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Polkadot is an open source project that connects multiple blockchains in the same network, ensuring security and better performance.
Polkadot allows the operability of different blockchains with very opposite properties. Its main goal is to reshape the structure of the internet by giving control back to people over monopolies. By enabling the interaction of distinct blockchains it provides several advantages such as scalability, working together with opposing workings and greater autonomy to the participating networks.
History of Polkadot
This project was born from the need of the community to build a platform capable of working with different blockchains at the same time, in a decentralized way. All this with the aim that this platform can adapt to constant changes in the network.
Polkadot’s story begins with its first whitepaper in October 2016, however, the project was not created immediately. The Polkadot whitepaper was presented by Gavin Wood, who is also a co-founder of Ethereum and the company Parity Technologies.
The main proposal was to serve as a connection point between public and private blockchains, allowing the portability of information between different companies or with a different operation. Its main objectives also include scalability, working together, governance autonomy and achieving constant updating between all blockchains.
After a year of publicizing the project, in mid-2017 Wood created the company called Web3 Foundation which, in collaboration with Technologies, would be in charge of launching the project in 2020. Finally, in October 2017 an ICO (Initial Cryptocurrency Offering) of Polkadot was launched which went down in history as one of the most successful of the moment.
In this ICO, a total of 5 million tokens were offered at a price of 30 dollars each. By the third day, all the assets had been sold, thus raising some 150 million dollars. The coin itself was very successful, since only two months later it quadrupled its initial value, reaching a capitalization of more than 600 million dollars.
How does it work?
The operation of the platform is based on the Substrate blockchain framework. The applications based on this platform have the characteristic of being able to exchange data between them. In other words, Polkadot allows exchange and interoperability in its network and can be extended to each new user.
Another of Polkadot’s main features is that it operates under the Proof of Stake (PoF) consensus algorithm. Polkadot has its own token called DOT. Under this consensus the owners of the platform’s cryptocurrencies (DOT) can operate as network validators and also cast their voting power on decisions made regarding changes to the platform.
The DOT, in addition to supporting the platform, works as an incentive for the collaborators in the network, since the more DOTs they have, the more participation and control they will have over the protocol. This operation has a dual purpose, since the owners of the cryptocurrency have control over the security of the entire network, which falls into the hands of those who want to keep it afloat.
To maintain the current performance, Polkadot has three fundamental components.
- Core Network: This is the fundamental component of the network that is the backbone of the system. Data exchanges and operations between the blockchains are carried out in this network.
- Parachains: Parachains are networks that operate in parallel acting as a two-way channel for the exchange of information with the backbone.
- Bridges: They figure as the link points for exchange between other blockchain networks with their own consensus mechanism such as Ethereum.
In addition to the fundamental components of the network we find as key points of its operation 4 other parts.
On the one hand, there are the nominators, who function as trusted validators that secure the network.
The validators are also a key point in the operation, since they are in charge of sealing the network blocks.
The third point is the classifiers, in charge of maintaining the blocks and the information necessary to create new network blocks.
Lastly, there are the fishermen, who are in charge of finding malicious behavior on the network.
If you decide to buy Polkadot you will need a wallet to store your assets. Here are some of the most recommended wallets to store this cryptocurrency.
- Among the most secure wallets we find the Ledger Nano hadware wallet. This wallet guarantees great security for our assets. In addition to Polkadot, it allows the storage of other tokens.
- Another of the most recommended wallets to store Polkadot is Polkawallet. This wallet allows the storage of several assets, including Polkadot. It also has a very simple interface ideal for getting started in the world of cryptocurrencies.
- Another option is the Lunie wallet. This is very similar to Polkawallet although it is open source and is also available in a mobile version.