Skip to content Skip to sidebar Skip to footer

What are Polkadots? New Crypto That Becomes Target for Traders

What is Polkadot – In today's digital era, cryptocurrency and blockchain are two things that cannot be separated from each other. One type of product from cryptocurrencies that has the potential and has a large level of profit in the future, namely polka dots or DOT. Like Cardano (ADA), polka-dot (DOT) is a part of cryptocurrency and has grown so rapidly, as of 2020.

For those of you who want to dive into investing in crypto, at least you have to prepare a large enough capital.

Polkadot can be an alternative for those of you who want to invest in one of the crypto currencies. Polkadot can be an option because the price offered is relatively affordable and has a very good value in the future.

Before starting to invest in crypto currency, polka dots, it's a good idea to read the explanation in this article carefully.

This is so that you can get an idea of ​​​​investing in cryptocurrencies. So, do not happen or minimize things that are not desirable.

Polkadots New Crypto That Becomes Target for Traders

What Is Polka Dot (DOT)?

    What are Polka dots? Polkadot (DOT) is a type of cryptocurrency with a blockchain base that can connect several networks with the help of parachain, bridges, and main-chain systems, so that polkadot can process at least 1,000 transactions per second.

    Polkadot is an open-source multichain sharding protocol that facilitates cross-chain transfers of any data or asset type, not just tokens, thus making various blockchains interoperable with each other.

    Polkadot is an open-source multichain sharding protocol that is able to facilitate cross-chain transfers of data and/or other types of assets.

    In polka dots, you can do various kinds of transactions. Not only by using tokens, but can use blockchain to operate with others.

    Polka-dot Components (DOT)

    There are at least four kinds of polka-dot components that you should know, look at the four components:

    1. Relay Chain

    This component has a very vital function, namely creating a consensus and interoperability. In addition, relay chains are also able to maintain security systems in all types of various network chains.

    2. Parachains

    One of the components in other polka-dot coins, namely parachains or also called independent chains. This component has the advantage of having its own token and being able to optimize for certain use cases.

    3. Parathreads

    At first glance, this component looks the same as the parachains component. The parathread component has flexible connectivity because it is based on a pay model system that is adapted to economical use.

    4. Bridges

    Bridges are the fourth component of polka dots. This component has a function, which allows parachains and parathreads components to be able to connect and interact with ethereum which is an external part of the blockchain.

    The Uniqueness of Polkadot Compared to Other Crypto

    Each crypto coin has its own uniqueness, as well as the polka dot cryptocurrency. Polkadot is a crypto coin originating from a multichain sharded network, which means that this currency is capable of carrying out multiple transactions that occur on multiple chains that are carried out in parallel.

    In this case, the blockchain is made specifically and has a level of effectiveness and efficiency so that it is easy to develop through a subtract framework. Thus, the blockchain can connect to the polka-dot network in just a matter of minutes.

    The network has a system management based on an effective user base to carry out security. The community can make adjustments to blockchain governance in the polka dot crypto coin according to their needs and conditions.

    Validators, collators, and nominees have a function, namely as security and maintaining network quality on polka dots.

    Number of Polkadot Tokens (DOT) Available

    In early August 2020, at least the available Polkadot (DOT) token slots reached 1 billion tokens. This follows the redenomination of the network originating from the supply or maximum supply at the beginning of the current month of the year.

    The redenomination is carried out with the aim of minimizing the use of small decimals and making calculations look more efficient and easy. On the other hand, all balances will experience a significant increase without affecting the distribution system in the DOT or the proportional share of the holders.

    Overall, these changes have an impact on Polkadot's smallest unit, the Planck. The number of plancks a user has is constant (does not change). Every user who has 1 billion plancks still has the same number of plancks, but still has 100 DOTs under the new denomination. It looks different from the old denomination which amounts to one DOT.

    Get to know the Polkadot Network Security System

    The mass interoperability of the polka dot crypto coin is created from a common validator set that serves as a security on multiple blockchains and allows users to carry out transactions by spreading data on parachains.

    The network uses the NPoS or nominated proof of stake method to select validators and nominees and optimize chain security.

    This unique validity scheme allows chains to interact with each other securely.

    Place to Purchase Polka dots (DOT)

    Currently, Binance, HBTC, OKEx, Huobi Global, and Binance KR are top for trading tools on the Polkadot cryptocurrency (DOT). You can get the cryptocurrency on the coin marketplace site.

    You can also make purchases with cryptocurrencies, such as Ethereum and Bitcoin directly through payments made by credit cards in the fiat currency of your choice.

    Price of a Polka-dotted Crypto Coin on Marketplace

    Currently, the price of Polkadot is in the range of $18.56 with a 24-hour trading volume of $797,460,170. Within 24 hours, the price of the polka dots rose by around 3.0 %. Currently, the supply of the cryptocurrency is 1 billion DOT Polkadot coins.

    Polkadot is often thought of as a set of independent chains, such as Ethereum, Ethereum Classic, Bitcoin, and Namecoin.

    At least, more than one parachains originating from Polkadot will be rendered based on the Polkadot runtime Environment SDK or Substrate Parity Technologies.

    How does the polka dot system work?

    Each crypto coin has a different way of working from the others, as well as the level of profit obtained. Through this article, you will find out how the polka-dot system works and its advantages that are different from other cryptocurrencies.

    Blockchain is able to connect with polka dots through a parallel work system because of the parachain that can be removed or added. These parachains are sometimes in the form of public, private, or other source blockchains.

    The data contained in the network, then accessed with special codes (collators), later the code will be sent to the polkadot.

    Polkadot Advantage

    The following are some of the advantages of polka dots that we will explain to you. Pay close attention to the explanations in the article below:

    1. Specialization

    Each polkadot-owned parachain can be adapted to a number of use cases through the app.

    2. Upgrade Without Hard Fork

    When you start using polka dots, you don't have to worry about updating.

    The specialty of polka-dots is that this cryptocurrency can update without having a hard fork that takes up too much time. The addition of this feature does not have to make changes to the network.

    3. Sability

    In polkadot at least more than one blockchain network has been supported through parachain and/or sharding mechanisms. The existence of this system makes the process run more efficient and directed.

    4. Interoperability

    The entire parachain contained in the polkadot application can provide information and functionality to each other due to the interoperability of the project design and compatibility between networks.

    After knowing what information Polkadot is, are you ready to make cryptocurrency transactions with Polkadot (DOT)?