What Is Polkadot (DOT) and How To Trade It Against Bitcoin on LocalBitcoins? Vlad Explains..

– Hey, LocalBitcoins family. My name is Vlad and
it's time to review one of our latest new
cryptocurrency payment methods. And that payment method is Polkadot. Polkadot is a cryptocurrency project that has a very ambitious plan, and that is trying to connect different blockchains together. So after watching this video, you will understand why
Polkadot is important, what the project's DOT token does, and how you can trade Polkadot against Bitcoin on LocalBitcoins. (upbeat music) Bitcoin is not the only cryptocurrency you can trade on LocalBitcoins. It's also possible to use
many other cryptocurrencies as payment methods when buying and selling Bitcoin. If crypto interests you, make sure to gently tap the Like button, subscribe to our LocalBitcoins
TV YouTube channel, and click on all notifications so you will never miss a video we put out. (screen whooshing) Now, today we are covering one of the most exciting cryptos
of the year 2021: Polkadot. But before we take a look at Polkadot, there's something I need
to get off my chest. Here it comes. I'm not a financial advisor, so everything I say about Polkadot or any other cryptocurrency on this video is not financial advice.

Cryptocurrency investing and trading is all about doing your own research and making your financial
decisions based on that research. Now, with that disclaimer out of the way, let's jump into Polkadot. (screen whooshing) As you may well know, Bitcoin's blockchain is not
the only blockchain out there. Many other cryptocurrency projects have built their own blockchains, not necessarily to compete against Bitcoin but to build additional use cases, such as decentralized lending and borrowing through smart contracts.

These cryptocurrencies
include, for example, Ethereum and Cardano. If you want to learn more about Ethereum, you can watch our
Ethereum review over here. (screen whooshing) And if you are still wondering what Cardano is, make sure to also watch this Cardano review popping up over here. (screen whooshing) Now, Polkadot is not trying to directly compete
against Ethereum, Cardano or other smart contract platforms but trying to connect them together. The problem with having
many other blockchains is that the blockchains can't
interact with one another.

And because of this, the cryptocurrencies
within these blockchains are siloed into their own walled gardens. Imagine having this beautiful world of different blockchains that could be better stronger, and even more beautiful together if they only removed the
high walls between them. Polkadot is trying to do just that. Its aim is to create an
internet of blockchains so that cryptocurrencies on one blockchain can interact with cryptocurrencies on the other blockchain. In Polkadot's ecosystem, there are so-called relay chains and parachains, which are
a little bit technical and outside the scope of this
brief introductory video, but to put it simply, the structure kind of reminds of a hub and spoke model.

Polkadot is kind of like a hub of a wheel and the other blockchains
that are connecting to this hub are the spokes of the wheel. (screen whooshing) Now, the creator behind
Polkadot is Gavin Wood, who was also one of the
founders of Ethereum, the most popular smart contracts platform. When Ethereum launched, he was
the chief technical officer of the project. He also created Solidity, the popular programming language for smart contracts on Ethereum. Also, Polkadot's whitepaper
was published already in December 2016. So it's actually one of the oldest cryptocurrency
projects out there. (screen whooshing) So what about Polkadot's
native token, DOT, that you can trade against
Bitcoin on LocalBitcoins? It does many things. So first of all, it is used
to pay transactions fees in the Polkadot's ecosystem. Second, it's used for staking, and this is how Polkadot's
blockchain gets its security. The more a validator stakes the DOT token, the more he or she will receive DOT tokens as staking rewards. Thirdly, DOT tokens are
also used for governance. The more DOT you hold, the more voting power you have whenever there's a vote on which direction the
Polkadot project is heading.

There's also a fourth factor that has the possibility to make the DOT token
valuable in the market. Blockchain projects participating as Polkadot parachains. Remember, the spokes in the wheel, have to stake DOT to
secure a parachain slot in the Polkadot ecosystem. This activity takes DOT away from the open market and reduces the token's supply. (screen whooshing) Now, you might be wondering, okay, so how to get some of that DOT? Well, on LocalBitcoins obviously. On LocalBitcoins, you
can trade your Bitcoin to Polkadot or vice versa. For example, if you want
to own some Polkadot, and you already have Bitcoin, just create a sell ad and state in your ad
that you accept Polkadot as a payment method. By contrast, if you have Polkadot and you decide that you want
to trade them to Bitcoin, create a buy ad and state in the ad that you are willing to pay in Polkadot. You can also, of course,
browse through other users' ads and see if they accept Polkadot as a payment method.

(screen whooshing) Please do note that we don't currently
support Polkadot natively. This means that to store Polkadot, you need to have your own Polkadot wallet. (screen whooshing) Now, that's it for today's video. I hope I gave you a good short overview so you will be able to
learn more by yourself. And I've got a question for you. What do you think will
be the hottest crypto of the later half of 2021? Will it be Polkadot? Or will it be some other cryptocurrency? Or is it gonna be the good old Bitcoin? Let us know down below in the comments. And make sure to also share this video with your friends and family in case they have been
wondering what Polkadot is. Thank you for watching this video. Until next time, bye. (lively music).

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