The article will help you understand what Polkadot is, the problems the project poses to solve and other information about the tokenomics of the DOT coin. From there, you will have a better overview of Polkadot and decide whether to invest in DOT or not!
What is Polkadot?
Polkadot is a Blockchain platform, or specifically a multi-chain technology , which is heterogeneous and highly scalable. Polkadot allows Blockchains to connect with each other to share data and form a decentralized network.
Polkadot's vision is to create a "Decentralized Web" where our identity and data will be controlled by ourselves, not by a 3rd party like an organization or government. some government.
Who is responsible for building Polkadot?
Basically, Polkadot is an open source project and anyone can freely contribute to the development of the platform. In addition to the open source community, behind Polkadot is the Web3 Foundation - one of the leading organizations in the Crypto space. The Web3 Foundation makes a financial and technological contribution to Polkadot.
In addition, the Web3 Foundation is also working with groups interested in developing additional implementations on the platform such as:
- Core-Polkadot: Collator Nodes, Validator Nodes, Relay Chain.
- Ecosystem: Block Explorers, Node Explorers, Wallets.
Learn more Web3 and Web Foundation here .
How does Polkadot work?
Blockchain's problem
Similar to Cosmos Network , Polkadot focuses on solving two main problems of Blockchain: Interoperability, Scalability of the network and Adoption. Specifically:
- Limited Scalability: Bitcoin and Ethereum Examples - the top two accepted blockchain singles. However, the average transaction speed per second on the network also only stops at two figures, while this number in VISA is 24,000 - 40,000. Is it possible for the majority of users to switch from VISA to Bitcoin or Ethereum Blockchain?
- Adoption: Blockchain in general is still new to the vast majority of users. It all needs to be simplified so that everyone can use it the way we use the Internet, as well as apply it to work and daily life.
- Low interoperability: For example, A owes B 1 Bitcoin, B wants A to repay in Bitcoin, but A only has ETH. The situation is imperative that A has to transfer ETH to the exchange to sell ETH and buy BTC, then transfer BTC to B… In fact, this process may be simpler, but it is still quite complicated, costly in time and money. .
Polkadot's solution
Polkadot's idea includes a Mainchain (Relay Chain), Layers 2 scaling solution (Para Chain) and a bridge with other Blockchains (Bridges Chain). In there:
- Relaychain: Is Polkadot's Central Chain, responsible for connecting Validates to Parachains. Specifically, the Validators (validators) will Stake DOT on Relaychain to protect the network, transactions including network administration. Transaction fees on Relay Chain will be higher than on Parachain.
- Parachain : Is a solution to scale the network of Polkadot. Basically Parachain is not necessarily a Blockchain. It can be a Dapp (decentralized application) or a Data Structure (data structure), as long as it can provide proof that can be verified by the Validators assigned to that Para Chain. Most of the computation that happens on the entire Polkadot network will happen on Parachain.
- Parathread: Similar to Parachain but with a pay-as-you-go model. More savings for blockchains that don't need a constant connection to the network.
- Bridges Chain: It can be envisioned as a bridge between Polkadot Network and other Blockchains, providing interoperability between networks.
You can see an overview image of Polkadot's design (DOT) in the image below:
Salient features of Polkadot
Components of the Polkadot network
Polkadot's network consists of 4 main components:
- Validators: Produce Relay Chain blocks, responsible for validating and adding new blocks to the Relay Chain.
- Collators: Monitor transactions happening on Parachain and send proof to Validators to maintain network security.
- Nominators: Nominate Validators, just like you delegate your shares to other Validators. When these Validators receive rewards from validating, adding new blocks, some of the rewards will be shared back to Nominator. This is similar to Delegate and DPoS.
- Fisherman: Monitor the network and report bad behavior to Validators. Collators and any parachain full node can perform the Fisherman role.
Here are some highlights of Polkadot:
On-chain governance system
This is basically Tezos is doing, which is Voting to vote on proposals to update the new Protocol.
Cơ chế Nominated Proof-of-Stake (NPoS)
NPoS is quite similar to DPoS, you will lock your DOT, delegate stakes to 1 Validator to confirm and add new blocks to the chain, then share the block reward.
The fundamental difference here is that the Validators will be randomly selected from qualified people and this will change several times per day.
Parachain Design
The design of Parachain does not require it to be necessarily Blockchain. As long as it can provide verifiable proof by the Validators assigned to it. All Parachains connect to Relaychain via proof of stake on Relaychain, so the more Parachains there are, the more secure and secure the network will be.
Interactions on Parachains are processed in parallel, so transactions can be spread across Parachains, so that Polkadot Network can process more transactions at the same time.
Substrate
Substrate can simply be understood as a framework to help you build Blockchain more easily.
Substrate is not part of Polkadot, but projects built with Substrate can run natively on Polkadot. You can use Substrate to build new Blockchains right now without waiting for Polkadot Launch Mainnet.
So projects can build against Substrate but may not run on Polkadot, but if a project says it will run on Polkadot that has nothing to do with Substrate then it is a scam.
Detailed information about DOT coin
DOT rate today
You can track the price of DOT coin on Coin98 Markets right at: markets.coin98.com/currencies/polkadot
Coin98 Markets is a page where you can update real-time prices as well as view detailed information about Token Metric of a project. In more detail, you can visit the homepage and community page of the projects or filter the coins/tokens by Marketcap, Transaction volume,...
Key Metrics DOT
- Token Name: Polkadot
- Ticker: DOT.
- Blockchain: Polkadot.
- Token Standard: Updating…
- Contract: Updating…
- Token Type: Utility, Governance.
- Total Supply: 1,095,100,722 DOT
- Circulating Supply: 1,014,151,589 DOT.
DOT Allocation
- Polkadot Auction: 50%.
- Web3 Foundation: 30%.
- Further Pre-Launch Distributions: 20%.
DOT Sale
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DOT Release Schedule
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DOT Use Case
The DOT coin will be used to:
- Administration.
- Staking to do Validator.
- Parachain Auction, when the auction project is successful, this DOT number will be locked.
How to earn and own DOT coin
Currently users can buy DOT coin on the exchange.
Projects that want to participate in the auction can do Crowloan to raise DOT coins from the community.
Roadmaps & Updates
Currently coming to the preparation stage for Parachain auction on Polkadot. But first, the Parachains must work well on Polkadot - Kusama 's testnet . At the present time, there have been a number of successful Parachain auction projects on Kusama.
Polkadot upgrades are currently under development going forward, including an upgrade to XCMP (Cross-chain Message Passing) and the launch of Parathreads. The Polkadot admin community can activate these and any subsequent upgrades after completing development, testing, audit, etc.
Project team, investors, partners
Project team
The members all have long-term experience in technology and Blockchain, the most prominent of which is Gavin Wood, who used to be Co-Founder and CTO of Ethereum; and Peter Czaban, Technology Director of the Web3 Foundation.
Investors
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Partner
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Similar projects
Cosmos (ATOM) : Decentralized network of parallel Blockchains, focused on solving Blockchain scalability and usefulness issues
summary
Thus, Coin98 has provided you with detailed information about Polkadot Network and DOT coin, it can be seen that, although the mainnet has not been launched yet, Polkadot is still a project that many users expect and put a lot of trust in. .
How about you guys, what will DOT be like when it gets mainnet? Leave a comment below to share and discuss with Coin98!
