Summary
It positions itself as a new generation of blockchain protocol that can bring together multiple professional chains into a universal network. Polkadot was created by the Web3 Foundation and is committed to providing infrastructure for Web 3.0, which aims to break the Internet monopoly and empower individual users.
Introduction
Blockchain has been around since the advent of Bitcoin. Although it has been called a breakthrough technology, it also has some flaws. Currently, independent blockchains cannot communicate with each other. If interoperability can be introduced, different blockchains can exchange data and give birth to more powerful applications and services.
Developers have tried to "bridge" between blockchains to enable collaboration between two blockchains. However, connecting many blockchains (such as hundreds or thousands) at the same time is still a problem that needs to be solved. The Polkadot team and even the Web3 Foundation are confident that they can launch a high-quality solution within a few years.
What is Polkadot?
Polkadot is known as "an open source protocol built for all mankind" and claims to be "the next stop in the development of blockchain technology." The concept of Polkadot was originally proposed by Dr. Gavin Wood, co-founder of Ethereum. The development team hopes to focus on the security, scalability and innovation of blockchain. To do this, it is necessary to create an infrastructure that supports new ideas and concepts while ensuring interoperability.
The individual blockchains within the Polkadot ecosystem are called parachains (parallel blockchains), and the main chain is called the "relay chain", and the two can always exchange information easily and quickly. Parachains are similar to independent shards in the Ethereum 2.0 implementation plan.
Developers, businesses or individuals can customize parachains through Substrate, a framework for creating cryptocurrencies and decentralized systems. Once the customized blockchain is connected to the Polkadot network, it can interoperate with other parachains.
The above design makes it easier to build cross-chain applications, products and services. Before this, large-scale cross-chain transfer of data or assets was difficult to achieve.
The data security and verification of the parachain are completed by the network verifiers. A small number of verifiers can ensure the security of multiple parachains. The verifiers are also responsible for ensuring that transaction information can be smoothly transmitted between multiple parachains, improving the scalability of the network.
Advantages of Polkadot
The Polkadot ecosystem has many advantages for developers. The limitations of current blockchains have created some core issues, including: scalability, customization, interoperability, network governance and upgradeability.
In terms of scalability, Polkadot solves many problems. As a multi-chain network, it supports parallel transmission of multiple independent blockchains, clearing a major obstacle in the field of blockchain technology. Parallel processing is a major breakthrough in the blockchain field, which will pave the way for the global application of blockchain.
Users who need a customized blockchain can dig deeper into Polkadot’s other features. Currently, there is no “one size fits all” blockchain infrastructure that meets all project needs. Every project has unique needs, and Polkadot is optimized to support independent blockchains to achieve personalized features. With the support of Substrate, developers can effectively adjust their independent blockchains according to project needs.
Ensuring seamless integration between projects and applications and enabling data sharing are important means of improving interoperability. Although it is not yet clear what products and services will eventually be available, there are indeed many potential use cases. Polkadot has the ability to create a new financial ecosystem, and each parachain only needs to implement a specific function.
Specific parachains can be independently operated and managed by the relevant communities in an exclusive manner. In addition, each community is an integral part of the entire Polkadot network and has a significant impact on the future governance of Polkadot. Feedback collected from the community will provide valuable advice for the development of the Polkadot project.
In addition, Polkadot supports parallel chain upgrades, and the process is extremely simple. Native chains avoid hard forks that may split the community, and upgrade smoothly in a frictionless way.
DOT Token Explained
Polkadot is similar to other blockchain infrastructure projects and also has a native token. Just as ETH is the token of Ethereum and BTC is the token of Bitcoin, DOT is the network token of Polkadot.
The use cases of this token are as follows: First, it gives token holders governance rights over the Polkadot platform, including determining network fees, voting for overall network upgrades, and deploying or removing parachains.
In addition, staking DOTs can facilitate network consensus. Similar to other networks that support staking, the staking mechanism incentivizes DOT holders to always follow the rules. Why does this work? Because if users do not follow the rules, they will lose the staked tokens.
The third use case is to use DOT for bonding. When a new parachain joins the Polkadot ecosystem, it needs to bond DOT. During the bonding period, DOT is locked. After the bonding period ends and the parachain is removed from the ecosystem, the DOT will be released.
Staking and Bonding on the Polkadot Platform
In addition to data and asset trading, Polkadot also improves interoperability through other methods. It introduces token staking and token bonding mechanisms to incentivize users to act in good faith.
The concept of token staking on blockchain networks is old. This consensus model, called Proof of Stake (PoS), works by providing rewards to users who stake tokens in the network. On the Polkadot platform, honest stakers are rewarded, while those who misbehave will lose their staked tokens.
As mentioned above, new parachains are connected to the network by bonding DOT tokens. "Bonding" means depositing tokens into the network for a specific period of time. Blockchains that have lost their value and projects that are no longer maintained will be removed and the bound tokens will be "returned to their original owners."
Summarize
In theory, Polkadot is attractive to developers in many ways. In addition to independent developers, the Polkadot ecosystem is also suitable for small companies and large enterprises. It supports the deployment of customized blockchains according to personalized needs, and upgrades and iterations are very simple. This new concept is beneficial to the development of the entire cryptocurrency field.
Currently, the Polkadot ecosystem is just getting started. A large number of projects are in the development stage, and it will take some time before the first batch of major projects go online. According to PolkaProject data, there are currently hundreds of projects under development, including wallets, infrastructure projects, tools, and decentralized applications (DApps).
The founder of Polkadot said that although the DOT token has monetary value on the trading platform, its main value lies not in speculation, but in the use cases mentioned above.
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