23 Sep All about DOT
What is DOT?
The multi-platform Polkadot (ticker symbol DOT) is designed to merge all existing blockchains into a single global ecosystem. Its ease of interoperability with other platforms and flexible modular design immediately ensured the popularity of the Polkadot project among market participants. In addition, the uniqueness of the technology and the ability to work with smart contracts on one platform and communicate with other users on another was a solution to the interoperability of decentralised platforms.
Gavin Wood, one of the developers of the Ethereum network, left the project and created his own cryptocurrency, Polkadot. He had previously worked on creating the Solidity programming language for smart contracts on the Ethereum network.
During its initial coin offering, Polkadot raised $140 million, ensuring the platform's position as one of the best-funded projects in the industry. Wood's developments in Ethereum became the basis for Polkadot.
DOT is an internal token of one of the Web3 Foundation's largest projects, a Swiss company that helps develop and maintain decentralized protocols and their applications. The company aims to create an Internet in which digital transactions are secure, participants have full ownership of their information, and data and asset exchanges are based on decentralized governance.
Characteristics of Polkadot
Polkadot cryptocurrency is a leader in technological developments in decentralised finance.
The ecosystem allows the use of slidechain, which increases the bandwidth of the network.
The network has the ability to create time slots to connect different blockchains, which reduces costs.
With DOT coin, transactions can be made between blockchains.
The project provides confidentiality of information about the participants and their transactions.
The coin began trading in late August 2020 at $2.8. Thereafter, it gradually rose, reaching $47.95 in May 2021. It then corrected slightly to the $30 level.
Polkadot is a parachain network, meaning it can be used to create new blockchains. Polkadot-based projects are independent, they have internal tokens and can customize the functionality to suit their needs, all the benefits of Polkadot. This means that they can work with other projects on the network.
Auctions allocate places for such projects, as the number of places is limited. The project cooperates with the following blockchain protocols: Snowfork, ChainX, Interlay and many others. In addition, in April 2021, Tether management announced the launch of a USDT token on the Polkadot parachain.
From all of the above, we can assume that the Polkadot project has great prospects for future development due to its high technology, experience and expertise of the development team, decentralized governance model, and the ability to easily interact with other blockchains and create projects and issue coins in the Polkadot network.