Polkadot is a protocol which links different blockchains – permitting data and value to be transmitted across otherwise incompatible networks. Two such networks are Ethereum and Bitcoin.
It also has been designed to be scalable and fast. This DOT token also is utilized for token and governance. Buy and sell transactions are going on with Polkadot in Coinbase and other exchanges as you read this content.
When the data and value are transferred across blockchains, the Polkadot multichain application gives way to interoperability between various cryptos. Simply put, it allows different cryptocurrencies to communicate to one another.
An advantage of Polkadot is its capability to upgrade automatically, which eliminates the need for forking the blockchain. When blockchains fork, it splits the chain into 2 different networks, which could create problems.
That’s why it is easy to set up a blockchain on Polkadot if a network is trying to grow its user base because of its automatic upgrading feature.
It is also possible for communities to customize their self governance as based on their own needs. The possibilities make Polkadot a promising, exciting and unique platform.
Is Polkadot a good crypto investment?
Most expert observers agree that Polkadot is a safe long term investment. The people behind it are very knowledgeable in this fledgling industry and have shown great potential in solving the recurring problem of interoperability.
Polkadot was made by Gavin Wood who is also the co-founder of the Web3 Foundation and the crypto Ethereum. He has envisioned it to support Web 3.0 development. He wants Polkadot to be special through the ability to process several transactions on many parallel chains. This will improve scalability.
Polkadot’s whitepaper was published in November 2016, and its token named DOT, was launched in 2017.
Polkadot’s Genesis block was launched on May 26, 2020. This makes Polkadot still a young and up and coming platform.