What is Polkadot? Dot Coin Overview
The crypto market continues to appear day by day by adding innovations to its technologies. We have compiled for you the most critical information about what the Polkadot project, which was launched in 2020 with ambitious goals, a revolutionary series of technical innovations, its content, revolutionary features, purpose of use.
Polkadot, which has distinguished itself as one of the best-funded blockchain projects in crypto history, has demonstrated a few key advantages by building on top of the revolutionary qualities of previous blockchain networks. For example, we can say that crypto has made important contributions to the further dimensions of the decentralized money market vision in terms of offering opportunities such as the decentralized web that we will discuss in detail and consequently contributing to the distribution of the internet monopoly to individuals.
It was developed by the Swiss-based Web3 Foundation, headed by Gavin Wood, who is well known for his Ethereum co-founder, with the goal of creating a decentralized web that can only be under the control of users. With this decentralized web application, the intermediary relationship between blockchain networks paves the way for direct communication and collaboration, paving the way for serious ease, practicality and functionality. If we look at the objectives of Polkadot, which includes more than all these, roughly:
- Interoperability between different blockchains on the web,
- Add scalable
- Maximum network security
- Independence in the governance of blockchains
- Blockchain updates to prevent bifurcation
- Provide an environmentally friendly and sustainable verification platform
We see the existence of such purposes.
How Does Polkadot Work?
Using the Proof of Stake consensus mechanism, Polkadot has a fragmented multi-chain network structure called a parallel chain (parachain), where transactions can be carried out in parallel. Mostly used by the network for governance, staking , and bonding, Dot coin gives validators a voting power that allows them to contribute to the decisions and development of the project. Although its capabilities are not limited to these, the Dot coin , which can also be used to encourage validators to honesty in cases where there is a financial interest in the verification processes, includes the following 4 important consensus roles:
- Validation Roles: When necessary, they verify the data in the Parachain blocks, can join the consensus or vote on the proposed changes in the network.
- Nomination Roles: They ensure the security of the main chain by distinguishing between Dot votes and trusted validators. They transfer the Dot coins they bet on to the validators.
- Collection Roles: It records complete fragmented transactions of users and provides verifiers with proofs of these transactions.
- Fishing Roles: Polkadot performs instant tracking on its network and notifies validators of any unusual situations.
What is DOT Coin?
Dot coin refers to the native coin of the Polkadot network, like Bitcoin’s BTC, Ethereum’s ETH, which many of us are familiar with. Just like BTC and ETH, Dot Coin aims to carry out a number of technical and financial innovations in its network since its launch:
Management: Token holders can vote on proposals that include protocol updates and the realization of new functions.
Bet: Tokens can be bet in favor of Polkadot’s security model. Honest validators are rewarded by the network for their participation.
Binding: Parachains take positions by blocking DOT coins .
Fees: For messages between parachains.
Polkadot Functions and Advantages
Whether as a result of security or decentralized applications, Polkadot’s large flexible nature allows the creation of different blockchains with very characteristic purposes in one application. With all these technical features of Polkadot, which paves the way for instant development and innovation through different inter-developer transactions, we can say that it covers technology and innovation trading, beyond a coin trade.
Result
Polkadot, which went through a successful launch period with its launch and took its place among the ten most valuable cryptocurrencies in terms of market value in the ongoing process, is now struggling with possible competitors by building on these technical achievements.
