blockchains into one

DOT tokens under the Polkadot blockchain protocol can only be transferred from August, and they have already entered the top ten cryptocurrency capitalization and are worth over USD 4 billion. What is the secret of Polkadot's strength? We invite you to the description of the project, which is undoubtedly innovative and, according to some, can even dethrone Ethereum.

We continue the cycle of the Forex Club portal in which we describe the largest, most valuable, as well as the most popular and controversial cryptocurrency projects in the world. Today it's time for Polkadot (DOT), a hit that is breaking into the top cryptocurrencies with the largest capitalization in the world. 

Polkadot - many chains within one network

Polkadot is a project that wants to solve the blockchain technology problem once and for all, which is based on communication inaccuracies between different chains. In short: nature blockchains limiting the possibility of external interference, is also their limitation, because they cannot easily communicate between different blockchains. Polkadot is to change that. They are behind the project Gavin Wood and Jutty Steiner, who once worked for Ethereum. 

The first Polkadot code was published in November 2017, and in mid-2018, two proof-of-concept algorithms were ready. The start of the project is May 2020. 

Polkadot works on the principle of parachaines. It is parallel processing of transactions for different blockchains. Moreover, parachaines can also exchange information with each other. You can also create additional parachaines for new projects or applications. An undoubted advantage is the possibility of modernizing each of the chains without rebuilding the entire network.

Parachains are also compatible with the functions of other blockchains, such as Ethereum smart contracts, UTXO transactions in Bitcoinie and ZK-snarks  w Zcash.

The stability of the network is supervised by validators, stacking DOT tokens, who approve individual operations. They are selected by nominators who, in addition to stacking tokens, also secure the main chain. There are also so-called fishermen, responsible for constant monitoring of the net in order to extinguish the embryo of activities that may negatively affect the entire network or its users.

ICO and private sale of the DOT token

The token itself had its ICO in 2017, during which it managed to collect almost USD 14 million, but in 2019 and 2020 there were two more private issues worth a total of USD 100 million. Then there were also changes, because some tokens were frozen, and a 100-fold denomination was also introduced. Thanks to this, the tokens are "cheaper", so it is easier to trade them also in the field of microtransactions. 

However, the tokens are safe mainly thanks to the innovative network. In their case, there is practically no threat hard fork, i.e. the separation of the network resulting in the creation of a new chain and cryptocurrency (such as Ethereum and Ethereum Classic), because the network can naturally handle different blockchains simultaneously.

DOT cryptocurrency quotes

As of December 09.12.2020, 46, Polkadot (DOT) is listed on 852 cryptocurrency exchanges from around the world. There are over 1,02 million units in circulation out of the target 4,92 billion tokens. At $ 4,2, this translates to a market cap of almost $ 13 billion. The highest price in the history of Polkadot was achieved on August 2020, 440,04, when USD 100 was paid for each token. But remember, then there was a XNUMX-fold denomination. 

Despite the short internship on the market, the interest in the token is very high. Daily turnover exceeds $ 90 million and is rising slowly but steadily. The next milestones in the development of the project will undoubtedly be the construction of new parachaines.