What is DOT? Polkadot is a protocol that connects blockchains. It provides them with shared security while still allowing them to keep their tokens and governance systems. It is sort of like a Swiss army knife for connecting disparate blockchains. That makes it a foundational infrastructure for the multi-chain world.
DOT is the native token of the Polkadot protocol, and its holders can vote on proposals about how to improve the network and elect validators who create new blocks in the blockchain. They also receive rewards from fees charged by para chains and from transactions inside them. All this means that DOT holders will be able to decide how the network evolves!
Are you wondering how to buy Polkadot? You can buy DOT on many exchanges. You can research them before shortlisting the apt one for you that provides flexibility and assurance for the security of your cryptos.
Background
If you are new to the cryptocurrency space, you should know that Polkadot is a project spearheaded by Gavin Wood, one of the founders of Ethereum. The project is open-source and aims to solve the interoperability problem in blockchain technology.
In other words, it allows smart contracts, dApps (decentralized applications), and even entire blockchains to interact with each other on Polkadot’s network. All blockchains on this platform are equal. It means blockchains do not compete for attention in a zero-sum scenario.
Why should I buy DOT? It is important to note that Polkadot has become incredibly popular among cryptocurrency investors because it was by one of Ethereum’s most successful co-founders. That makes sense when you consider Gavin Wood wrote the original Solidity code for Ethereum’s smart contracts and decentralized applications (dApps).
Purpose
When you break down the technological jargon, Polkadot’s purpose is simple, to connect blockchains. It’s a multi-chain network. Polkadot connects blockchains together.
The end goal of projects like Polkadot isn’t to serve as a general use blockchain but to provide support for other blockchains and make sure everything works smoothly between them so that all types of data can get exchanged with ease.
In addition, it has a design to make it easier for developers to create their specialized blockchains or dApps (decentralized applications). These are ideal for particular use cases, such as finance or gaming, and host these applications on their dedicated chains and networks that run parallel to the main Ethereum network. It runs without worrying about scalability issues or bottlenecks slowing down processing times.
Polkadot Is Popular Among Crypto Investors
If you’ve paid attention to the cryptocurrency space at all in the last few months, you’ve probably heard that DOT is now one of the most popular cryptocurrencies.
It’s currently the 5th largest cryptocurrency by market cap and has a circulating supply of 1.2 billion tokens. DOT is also currently the 9th most traded cryptocurrency on major exchanges and ranks 6th in popularity on social media.
DOT tokens have been available for a few years, but it’s become more widely used recently as new exchanges have started listing them, and more people have started buying them. If a digital currency gets more widely owned, it’s easier to exchange for other things.
Solid Design and Partnerships
With the crypto market at a high right now, it’s easy to get swept up in the excitement and buy coins you are not familiar with. That’s why it’s important to do your research before putting any hard-earned money into an asset.
Polkadot is an open-source protocol used to connect various blockchain networks. It allows data, assets, and transactions to be transferred between different blockchains regardless of their consensus mechanisms or security profiles.
Accordingly, Polkadot’s design for interoperability has made it a very popular protocol among large financial institutions and businesses looking for more efficient ways to move their data and information between blockchains.
It makes Polkadot stand out from other protocols such as Ethereum because these organizations can use Polkadot’s network for creating side chains connected to other blockchains instead of having to build apps on one specific chain like Ethereum.
The Price Will Likely Skyrocket?
You’re probably wondering what you should do next. Well, we hate to say it, but it’s time to invest in DOT. We know everyone is talking about investing in crypto nowadays, but there’s a good reason: investing in crypto is a great idea!
You might be worried about how volatile crypto prices are. Yes, the price of Bitcoin went up 100% recently and then plummeted by half. And yes, Ethereum has been on a rollercoaster in recent times. But Polkadot is different from these other cryptos because its price has increased by more than 100x since its launch!
It means you’re much less likely to lose money than if you invested in Bitcoin or Ethereum. The price of DOT has been rising steadily since the start of 2021, and it’s currently at an all-time high. So you’d better act fast before it gets even higher!
Advantage of Polkadot Over Ethereum
Polkadot has some big advantages over Ethereum, and a lot of people are excited about it.
Ethereum is the most popular smart contract blockchain, but it’s become painfully slow, expensive, and hopelessly stuck in a silo. Polkadot solves this problem by letting different blockchains talk to each other. It makes the technology more powerful, flexible, and secure. And it lets developers create the next generation of decentralized apps (dApps).
These are just some reasons why Polkadot has so much momentum right now. Although it had time for the official launch, it clocked the coveted ranked #3 among all cryptocurrencies with a market cap of $1 billion months ago.
Conclusion
Despite all of the regulations and market headwinds, Polkadot’s price has remained steady and is likely to rise even further shortly.
You know how to buy DOT and the facts circulating around this crypto. If you think the above predictions are correct. And also believe that Polkadot will get more widely adopted by individuals, businesses, and institutions over time. Buying some immediately will be a great idea.
