Polkadot is a blockchain-connecting protocol that allows value and data to be transferred between previously mismatched networks (Bitcoin and Ethereum, for example).
Ethereum’s Co-founder, Gavin Wood is one of Polkadot’s developers.
It’s also built to be lightweight and scalable. Staking and governance are carried out through the DOT token, which can be traded on Coinbase and other exchanges.
Polkadot, like several other post-Bitcoin coins, is a token and a decentralized protocol that can be purchased and traded on exchanges like Coinbase.
The Polkadot protocol is intended to allow unconnected blockchains to securely communicate with one another, allowing value or data to flow freely between, example, the Ethereum and Bitcoin blockchains.
It’s also built to be fast and scalable, thanks to the usage of multiple parallel blockchains (or “parachains”) that offload much of the processing load from the main blockchain.
The Polkadot token (DOT) has two primary roles on the Polkadot network: it is a governance token that lets holders to vote on the protocol’s future, and it is used for staking, which is how the Polkadot system validates operations and issues fresh DOT.
As part of your investment strategy, you can purchase DOT on exchanges such as Coinbase.
A core blockchain is termed the “relay chain” and several customer parallel chains (or “parachains”) make up the Polkadot network. It also contains a connective layer, or “bridge,” that enables value and data to be moved between many blockchains, as well as non-blockchain databases.
Polkadot is able to analyze so much data because the various parachains take care of a lot of the heavy work for the primary relay chain.
As a result, the Polkadot network can handle over 1,000 transactions per second, compared to around 7 and 30 for Bitcoin and Ethereum, respectively.
As more parachins are added, Polkadot tends to expand its network as its growth rate hits a million transactions per second
Polkadot’s open-source code is maintained by the charity Web3 Foundation, which is a 501(c)(3) organization.
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