Polkadot is a decentralized network of blockchains that emphasizes interoperability and scalability. Interoperability is the ability for different systems to communicate and function together. Polkadot is designed to connect private and public blockchains, oracles, and future technologies that have not yet been created. This is done with so-called parachains, or parallel blockchains, that work alongside its main chain called the "Relay chain". In short, it is a platform that allows blockchains to transfer value and data between each other in a reliable manner. Therefore, Polkadot is often said to enable "multichain" technology.
DOT is the name of Polkadot's cryptocurrency. There will never be more than 1.1 billion DOT. Currently, there are approximately one billion units in circulation. Anyone who buys DOT can use their coins to propose changes to the network as well as approve or reject major changes proposed by others. DOT is also used for staking.
A parachain is capable of self-governing. It is not dependent on the main chain and can therefore create its own token or cryptocurrency. In other words, a parachain can focus on a single component without existing in isolation. Thanks to this technical setup, many specialized blockchains can communicate within Polkadot, allowing for the sharing of data, value, assets, tokens, etc. Combined with the finalization component of the ”Relay chain”, these blockchains can create an efficient and secure network.
How does Polkadot work?
The main Polkadot blockchain is called the “Relay chain,” and it is where transactions are finalized. On this main chain, the process of adding new transactions to the chain is separate from the process of verifying that these transactions are correct. By separating these two processes, Polkadot can process more transactions faster. Polkadot can currently process over 1,000 transactions per second. “Parachains,” or parallel chains, are custom blockchains that use the relay chain’s computing resources to verify the accuracy of transactions. Another feature of Polkadot is its “bridges,” which enable the Polkadot network to interact with other blockchains, allowing tokens and coins to be swapped without a centralized exchange.
Get started with 3 easy steps
Download the Safello App
Login with Mobile BankID
Select which cryptocurrency you want to buy and pay easily with direct payment
Polkadot's website: https://polkadot.network/
Polkadot's white paper: https://polkadot.network/whitepaper/
Polkadot on Wikipedia: https://wiki.polkadot.network/docs/getting-started