With more cryptocurrencies launching almost every day, it’s hard to keep track of what’s new and what’s old. But if you’ve been keeping your eyes peeled, PolkaDot is a recurring term. So, what is it? And why should care about it? Answer to all that and more in this piece.
What is Polkadot?
PolkaDot is a next-generation blockchain, often referred to as a more evolved version of Ethereum. It connects several specialized blockchains into one giant network. It aims to return control the people rather than the internet giants. It’s like Blockchain but with way more benefits.
- Encourages interoperability: It provides a common interface for all the specialized blockchains. Offering cross-chain communication, Polkadot can share information like normal apps on our smart devices. Thus, opens doors for new opportunities and services.
- Scalability: Single blockchains can only undertake a limited amount of traffic. But PolkaDot, being interoperable, means that multiple transactions can occur across different chains. These fragmented chains are called “parachains”.
- Updates easily: Like all software, blockchain needs upgrades to stay relevant. Unlike conventional blockchains that require you to make two transaction histories (which are called forks) which takes a lot of time effort, Polkadot provides for an adaptable and intergraded platform that becomes available for your needs.
- Better Security– It interacts with other chains meaningfully and securely, and it can even be perfected as the conditions require overtime.
Polkadot’s structure is confusing, but I’ve broken it down for you for easier understanding:
- Relay chain: It’s the base Polkadot chain that connects all these individual chains. They can solve interoperability issues between these connecting chains.
- Parachain: They are parallelized chains that run through the network
- Bridge chain: They connect different blockchains that don’t use PolkaDot’s rules and regulations.
Within the network, you have three important people:
- Validators secure the relay chain by staking DOT tokens.
- Nominators select or nominate good validators and stake DOT tokens.
- Fishermen are in charge of promoting good behavior within the network.
Suppose a project wants to raise ETH, but need verification from a private bank. This is where they need a decentralized exchange parachain that allows crypto deposits.
Day by day, the Polkadot ecosystem is growing larger and becoming more promising. Being one of the most well thought out projects in the crypto universe, it enables technology to reach its full potential and opening the way for future Decentralised economies. That’s why it’s not a surprise to see projects like Splyt and Zenlink utilizing Polkadot.