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What is Polkadot DOT A beginner's guide to the decentralized Web 3.0 blockchain
The Polkadot crypto project is a next-generation blockchain that attempts to promote a heterogeneous multi-chain framework. It has garnered extreme attention from an entire community of investors, developers and users and is considered to be one of the most innovative projects in the cryptocurrency space.
Powered by the DOT, the network’s native coin, the Polkadot ecosystem tries to resolve many of the limitations that blockchains currently hold, like scalability and security. It serves as a solution that implements the technology’s distinctive features conjointly.
The project was conceived in 2016 and it took it a couple of years to materialize. The DOT token did not hit the market until August 2020, and its ultimate recognition was granted in June 2021 when Polkadot was listed on Coinbase.
Why is Polkadot considered innovative? Generally, the unique properties of blockchains are decentralization, speed, and security rustless environment. While most blockchains tend to offer one — or just a few — of these distinguishing traits, their current architecture is not built to sustain all of the features at once.
Ethereum, for instance, is the most popular platform for DApps. Still, it is currently not very scalable and carries exceptionally high fees, particularly when traffic on the platform is high. EOS, on the other hand, secures fast and zero-fee transactions at the expense of decentralization.
All these networks are isolated from each other, with little to no information exchanged between them. Think of different banks, for example, that were not allowed to interact — we would not be able to transfer money smoothly from one bank to another.
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