About Polkadot (DOT)
Polkadot (DOT) is a blockchain launched in 2016 by Gavin Wood, Ethereum's former CTO and co-founder. It allows developers to create customized interoperable parachains, or blockchains deployed from the Polkadot mainnet. Each parachain connects to the main relay chain, allowing them to communicate and share in the security measures of the mainnet.
The benefits of developing on Polkadot include parachains having their own modified proof-of-stake (PoS) consensus mechanism, decentralized app (DApp) development, and tokens. Space for Parachains is limited and regularly auctioned off for DOT, Polkadotâs native cryptocurrency token. DOT price is updated live on Binance.
DOT has four primary uses cases:
Holders can vote on project changes through Polkadot's governance mechanism.
Users can pay network transaction fees on the Relay Chain and some Parachains.
The token is staked to validate transactions.
DOT can be bonded to start new Parachains.
DOT has an unlimited supply, making it an inflationary token. The network pays out rewards to validators equally, regardless of the amount staked. Polkadot's creators have stated that their token isn't designed for speculation but instead, for the use cases mentioned above. DOT price can be viewed and monitored on Binance.
Polkadot is widely regarded as having achieved considerable success in sharing data and information among its multiple Parachains, decentralized projects, and DApps.
Interoperability has been a recurring issue for blockchains ever since Bitcoin was launched. Polkadot was one of the first projects to work towards developing solutions to address this issue. Polkadot is also considered a scalable blockchain network that can process transactions simultaneously across all the different chains on its network.