Polkadot blockchain and altcoin explained
Polkadot (DOT) is the native cryptocurrency of the Polkadot Network, a blockchain network best described as the blockchain of blockchains. It is one of a few blockchains working to solve many of blockchain’s limitations, which include scalability and security.
The Polkadot network
Launched in 2020, the Polkadot Network is a blockchain network designed to offer several services in the crypto space. Firstly, it is designed to allow unrelated blockchains to communicate with each other.
Secondly, it features a tool called Substrate that simplifies the blockchain creation process. It makes it easy for developers to create blockchains. The network also hosts blockchains, handling their security and transactions, and bridges blockchains on it with other networks such as Ethereum and Bitcoin.
The Polkadot Network is a creation of Dr. Gavin Wood, Ethereum co-founder, responsible for developing Ethereum’s smart contract programming language Solidity. Parity Technologies is the firm behind the development of Polkadot Network.
Polkadot (DOT) is the altcoin or token that powers the Polkadot Network. It has several use cases. It can be used to pay for network fees, governance, and interoperability. Holders of the token can vote on network upgrades.
The DOT token can be bought on various crypto exchanges including Binance, KuCoin, Coinbase, and Huobi Global. Operating on a Proof-of-Stake blockchain network it can also be earned through crypto staking. There are currently 1,103,116,504 DOT coins in public circulation.
As per Coinmarketcap, DOT tokens are currently the 10th largest cryptocurrencies in the world, with a live market cap of $8,917,146,890. Each DOT coin is worth $8.08.
DOT tokens can be stored in several crypto wallets, including Parity Signer, Fearless Wallet, Polkawallet, and SubWallet. The tokens can also be stored in hardware wallets like Ledger.
While the history of the Polkadot Network began in October 2016 with the publishing of its white paper, DOT tokens' history begins in October 2017 with its first ICO (Initial Coin Offering). At the time of the ICO, each Polkadot price UK was $0.29. 2.24 million DOT tokens were offered to the public.
In July 2020 the second DOT token ICO was held. The Polkadot price UK was $1.25. 342,080 Polkadot coins were sold at the time. By the end of 2020, each Polkadot price had appreciated to $9.29.
The tokens would begin 2021 trading at $9.29 and end the year each worth $26.72. While they started well in 2022, they haven't had the best performance in the crypto market. It is no wonder they are currently trading below $10.
Regardless of their current performance, a few crypto prediction platforms forecast good things for DOT tokens. Changelly predicts each Polkadot price might reach $12.34 by the end of 2022. CryptoNewsZ predicts the digital coins might be trading at $27 by the end of 2022.
The Polkadot (DOT) coin might be a fairly new cryptocurrency when compared to other crypto coins, but it has quickly proven to be a great investment opportunity for many investors. The coin might be experiencing a bear run, but so are other cryptocurrencies.
Supported by a great crypto project that looks to decentralize the internet, many investors agree DOT tokens have a bright future ahead.
Author: Jay Jackson
Jay Jackson is a crypto trader, researcher and freelance writer. He works closely with people and businesses in the crypto sphere, writing blog posts, guides, press releases, reviews and ebooks.