What Is Polkadot?

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Table of contents

  1. Empty
  2. What Is Polkadot?
  3. How Does Polkadot Work?
  4. How to Invest in Polkadot
  5. Is Polkadot a Good Investment?
  6. How Is Polkadot Different?
  7. Concluding Thoughts

Empty

{"blocks":[{"key":"9c9a0","text":"The crypto world is gradually growing rich with new and improved cryptocurrencies every single day. The first cryptocurrency to make it to the scene was, of course, Bitcoin in 2009. It was then followed by the introduction of Ethereum in July 2015. ","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":249,"style":"color-rgb(0,0,0)"},{"offset":0,"length":249,"style":"bgcolor-transparent"},{"offset":0,"length":249,"style":"fontsize-11pt"},{"offset":0,"length":249,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"c98sv","text":"Not long after, in 2017 to be specific, Polkadot was created. What is Polkadot? How to invest in it? And how is it different from other cryptocurrencies? The goal of this article is to answer all of these questions, so stick around. ","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":233,"style":"color-rgb(0,0,0)"},{"offset":0,"length":233,"style":"bgcolor-transparent"},{"offset":0,"length":233,"style":"fontsize-11pt"},{"offset":0,"length":233,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}}],"entityMap":{}}

What Is Polkadot?

{"blocks":[{"key":"dnb38","text":"Polkadot is one of the many crypto projects that are on the rise. It came to exist in the year 2017 at the hands of Ethereum’s previous co-founder and CTO, Gavin Wood.","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":167,"style":"color-rgb(0,0,0)"},{"offset":0,"length":167,"style":"bgcolor-transparent"},{"offset":0,"length":167,"style":"fontsize-11pt"},{"offset":0,"length":167,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"fltgm","text":"Originally, Polkadot was created in hopes of eliminating the downsides of blockchain technology. The developers opted for a different kind of mechanism to allow this cryptocurrency to function.","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":193,"style":"color-rgb(0,0,0)"},{"offset":0,"length":193,"style":"bgcolor-transparent"},{"offset":0,"length":193,"style":"fontsize-11pt"},{"offset":0,"length":193,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"7uirs","text":"Polkadot’s software toolkit is known as Substrate and was created with the help of Parity Technologies. Implementing this system allowed investors to build custom blocks that are suitable to add to the network’s chain.","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":218,"style":"color-rgb(0,0,0)"},{"offset":0,"length":218,"style":"bgcolor-transparent"},{"offset":0,"length":218,"style":"fontsize-11pt"},{"offset":0,"length":218,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"e1v1e","text":"Substrate technology also allows Polkadot’s blockchains to interact seamlessly with one another. This opens up possibilities of shared security among investors and helps them easily upgrade their chains.","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":203,"style":"color-rgb(0,0,0)"},{"offset":0,"length":203,"style":"bgcolor-transparent"},{"offset":0,"length":203,"style":"fontsize-11pt"},{"offset":0,"length":203,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"7ksol","text":"In turn, Polkadot has gotten rid of the time and effort wasted on setting up operators to create and manage new crypto blocks.","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":126,"style":"color-rgb(0,0,0)"},{"offset":0,"length":126,"style":"bgcolor-transparent"},{"offset":0,"length":126,"style":"fontsize-11pt"},{"offset":0,"length":126,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}}],"entityMap":{}}

How Does Polkadot Work?

{"blocks":[{"key":"f77sc","text":"Polkadot works towards filling the gaps that the current blockchain mechanism isn’t able to fill. In fact, Polkadot’s whole infrastructure is built around this idea.","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":165,"style":"color-rgb(0,0,0)"},{"offset":0,"length":165,"style":"bgcolor-transparent"},{"offset":0,"length":165,"style":"fontsize-11pt"},{"offset":0,"length":165,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"32soa","text":"For starters, blockchain technology has limited scalability. This means that the system isn’t yet made to withstand large demands and certain complex transactions with crypto.","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":175,"style":"color-rgb(0,0,0)"},{"offset":0,"length":175,"style":"bgcolor-transparent"},{"offset":0,"length":175,"style":"fontsize-11pt"},{"offset":0,"length":175,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"e72kn","text":"Not just that; using blockchain means investors will face issues with implementation, integration, and compromised privacy. These issues may lead to the disruption of their business if not handled well. ","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":203,"style":"color-rgb(0,0,0)"},{"offset":0,"length":203,"style":"bgcolor-transparent"},{"offset":0,"length":203,"style":"fontsize-11pt"},{"offset":0,"length":203,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"2q2uc","text":"Among the benefits of blockchain systems, though, is the fact that they’re decentralized, fast, and seamless secure. Yet, blockchain technology can’t implement all three features at once.","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":187,"style":"color-rgb(0,0,0)"},{"offset":0,"length":187,"style":"bgcolor-transparent"},{"offset":0,"length":187,"style":"fontsize-11pt"},{"offset":0,"length":187,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"69pvl","text":"This is why Polkadot is taking the crypto world by storm. Its architecture was created to try and sustain all the advantages of blockchain without keeping any of the shortcomings. ","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":180,"style":"color-rgb(0,0,0)"},{"offset":0,"length":180,"style":"bgcolor-transparent"},{"offset":0,"length":180,"style":"fontsize-11pt"},{"offset":0,"length":180,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"3j9c8","text":"In addition, Polkadot’s interoperability allows different systems to interact and share information with each other—a feature no other technology has yet.","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":154,"style":"color-rgb(0,0,0)"},{"offset":0,"length":154,"style":"bgcolor-transparent"},{"offset":0,"length":154,"style":"fontsize-11pt"},{"offset":0,"length":154,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"3mrpo","text":"As a result, the workings behind Polkadot’s mechanism of function are considered innovative by cryptographers and computer scientists. ","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":135,"style":"color-rgb(0,0,0)"},{"offset":0,"length":135,"style":"bgcolor-transparent"},{"offset":0,"length":135,"style":"fontsize-11pt"},{"offset":0,"length":135,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}}],"entityMap":{}}

How to Invest in Polkadot

{"blocks":[{"key":"bainp","text":"With their upstanding technology, the creators of Polkadot have offered the public a cryptocurrency that uses the Polkadot mechanism and that’s known as the DOT token.","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":167,"style":"color-rgb(0,0,0)"},{"offset":0,"length":167,"style":"bgcolor-transparent"},{"offset":0,"length":167,"style":"fontsize-11pt"},{"offset":0,"length":167,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"2kif2","text":"Even though the DOT crypto was only introduced in May 2020, it has gained popularity with investors due to its flexible and upgradable infrastructure. ","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":151,"style":"color-rgb(0,0,0)"},{"offset":0,"length":151,"style":"bgcolor-transparent"},{"offset":0,"length":151,"style":"fontsize-11pt"},{"offset":0,"length":151,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"887dr","text":"In under a year, DOT has become the fourth biggest cryptocurrency. It’s also being used to develop over 340 projects. ","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":118,"style":"color-rgb(0,0,0)"},{"offset":0,"length":118,"style":"bgcolor-transparent"},{"offset":0,"length":118,"style":"fontsize-11pt"},{"offset":0,"length":118,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"3klp5","text":"That said, the process behind investing in DOT tokens is similar to putting money in any other altcoin. Several crypto exchange platforms, such as Kraken and Binance offer investors the choice to trade, buy, and sell DOT tokens.","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":228,"style":"color-rgb(0,0,0)"},{"offset":0,"length":228,"style":"bgcolor-transparent"},{"offset":0,"length":228,"style":"fontsize-11pt"},{"offset":0,"length":228,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"18un1","text":"Investing in DOT ","type":"header-three","depth":0,"inlineStyleRanges":[{"offset":0,"length":17,"style":"color-rgb(67,67,67)"},{"offset":0,"length":17,"style":"bgcolor-transparent"},{"offset":0,"length":17,"style":"fontsize-14pt"},{"offset":0,"length":17,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"c31gv","text":"To make money off of DOT tokens, investors need to choose a trusted application to exchange their dollars for crypto.","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":117,"style":"color-rgb(0,0,0)"},{"offset":0,"length":117,"style":"bgcolor-transparent"},{"offset":0,"length":117,"style":"fontsize-11pt"},{"offset":0,"length":117,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"bc6ba","text":"Once the choice is made, they’ll need to input some personal info along with their credit or debit card information. ","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":117,"style":"color-rgb(0,0,0)"},{"offset":0,"length":117,"style":"bgcolor-transparent"},{"offset":0,"length":117,"style":"fontsize-11pt"},{"offset":0,"length":117,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"eg7df","text":"Then, they’d select DOT coins from the list of cryptocurrencies available on the open market and purchase however many tokens they’d like.","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":138,"style":"color-rgb(0,0,0)"},{"offset":0,"length":138,"style":"bgcolor-transparent"},{"offset":0,"length":138,"style":"fontsize-11pt"},{"offset":0,"length":138,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"7j6tg","text":"Keep in mind that the value of DOT is currently quite high. One dollar is equivalent to 0.064 DOT coins, meaning, if an investor is thinking of putting money into DOT, they should be ready to part with a considerable amount of dollar bills.","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":240,"style":"color-rgb(0,0,0)"},{"offset":0,"length":240,"style":"bgcolor-transparent"},{"offset":0,"length":240,"style":"fontsize-11pt"},{"offset":0,"length":240,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}}],"entityMap":{}}

Is Polkadot a Good Investment?

{"blocks":[{"key":"4g6hh","text":"Keeping in mind how fairly new Polkadot is to the scene, some investors might be second-guessing putting money into it. Considering, though, that the crypto world is an unstable business, investing in Polkadot shouldn’t be any different.","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":237,"style":"color-rgb(0,0,0)"},{"offset":0,"length":237,"style":"bgcolor-transparent"},{"offset":0,"length":237,"style":"fontsize-11pt"},{"offset":0,"length":237,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"frevk","text":"So, is Polkadot a good investment? The value of the DOT coin is continuously on the rise with more and more crypto owners taking an interest in it. ","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":148,"style":"color-rgb(0,0,0)"},{"offset":0,"length":148,"style":"bgcolor-transparent"},{"offset":0,"length":148,"style":"fontsize-11pt"},{"offset":0,"length":148,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"bdpua","text":"Plus, no other cryptocurrency offers the concept of parachains. With Polkadot, the infrastructure works with parallelized chains that help investors gain access to the main network’s Proof of Stake (PoS) transactions.","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":217,"style":"color-rgb(0,0,0)"},{"offset":0,"length":217,"style":"bgcolor-transparent"},{"offset":0,"length":217,"style":"fontsize-11pt"},{"offset":0,"length":217,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"2fgn8","text":"How do DOT owners benefit from parachains? Well, these chains check transaction addresses, standardize all data passing through the blockchain, and secure the crypto pool for a maximized level of security.","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":205,"style":"color-rgb(0,0,0)"},{"offset":0,"length":205,"style":"bgcolor-transparent"},{"offset":0,"length":205,"style":"fontsize-11pt"},{"offset":0,"length":205,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}}],"entityMap":{}}

How Is Polkadot Different?

{"blocks":[{"key":"3nout","text":"Its fiercest competitors are Bitcoin and Ethereum, but how different is Polkadot from either one? And is Polkadot better than both of them? ","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":140,"style":"color-rgb(0,0,0)"},{"offset":0,"length":140,"style":"bgcolor-transparent"},{"offset":0,"length":140,"style":"fontsize-11pt"},{"offset":0,"length":140,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"7mf7h","text":"People thinking of investing in Polkadot and its cryptocurrency, the DOT, should know the answer to these questions. ","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":117,"style":"color-rgb(0,0,0)"},{"offset":0,"length":117,"style":"bgcolor-transparent"},{"offset":0,"length":117,"style":"fontsize-11pt"},{"offset":0,"length":117,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"9qrae","text":"Is Polkadot Better than Ethereum?","type":"header-three","depth":0,"inlineStyleRanges":[{"offset":0,"length":33,"style":"color-rgb(67,67,67)"},{"offset":0,"length":33,"style":"bgcolor-transparent"},{"offset":0,"length":33,"style":"fontsize-14pt"},{"offset":0,"length":33,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"c1s8l","text":"The main difference between Polkadot and Ethereum is the consensus mechanism each crypto has. On one hand, Polkadot uses proof of stake, while Ethereum works with proof of work.","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":177,"style":"color-rgb(0,0,0)"},{"offset":0,"length":177,"style":"bgcolor-transparent"},{"offset":0,"length":177,"style":"fontsize-11pt"},{"offset":0,"length":177,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"aogjb","text":"In other words, Ethereum consumes a lot of energy and effort, unlike Polkadot. Not just that, but as mentioned before, Polkadot is a multichain network. Ethereum, on the other hand, is a single blockchain cryptocurrency.","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":220,"style":"color-rgb(0,0,0)"},{"offset":0,"length":220,"style":"bgcolor-transparent"},{"offset":0,"length":220,"style":"fontsize-11pt"},{"offset":0,"length":220,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"btdnp","text":"Is Polkadot Better than Bitcoin?","type":"header-three","depth":0,"inlineStyleRanges":[{"offset":0,"length":32,"style":"color-rgb(67,67,67)"},{"offset":0,"length":32,"style":"bgcolor-transparent"},{"offset":0,"length":32,"style":"fontsize-14pt"},{"offset":0,"length":32,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"6jf9k","text":"Similarly, Bitcoin also uses proof of work as its mechanism of consensus. This renders Polkadot and its proof of stake system better for beginner investors.","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":156,"style":"color-rgb(0,0,0)"},{"offset":0,"length":156,"style":"bgcolor-transparent"},{"offset":0,"length":156,"style":"fontsize-11pt"},{"offset":0,"length":156,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"706fd","text":"Factor in too, that the value of Bitcoin may be higher than Polkadot now, but its transaction fees are considerably large when compared to that of Polkadot’s. \n","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":159,"style":"color-rgb(0,0,0)"},{"offset":0,"length":159,"style":"bgcolor-transparent"},{"offset":0,"length":159,"style":"fontsize-11pt"},{"offset":0,"length":159,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}}],"entityMap":{}}

Concluding Thoughts

{"blocks":[{"key":"cmosh","text":"What is Polkadot? Polkadot is a heterogeneous multichain network that uses similar methods to function as other crypto technologies. ","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":133,"style":"color-rgb(0,0,0)"},{"offset":0,"length":133,"style":"bgcolor-transparent"},{"offset":0,"length":133,"style":"fontsize-11pt"},{"offset":0,"length":133,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"eaj4b","text":"Previous creators of Ethereum are the minds behind Polkadot. They made Polkadot make use of parachains, which is a form of blockchain mechanism that makes Polkadot unique.","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":171,"style":"color-rgb(0,0,0)"},{"offset":0,"length":171,"style":"bgcolor-transparent"},{"offset":0,"length":171,"style":"fontsize-11pt"},{"offset":0,"length":171,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}},{"key":"drj1r","text":"Nonetheless, Polkadot has both its limitations and benefits when compared to fellow cryptos. It’s recommended that altcoin owners invest in Polkadot as it seems that this crypto is on the rise to become a prevalent coin.","type":"unstyled","depth":0,"inlineStyleRanges":[{"offset":0,"length":220,"style":"color-rgb(0,0,0)"},{"offset":0,"length":220,"style":"bgcolor-transparent"},{"offset":0,"length":220,"style":"fontsize-11pt"},{"offset":0,"length":220,"style":"fontfamily-Arial"}],"entityRanges":[],"data":{}}],"entityMap":{}}