What is Polkadot? Polkadot Explained

What would the crypto space look like if all 
blockchains had a common link to one another? Something like a superhighway for blockchains 
where Ethereum connected to Cardano and Bitcoin,   Bitcoin connected to Tezos 
and VeChain. Tron to Litecoin. Join us as we take a peek 
into THE chain to connect   all other blockchains – Let’s connect 
the dots and answer the question… What is Polkadot?

Launched in 2016, Polkadot is the   brainchild of Gavin Wood, an Ethereum co-founder 
and creator of Solidity, the programming language   used by Ethereum. Polkadot is now run by Web3 
Foundation and developed by Parity Technologies,   both of which Gavin is a co-founder of. Polkadot 
is what Gavin Wood envisioned as the next version   of Ethereum, and THIS is how it works.

The current blockchain landscape is,   at best, fragmented, with multiple, independent 
blockchains all operating in isolation. As yet,   there is no efficient way for these separate 
chains to operate and communicate with each other   to share data, transact, or exchange value.

Polkadot is working to correct this by providing   for the first time—cross-chain interoperability. 
Polkadot will allow any blockchain: private and   public, permissioned and permissionless, as well 
as oracles and decentralized apps to talk to   each other and be connected in a trustless way 
under a single decentralized Polkadot umbrella.

Here’s a few examples of how this could work. A smart contract event on Ethereum 
triggers a payment on the Bitcoin network
  An oracle that feeds price data to dozens 
of different blockchains at the same time
  This is why Polkadot is being 
called the Internet of Blockchains.   Like the Internet, Polkadot will 
behave as an interoperable network   connecting all blockchains.

How does it do this? Polkadot   will achieve it through the Polkadot Relay 
Chain, parachains and connectors called bridges.

Polkadot’s Relay Chain is the core 
layer of the network and acts like   a bookkeeper overlooking all network transactions. Parachains are the second layer. They’re 
made up of individual blockchains all   connected in parallel. Hence, parallel 
chains or para-chains. Para-chains allow   multiple chains to run simultaneously to enable 
scalability and increase transaction speed.   They can be bought by cryptocurrency 
companies and customized to suit their needs.
  Thirdly, bridges. Polkadot will use Bridges to 
connect to difficult or established blockchains   like Bitcoin and Ethereum by writing 
a break-in or a break-out smart   contract that will allow these chains to 
communicate with the Polkadot network. But why is connecting blockchains valuable? And 
can Polkadot truly support the ever increasing   number of blockchains? Click the link above to 
read more about Polkadot in the Exodus blog.
  Ok. Now that we know what Polkadot 
is, let’s dig into DOT. What exactly   is it and what is it used for?

$DOT is the native token of the   Polkadot network and is used for 3 main 
things: Governance, Staking and Bonding.

First, Governance. All DOT token holders are 
given the right to vote over decisions that   govern the network, such as upgrades or changing 
network fees. Votes are weighted according to the   amount of tokens, and the agreed time period 
that the tokens are locked up with the vote.
  Next, Polkadot Staking. DOT holders 
can help secure the Polkadot network   by staking their tokens to the network as 
validators and nominators.

Validators take   part in the minting of blocks while nominators 
back these validators up. Both provide important   security functions, and therefore receive 
$DOT as payout rewards as incentives. And third, Bonding. As mentioned earlier, 
Parachains can be bought. In order to buy   a parachain a user has to “bond” DOT 
in order to control the parachain.   Bonding ties DOT tokens to the Relay 
Chain whenever a new parachain is added. Polkadot aspires to build a multichain universe, 
where multiple blockchains can co-exist and   operate together to create a more vibrant, 
interoperable mega-system of blockchains. How do you envision an internet of blockchains 
working for you? Is this all hype or do you see   real value coming to your life because of it? 
Please share your thoughts in the comments.

And if you’re a $DOT crypto token holder, 
let us know your Polkadot price prediction.
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