What is Polkadot anyway?

The real stumbling blocks

As we know, blockchains predate Bitcoin. It is an innovative technology, and it has some disadvantages that should be taken into account. For example, individual blockchains cannot cooperate with each other, and this is the problem that the project we are reviewing solves.

New Horizons and New Solutions

Polkadot is a next-generation blockchain protocol capable of connecting several specialized blockchains into one universal network.

Solving this problem will open up tremendous opportunities for the whole world of cryptocurrency, it will increase the ability to exchange and process data, and inexorably lead to the creation of more powerful and innovative technologies and applications, all of the above is an important part of Web 3.0, a new stage in the evolution of the Internet, but we will touch on this topic next time.

Principle of interaction

The separate blockchain in the Polkadot ecosystem is called a parachain (parallel blockchain) and the main chain is called a Relay Chain. The idea is that parachains and Relay Chain should be able to freely exchange information at any time.
For the sake of simplicity, we can imagine that the whole Polkadot system is designed as a flower, where the core of the bud (the base) is Polkadot and the petals, which are attached to the core, are parachains.

Ease of use

The whole system is designed so that any developer, company or individual can deploy their own parachain using Substrate, a platform for creating cryptocurrencies and decentralized systems. As soon as a user's chain connects to the Polkadot network, it becomes compatible with all the parachains of that network.

Polkadot technology makes it much easier to develop new crosschain applications, products, and services, because previously it was impossible to transfer data and assets between blockchains in large volumes, and projects spent a lot of time and money to secure their networks, which Polkadot now takes care of.
Data protection and verification in the various parachains is performed by network validators. They ensure that transactions are distributed across multiple parachains to improve scalability.

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Polkadot Benefits

There are many good reasons why Polkadot is attracting more and more new developers, but the core of them all is that Polkadot solves global problems that are serious obstacles for other blockchains, namely:

Scaling

Polkadot acts as a multichain network, allowing transactions to be processed in parallel through separate chains. In this way, the network can remove many of the obstacles associated with blockchain technology. Parallel processing is a significant improvement and another step toward a more widespread adoption of blockchain worldwide.

Setting up

Polkadot opens up a wide range of customization options for those who need to customize their workflow for specific purposes.Currently, there is no single blockchain infrastructure to manage. Every project has its own individual needs, and Polkadot allows you to optimize the design of each individual chain according to its specific functions. With Substrate, developers can effectively tailor their chains to the needs of the project.

Interaction

When it comes to interoperability, the ability to seamlessly exchange data between projects and applications is important. It is not yet known what type of products or services will emerge as a result, but it has many uses. In the future, we could see an entirely new financial ecosystem in which each individual parachain is responsible for one specific aspect.

Management and upgradeability

The community of each parachain needs to be able to freely manage its network. These communities are crucial for the future management of Polkadot as a whole: feedback from community members is valuable information for future project development.
In addition, Polkadot makes it easier to update individual parachains. Thus negating the need for hardforks.

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What is a DOT token

Polkadot has its own token called DOT. It serves as a network token, like ETH for Ethereum or BTC for bitcoin. The token is needed by the network for many tasks such as: managing the network, achieving network consensus through staking, and maintaining security and reliability.

Another option is to use DOT for binding. Linking via DOT is necessary when new parachains are added to the Polkadot ecosystem. During the bind period, the linked DOT is blocked until the bind period expires and the parachain is removed from the ecosystem.

Staking and tying at Polkadot

Polkadot's approach to interaction goes far beyond just exchanging data and assets. It also enables the introduction of new concepts such as fair token stacking and fair token linking.

Placing tokens on the blockchain network is not a new concept. This consensus model, known as Proof of Stake (PoS), rewards users for placing coins on the network. In Polkadot, users who engage in honest staking are rewarded, while abusers can lose all their funds.

As I mentioned above, each new parachain is added by linking DOT tokens. Binding means sending tokens to the network for a certain period of time. Unused chains and projects that are no longer supported will be deleted and the associated tokens will be returned to their owners.

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I hope my voice in your head sounded interesting and informative, and if so, see you in the new post, Friends!

And may your Joker bring you luck and happiness ;)