Polkadot is software designed to encourage a global network of computers to perform blockchain processes so that each user can set up their system and run a dedicated blockchain. Polkadot works with the original token called DOT.
In this way, Polkadot is one of the blockchains that competes with other blockchains to grow an ecosystem of digital currencies, including Ethereum, Cosmos, and EOS.
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With all the interpretations, Polkadot was released in 2020 and had one of the latest blockchain technologies with an updated version, and specific goals have been set for it, which we will discuss below.
What is DOT
Polkadot is built to run two types of blockchain: a core network called relay chain whose transactions are permanent and user-created networks known as parachains.
With this design, the Polkadot team claims that it can keep transactions accurate and secure and use them in a way that only requires resource calculations in the main chain. Users can take advantage of customizing parachains for different functions.
The design of this blockchain allows users to execute transactions more efficiently and securely by creating blockchains so that user information is not placed on the public network and among the large population of transactions.
Polkadot has already received about $ 200 million from investors to provide DOT digital currency, one of the most significant initial investments by a blockchain.
If you are one of those users who want to follow the route map of Polkadot projects, you can do so through their official website.
How does Polkadot work?
The Polkadot network allows users to build three types of blockchain:
Relay Chain: Polkadot is the leading blockchain in which transactions are performed and recorded. To achieve more speed, the relay chain is split to add new transactions so that the transaction approval rate can be done more quickly. This model allows Polkadot to authenticate more than 1000 transactions per second.
Parachains: The Parachains blockchain is a custom network that uses the relay chain’s computational resources to authenticate transactions.
Bridges: This chain type allows the Polkadot network to communicate with other off-grid blockchains. With the creation of new bridges towards blockchains such as EOS, Cosmos, Ethereum, and Bitcoin, users can exchange their digital currencies.
The Relay Chain
To maintain system state validation, the Relay chain in Polkadot uses PoS-based Consensus algorithms known as NPoS. This system allows anyone who wants to stack DOT by locking a cryptocurrency in a specific contract to play different roles:
- Validators: This role involves validating data in Parachain blocks. They can also participate in the consensus and vote on possible changes to the network.
- Nominators: Secure the Relay Chain network with valid verifiers. Nominators also delegate their shareholder DOT tokens to credentials and assign their votes to them.
- Collators: Nodes that maintain and execute a complete history of each Parachain and total transactions in blocks.
- Fisherman: Inspects the Polkadot network and reports confirmation issues.
- Users who stack DOT and have these roles can also receive DOT as a reward.
Different users with different roles in Polkadot can influence software development and networking. These include the following:
DOT Holders: Anyone who buys DOT tokens can use their tokens to make changes to the network or possible future changes.
Council: This role is determined by DOT shareholders. Council members are responsible for setting up changes and determining which changes to the software are made by DOT shareholders.
Technical Committee: Composed of teams that actively build Polkadot. This group can submit specific proposals in times of emergency. The members of the Council appoint the members of the Technical Committee.
Polkadot DOT main features
What are the main features of Polkadot, and how it differs from Ethereum is a question that many digital currency users have in mind? Polkadot was introduced as a more developed blockchain network than Ethereum based on a similar structure. This means that Ethereum 2.0 has many similarities with Polkadot.
Both networks have a core blockchain in which transactions are performed, and the standards are almost identical. Their technologies use Staking instead of Mining to keep the network updated. Many transactions are exchanged daily between Ethereum and Polkadot blockchains, but the exact amount is unknown. However, the new technology is designed to allow users to do and use Ethereum code to run it on Polkadot.
Developers can use the Polkadot development framework to simulate Ethereum blockchain copy to implement better and faster designs on their network.
Polkadot was founded in 2020 and currently has one of the fastest blockchains globally. The three subnets Relay chain, Parachain, and Bridges are the main components of this system, each of which has its functions. Polkadot works with the original DOT digital currency and has received one of the most significant investments based on this digital currency to date.