Polkadot is a public decentralized multi-chain network that prioritizes interoperability and scalability while not compromising on security. The network was founded by Gavin Wood, co-creator of Ethereum, and raised USD 145 million in its high-profile ICO in 2017. As one of the biggest projects supported by the Web3 Foundation, it is undoubtedly a project worth one's attention.
Unlike the majority of public blockchain networks, Polkadot introduces great infrastructure improvements. It consists of one main blockchain called the "Relay Chain", and quite a few independent sub-chains called "parachains". The Relay Chain is responsible for security, governance, and data validation. Each parachain is independent and customizable to every developer's needs. Though the parachains operate independently, they benefit from the security and interoperability of the Relay Chain, as there exist many bridges among the parachains and between the Polkadot network and other blockchain networks. At the moment, it is estimated that about 100 parachains are working in Polkadot.
Because of such a multilayered structure, Polkadot can achieve speed, security, and scalability at the same time, and is thus considered among the most scalable public blockchains, even more so than layer-2 solutions.
Polkadot uses the Nominated Proof of Stake (NPoS) consensus algorithm, in which DOT holders can act as one of four stakeholders of the blockchain as follows:
- Nominators: pick validators, and secure the Relay Chain
- Validators: take part in consensus, and validate proofs from collators
- Collators: keep track of transaction records on parachains, and send such records to the Relay Chain
- Fishermen: report unusual behaviors in the network
DOT is the native token of the Polkadot blockchain that can be used for staking and governance. There is no hard cap for DOT. The current DOT amount in circulation is 1.12 billion.
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