πŸ”₯ Polkadot Wiki - DOT course, cryptocurrency & more!

At Polkadot, the concept of heterogeneous multichain and translation architecture is pursued, where the focus is on the connection of individually adapted sidechains with the public blockchains. This means that Polkadot plans to get various blockchains on a platform in a secure and trustworthy way, via which the exchange can then take place. By the way, behind Polkadot is Gavin Wood, not unknown in the crypto scene, he is the co-founder of Ethereum.

Polkadot website

Polkadot first attracted attention when in October 2017 a sum of almost 145 million US dollars was raised as part of the Initial Coin Offering.

The project is also supported by the Web3 Foundation. It is a Swiss NGO that aims to produce applications such as technologies in the field of decentralized web software protocols. Here especially with a view to modern as well as cryptographic methods. In the end, you want the stabilization and promotion of a Web3 ecosystem.

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How it works

The core is called the relay chain. This is, so to speak, the central blockchain from Polkadot. This is where the states of the blockchains called parachains are managed. The tokensthat are used on the relay chain are called DOTS. You need this to start the new blockchains and then to connect them to the relay chain. Furthermore, the DOTS are also important for the gonvernance and consensus-building models. It should be noted that DOTS are inflationary.

Polkadot Connecting the Dots

The so-called relay chain only offers a very limited space for so-called parachains. The goal? The aim is to increase the number of available slots to 100 in the course of the introductory phase. In the long run, there are also plans to introduce nested relay chains - that is, nested relay chains. Thus it is possible - at least in theory - to be able to execute an unlimited number of blockchains, which then run on the basis of Polkadot. The slots of the relay chain are then rented as priced in the auction model. The DOTS, on the other hand, are fixed for the duration of the contract, which is called "bonded". Unlike staking, DOTS do not earn interest.

Polkadot Governance Roles

There are also parathreads that exist alongside the parachains, so to speak. Blockchains shown here have the option of writing data to the relay chain as required. As with classic transactions in the blockchain, those from Bitcoin is used, transaction costs. These depend on the system load. In addition, there is no guarantee that there will be direct interaction with the next block. Thus, parathreads can mainly be recommended for smaller projects, as there is only a limited amount of activities.

The so-called relay chain model, which is pursued by Polkadot, represents a clear separation of status communication and consensus building Bitcoin The validation and status transfer cannot be distinguished from one another, so there is a completely different approach here. Even in the network of Ethereum, which can be understood as very dynamic, there is no place for this new type of program logic.

Polkadot Lightpaper Relay Chain Explained

If the blockchains created on Polkadot then share the consensus mechanism, communication within the chains will be simplified. Incidentally, in the Polkadot system there is no need for further oracles, which then testify to the state of the blockchain. This means that larger arithmetic operations can also be carried out on Polkadot - and that parallelized.

In this case scripts are to be executed in several parathreads like -chains, which then interlock. The results of the calculations can be communicated via the relay chain. Of course, this path is secured. It is still unclear whether this method offers an advantage over the current possibilities in practice.

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The technology

Polkadot Blockchain Explained

Probably the greatest advantage that the network promises may be the possibility that your own projects based on the blockchain can be implemented quickly and inexpensively. To make it even easier to get started, the Web3 Foundation, the NGO behind Polkadot, offers a simple and modular framework so that you can easily develop your own blockchains.

Polkadot technology explained

The system, which is based on WebAssembly, makes it possible to set up rudimentary blockchain here within a few minutes. The development of real logic functions is relatively easy thanks to programming languages ​​from Rust to C ++. Due to the fact that the systems that are developed here are compatible with Polkadot, they can also be commissioned and tested completely independently if necessary.

 

The staking

Polkadot staking explained

The proof of stake approach is used so that the relay chain can be protected against attacks. The amount of DOTS increases annually by 10 percent - over time, however, the aim is to lower the inflation rate. The majority of the DOTS that have been newly created is distributed to the stakeholders. It should be noted that the stakeholders in the network can assume different roles. So there are the nominators and the validators.  

In order to be able to take on a role, it is necessary that own DOTS are locked in the smart contracts, which can be paid out at the earliest point in time after 28 days. If you slip into the role of the validator, two important tasks must be observed: On the one hand, the content is checked - namely those of the blocks submitted by the parathreads and chains; the correctness must then be checked here. In addition, the validator then has to merge the blocks in the relay chain and coordinate the validity with the other validators. If a validator notices that a block is faulty, i.e. that an error has been made here, the staked DOTS can be withdrawn.

Polkadot Consensus Roles Dots

You save all the effort by jumping into the role of the nominator. However, as a nominator there is only lower interest. Voting is only done via the validators. However, the nominator can also lose his DOTS if a validator is voted for, which then damages the network.

There are also collators or mixers, which also play a role in the network that should not be underestimated. The collators transmit the status of the parachain or parathreads to the validators. There is no payment from the network, but can be rewarded in the form of an internal token.

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The development

Polkadot applications explained

One feature that the developers at Polkadot like to highlight is that it can be upgraded. Because while other blockchain systems require major function updates, Polkadot does not require so-called forking. Here Polkadot has very sophisticated governance mechanisms. The stakeholder, regardless of whether he is active or passive, can choose a council here, which then informs referendums about rule and code changes. It is decided every 28 days whether the referendum will be held or not. Stakeholders have to bind themselves to the vote by means of a smart contract.

It is still unclear whether this system is really better or more effective than the forking of client applications. But it may represent an elegant solution that at least - according to the current status - looks promising.

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Investing and Trading

Polkadot CoinMarketCap Price Chart

Do you plan to speculate with the cryptocurrency or to invest carefully, so you can look around for a marketplace or an exchange. When it comes to speculating on the price, it may be advisable to familiarize yourself with the offer of Libertex to deal with. One Online Broker, which has a very promising offer and convinces with fair fees.

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Our conclusion: the potential is great!

And that is exactly why there are promising prognoses when dealing with polkadot. Therefore we find at Bitcoin-News.onethat it is advisable and advisable to invest in this technology.

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Thomas Cormik

Thomas Cormik started out with the sole focus on educating his readers about Bitcoin and its potential impact on traditional financial systems. Thomas prides itself on bringing quality content to the masses under the Bitcoin-News.one banner.

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