Polkadot is a protocol that tries to solve the same problems that Bitcoin and Ethereum are trying to, but it does so in a different way. As such, the Polkadot cryptocurrency (DOT) has its own blockchain and smart contracts platform. The goal of Polkadot is to create a platform where blockchains can link together through a “parachain.” This allows for cross-platform applications. Users can then access the DApps on another blockchain without ever leaving Polkadot, meaning it is interoperable with several different blockchains that are connected.
What is the Purpose of Polkadot?
It should be made clear that Polkadot isn’t trying to compete with more popular currencies like Bitcoin or Ethereum (although there will likely be some overlap in functionality, since they are interoperable), but rather it aims to provide a means of implementing blockchains on a more universal scale. In theory, this would allow for easier implementation of cross-platform DApps and other decentralized applications. It also has another unique feature in that it can be used to link together “universes” of various different blockchains.
It should also be noted that the Polkadot coin (DOT) is not necessary for running or creating DApps on the platform. Rather, it’s meant to be a means of payment between users and nodes which run the network. The DOT token also plays a role in securing the blockchain by allowing users to deposit them when they are “fishing.” This can act as a method of ensuring that users continue to hold up their end of the deal and remain honest. It is also possible for third party developers to build on top of Polkadot, but it will not be mandatory.
How Does it Work?
The parachain and the relay chain
Polkadot is composed of two main chains: The relay chain and the parachain. The relay chain acts as a sort of global settlement layer, which uses a special kind of proof-of-stake to divide up the network into different “universes.” These universes are then further divided into different parachains. Parachains are their own blockchains that have their own consensus mechanisms, but they remain interoperable with other chains through Polkadot itself. The relay chain also helps to create this inter-blockchain communication.
Each parachain has its own code and blockchain system, while Polkadot is a shared pool of bonded DOTs. The DOT tokens are used to secure the network and ensure that it remains safe for other users. Additionally, interchain communication can be made possible with interblockchain communication, which acts as a way to link together separate chains in order to transfer information from one chain to another. This ensures that the chains remain interoperable.
Who is the Team Behind Polkadot?
Polkadot has rather large team of developers who are hoping to see their idea come to fruition. The project is headed by Gavin Wood, who is one of the co-founders of Ethereum and its former CTO. He is joined by Jutta Steiner, who is also a former member of the Ethereum team. The rest of the team consists of other experienced developers and researchers from around the world.
How Will It Work?
The two-token system will be used for transactions on Polkadot, which are made possible through DOTs and Bridge tokens (BRDG). The BRDG tokens themselves will not be used for transactions and will instead be used to secure the network. Their main role is in linking blockchains together, which creates a sort of “bridge” between them. Additionally, they can also be burned in order to reset their value and create another bridge token with another chain. This would allow for cross-chain interactions that are always available.