What is DOT?
DOT is the Native Token of Polkadot Network. Responsible for the development of the Polkadot ecosystem.
Main functions of DOT:
- Validators: Produce Relay Chain Blocks, responsible for Verifying and Adding new blocks to the Relay Chain.
- Collators: Monitor transactions happening on Para Chains and send proof to Validators to maintain network security.
- Nominate Validators: It’s like I delegate my 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.
Learn more about Network Roles: here.
What is Polkadot?
Polkadot is a Blockchain Platform – multi-Chain, heterogeneous and scalable technology. Allows Blockchains to connect with each other to share data to form a decentralized Network.
Polkadot Development Team
Polkadot is an open source project and anyone is free to contribute to the development of the platform.
Overview of the team, organization and investors
- Personal: Jutta Steiner (CEO of Parity Technologies), Gavin Wood (CWO and Co-Founder of Parity Technologies)
- Organization: Parity Technologies, Web3 Foundation.
- Investors: KR1, Kosmos Capital, zk Capital, BlockAsset Ventures
In addition to the open source community, behind Polkadot is the Web3 Foundation – one of the leading organizations in the Crypto market.
The Web3 Foundation makes financial and technological contributions to Polkadot.
In addition, the Web3 Foundation is also collaborating 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 about Web3 and Web Foundation here.
Polkadot was born for what purpose?
Issues that need to be resolved:
- Limited scalability
Example of Bitcoin and Ethereum – two Single-Blockchain with top adoption.
The average transaction speed per second on the network also only stops at two numbers, while this number in VISA is 24,000 – 40,000. Is it possible for the vast majority of users to switch from VISA to Bitcoin or Ethereum Blockchain?
Blockchain is still new to the vast majority of users. It all needs to be simplified so that everyone can use it like we use the Internet, applying it to work and daily life.
- Low interoperability
For example, when you only have ETH but want to transfer BTC to others, you need a process of putting ETH on the exchange to sell and exchange it for BTC. It looks very simple, but at the moment it costs a lot of money and time for users to switch between parties.
Polkadot proposes his idea of a Mainchain (Relay Chain), a solution to extend Layers 2 (Para Chain) and a bridge to other Blockchains (Bridges Chain). Inside:
- Relay Chain: The Central Chain of Polkadot. It is responsible for connecting Validates the Para chains. In detail, the Validators will Stake DOT above to protect the Network, transactions including network administration. Transaction Fee on Relay Chain will be higher than on Para Chain.
- Para Chain: Is a solution to extend the network of Polkadot. Basic Para Chain is not necessarily a Blockchain. It can be a Dapp or a Data Structure, as long as it can provide a proof that can be Validated by the Validators assigned to that Para Chain. Most of the computation that happens on the entire Polkadot network will happen on the Para Chain.
- Bridges Chain: It can be envisioned as a bridge between Polkadot Network and other Blockchains, providing interoperability between networks.
Overview of the platform design of Pokadot:
Find out more details here.
DOT . Token Distribution
Token Sale DOT
DOT basics for today:
What is outstanding about the Polkadot Project?
Some highlights of Polkadot:
This is basically the same way Tezos is doing, which is Voting to vote on Update Protocol proposals.
- Nominated Proof-of-Stake (NPoS)
NPoS is quite similar to DPoS. Lock your DOT, delegate stake to 1 Validator to confirm and add new block to chain, then Share block reward.
The basic difference here is that the Validators will be randomly selected from qualified people and this will change several times per day.
The design of Para Chains does not require it to be necessarily Blockchain. As long as it can provide verifiable proof by the Validators assigned to it.
All Para Chains connect to Relay Chains through proof of stake on Relay Chain. So the more Para Chains there are, the more secure and secure the Network is.
Interactions on Para Chains are processed in parallel. So transactions can be spread across Para Chains, so that Polkadot Network can process more transactions at the same time.
Substrate can simply be understood as a framework that makes it easier to build Blockchain.
Substrate is not part of Polkadot, but projects built with Substrate can run natively on Polkadot. Substrate can be used to build new Blockchains without waiting for Polkadot Launch Mainnet.
How to earn and own DOT
At the moment there are ways for anyone to earn Polkadot DOT Token.
- Currently you can register and buy and sell tokens on Binance with the pairs DOT/BTC and DOT/USDT.
- Those who have the ability to program, Code can participate in building Polkadot’s ecosystem to receive funding from the Web3 Foundation.
- Join buy and put in wallet to be able to staking
For more details, you should refer to: here.
Functions of DOT with owners
DOT holders will have certain functions within the Polkadot platform, including:
- Ability to act as a Validator, Collator, Nominator or Fisherman
- Possibility to participate in the governance of Polkadot
- Ability to participate in the decision-making process regarding upgrades or changes to Polkadot
Polkadot Governance Protocol
Polkadot will implement a proof of stake protocol. Validator will secure Reply Chain by staking DOT tokens. Join consensus with other validators and validate proof from Collator.
The role of the Collators is to maintain parachains by collecting parachain transactions from users and generating state transition proofs to provide to the Validator.
Finally, Nominator and Fisherman are the nominees who choose good validators and staking DOT, which further secures the reply chain. Fisherman has the function of monitoring the network and proving bad behavior for the validator.
Projects built on Polkadot
The Polkadot ecosystem has wide reach and use. DeFi related crypto projects, crypto wallets, tokens, Oracle, DAO, privacy, exchange, games, IoT, etc.
Some of the famous projects being built on the Polkadot protocol are Chainlink, Ankr, Celer Network, Ocean Protocol, imToken…
- Note: The article is only for the purpose of providing information about Polkadot (DOT) at this time and should not be considered investment advice. Investment Cryptocurrency is a form of risky investment, it takes a lot of knowledge and skills to be able to make money from this market. If you are interested in the article please leave a comment below the support team will contact you.
Based on the chart:
- The long-term trend of the Dot is a very strong uptrend for a long time. But in the short term charts, DOT is facing a small resistance and showing a sideways trend this time around.
- This time needs the patience of investors to be able to wait for clear signals to be able to participate in the market.