How about a cryptocurrency, that is open source, based on the blockchain platform, and allows distributed computing? Polkadot does the same. Like many cryptocurrencies, this token is available on popular exchanges like Coinbase. It is a popular protocol designed to securely undergo unrelated blockchains and communicate with each other. DOT is the crypto token for Polkadot.
- Polkadot is a governance token. It allows the holders to have a say in it’s protocol.
- The token is used for staking. The network verifies transactions to issue new DOT.
- It has a tps(transaction per second) of 1000, compared to 30 for Ethereum and 7 for Bitcoin. The network is growing and adding more parachains. And with the fast-paced developing environment, it will get even faster.
- To verify transactions, secure the network, create and distribute new DOT tokens, they use the Proof-of-Stake mechanism.
Meet The Team
Ethereum’s co-creator Gavin Wood developed Polkadot. The platform launched on May 26, 2020. Web3 Foundation is the primary research organization that maintains open-source code for Polkadot. The crypto platform acquired investment from investment groups like Polychain Capital, Nirvana Capital, and ZK capital.
Should You Invest?
From its all-time low of $3 in August 2020, the price of Polkadot has skyrocketed by over 1000 percent. The reason this token can be a good investment for the year as it has near to 253 projects lined up. The token is currently trading at a price of around $24. Many crypto influential people do believe that Polkadot can be a multi-bagger. The network also provides transactional and economic stability. They partnered with Chainlink to use its Oracle network. While they also launched on Ankr StakeFi to allow DOT holders to stake their cryptocurrency and earn rewards.
With a useful protocol and underlying value, a great team of leaders, and investors, Polkadot can be worth investing in.