What is Polkadot (DOT)?

What is Polkadot (DOT)?

What is Polkadot (DOT)? and the difference compares to Kusama?

Polkadot was created in 2020 by Gavin Wood, a former Ethereum creator with an objective similar to Ethereum and Cardano, but relies on Relay Chain, Parachains, and Bridges technologies to accomplish their aim of connecting other blockchain networks together. This is why Polkadot calls its own network the Internet of Blockchain.



Gavin Wood believes that Polkadot technology can continue to improve its security aspect as the more people stake coins, the more the data connections between blockchains there will be.



In the early days of the network, Polkadot used a Proof-of-Authority (PoA) consensus system by having an affiliated organization, Web3 Foundation, as a validator of the data on the network, before switching to the Nominated-Proof-of-Stake (NPoS) mechanism later on.



Moreover, Polkadot has its own consensus system that encourages its network to be more decentralized by changing the selection of validators for Proof-of-Stake, where the chances of being picked depend on the number of coins staked to be selected through a voting system instead.





Interesting Technology on Polkadot



The Nominated-Proof-of-Stake (NPoS) consensus algorithm allows holders of DOT who meet the minimum requirement to join as a validator and nominator to verify data and ultimately enhance the Polkadot network’s security.



NPoS is utilized by the Polkadot blockchain network to accommodate its users with an uplifted sense of decentralization through the algorithm’s voting system that functions as the main factor in selecting validators, opposing to mechanisms that provide the authority to verify transactions to those who staked more coins in the system than others.



The authority to select a validator is different according to the amount of coins staked in the system. Once the transaction is verified, the reward is divided amongst the validators and the nominators calculated from the amount of coins initially staked.



Polkadot attains its own unique technological advancements, such as the Relay Chain, Parachains, Parathreads and the Bridge, which strengthens, merges, and expands the network to support the growing number of users.



Relay Chain is the core of Polkadot when connecting within the network to be more secure according to the number of users. Parachains help to customize the internal blockchain structure for different usages, such as building or using decentralized applications (dApps) or even minting tokens.



Parathreads function similarly to Parachains, but are designed to be a temporary, or one-use, service for business or organizational utility and differentiate from its opposition in terms of how they do not necessarily rely on connecting to the blockchain network. Whereas Bridges allow Polkadot to integrate with other networks like Ethereum or Bitcoin.





The difference between Polkadot and Kusama



Development phases or regulatory factors within the Polkadot network can be considered more timely, when compared to Kusama, but are often integral in maintaining and enhancing the network’s efficiency and stability. Note that the process of voting and, ultimately, approving such developments and the required timeframe can take up to 56 days or almost 2 months.



The Polkadot network is unquestionably designed to be more efficient and stable than Kusama, in terms of security and performance, enabling it to be suitable for the functionalities of Decentralized Applications (dApps) that require high security, such as large enterprise projects that rely on blockchain technology or even for financial purposes.





Conclusion



Polkadot is a blockchain network that aims to implement smart contract functions, with the strengthened ability to connect with other blockchains with multipurpose technological advancements such as Relay Chains, Parachains, Parathreads, and Bridges which undoubtedly enhances users’ intrigue in the platform and its usage.



However, every investment carries risks. Investors should always research information before making an investment.





Reference:

Polkadot, Wiki Pokadot

Crypto

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