Polkadot (DOT) has become popular since the rise of its price in February, making as much as 353% profit. The cryptocurrency is geared toward the decentralization of the web by linking together all other digital currencies and giving them an avenue for interaction. But, will this make Polkadot a better place to invest money in?
Origin of Polkadot
Established in 2017 by Ethereum’s co-founder, Gavin Wood, Polkadot was created by the Web 3 Foundation which is based in Switzerland. It aims to connect a number of blockchains into a unified system. For example, It operates with a Relay Chain and a battery of “parachains”, of which the Relay Chain serves as the main hub of the system and runs the network’s shared security and cross-chain operations.
As a sharded network of multiple blockchains, the protocol can process a number of transactions on many chains. Therefore, it prevents congestion that may happen on legacy networks. The protocol also allows communication with other blockchains within the Polkadot ecosystem. With the protocol, it is easier to upgrade which allows blockchain markets to advance with better technology easily.
DOT builds a safe, self-governing, and trusted upgradeable network where all the rest of the blockchain market can bond and benefit from each other.
The Polkadot coin is the token of the Polkadot ecosystem. The first token was sold on October 27, 2017, and its value soared when it received a vote from Binance. Its Relay Chain was first launched in May 2020. To date, Polkadot has become the 6th largest digital currency in terms of market capitalization, ranking ahead of XRP. Its price was initially between $3 and $5 and at the end of 2020, it rose to the $5 – $8 level. The crypto price had its peak in February at a rate of $42.25. Since then, Polkadot is trading between $30 and $37.