The live price of Polkadot is - per (DOT / USD) with a current market cap of $7.45B USD. 24-hour trading volume is - USD. DOT to USD price is updated in real-time. Polkadot is -% in the last 24 hours with a circulating supply of 1.58B.
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Polkadot is a blockchain that allows developers to create custom interoperable parachains on top. The project was launched in 2006 by Gavin Wood, former CTO and co-founder of Ethereum. Each parachain is connected to the main relay chain, allowing them to communicate and share the security of the mainnet. Parachains can have their own modified proof-of-stake consensus mechanism, decentralized application development, and tokens. Parachain space is limited and is auctioned off regularly for DOTs.
Polkadot's native token is DOT, which has three main use cases:
1. Holders can vote on future project changes through Polkadot's governance mechanism.
2. Users can pay network transaction fees on the relay chain and some parachains.
3. Tokens need to be staked to validate transactions. DOT has an unlimited supply, which makes it an inflationary token, and the network pays rewards equally to validators regardless of the staking status.
Polkadot’s creators argue that their token is not designed for speculation, but for the use cases listed above.
Polkadot has been a huge success in sharing data and information between all its different parachains, projects, and DApps. Interoperability has been a big problem for blockchains since Bitcoin, and Polkadot is one of the first projects to offer a solution. Polkadot is also scalable because it can process transactions in parallel across all the different chains in the network.
DOT is an inflationary token, meaning it has no hard cap or maximum supply limit. It has an inflation rate of about 10%, minting new tokens to incentivize validators. People can transfer DOTs in fractions, with the smallest unit being 0.0000000001 DOT, called a Planck.
Although DOT has no fixed maximum supply, only 10 million DOT tokens were created during the initial coin offering (ICO) held in October 2017. These tokens were distributed in the following way:
- 50% to ICO buyers
- 30% to the Web3 Foundation for Polkadot development and other foundation activities
- 11.6% was retained by the Web3 Foundation for future fundraising activities
- 5% was used for a private sale held in 2019.
- 3.4% was used for another token sale held in 2020.
The Web3 Foundation conducted two rounds of private sales in June 2019 and July 2020, for 500,000 DOT and 340,000 DOT tokens respectively. In addition, on August 21, 2020, DOT was redenominated after a network-wide referendum. As a result, the DOT balances of all existing holders were automatically increased by 100 times.
After the redenomination, the original supply of 10 million DOTs became 1 billion. The market value of each DOT token dropped 100 times. This event is often referred to as "Naming Day".
It is important to note that while the initial supply of DOT swelled to 1 billion after the redenomination, the total supply of DOT is uncapped. In other words, Polkadot has an unlimited supply of DOT tokens. According to Polkastats, as of October 2022, more than 1.248 billion DOT tokens have been issued. DOT follows an inflationary model, with the token supply growing by 10% each year.
Polkadot is essentially a blockchain and ecosystem with its own native token, DOT. The Polkadot ecosystem consists of multiple blockchains surrounding the Polkadot mainnet blockchain, which it calls Relay Chain. While working in parallel with the Relay Chain, the surrounding blockchains in the Polkadot ecosystem are called "parachains."
Parachains act as parallel, interoperable blockchains (although they are not necessarily blockchains) that utilize Polkadot's Relay Chain to complete and confirm blockchain activities. Other independent, isolated blockchains can also interact with the Polkadot ecosystem through bridges. A certain number of "slots" are placed for parachains that collaborate with the Relay Chain. If an entity wants to create a parachain and occupy a slot, it must win an auction and then lease that slot. There are also "Parathreads," which are essentially a bunch of parachains pooled into a single slot.
Parachains in the Polkadot ecosystem help with scaling. Instead of trying to fit all use cases and solutions into one blockchain, Polkadot's parachains act as independent systems that can be customized for specific purposes. The activity on these parachains is then collected and organized into blocks by collators and sent to the main hub of the ecosystem — the Relay Chain. Validators on the Relay Chain then vote on whether to validate these blocks.
In the Polkadot ecosystem, validators are responsible for publishing each new block on the Relay Chain, which is the main lifeline of the ecosystem and provides security for the parachains linked around it. Nominators choose who can participate as validators on the Relay Chain by staking their DOTs with validators of their choice, which is essentially a vote. These participants are usually compensated accordingly based on their work.
Due to its technical composition, the Polkadot ecosystem does not need to fork when Polkadot is upgraded.
Polkadot is the flagship project of the Web3 Foundation, which was founded in 2017 by Gavin Wood, Peter Czaban, and Robert Habermeier. Web3 Foundation is a non-profit foundation based in Switzerland that supports the research, development and fundraising efforts of Polkadot.
Gavin Wood is a well-known figure in the world of cryptocurrency and blockchain and one of the pioneers of blockchain technology. He is the co-founder and former CTO of Ethereum and the founder of Parity Technologies. In addition, Wood coined the term Web 3 back in 2014.
Wood also invented Whisper (a P2P communication protocol), Proof-of-Authority consensus, and the Solidity programming language. He currently oversees innovative projects for Polkadot and Substrate.
Czaban holds a Master’s degree in Engineering from the University of Oxford and co-founded the Web3 Foundation and Polkadot with Wood. As the Technical Director of the Web3 Foundation, Czaban supports the creation of the next generation of distributed technologies.
Habermeier is a Thiel Fellow with extensive research and development experience in cryptography, distributed systems, and blockchain technology. A long-time member of the Rust community, Habermeier is also known for developing high-performance and parallel solutions using Rust.
Polkadot is a heterogeneous blockchain protocol that uses sharding technology to enable seamless transfer of data or cryptocurrency assets between blockchains. Polkadot aims to build a scalable, interoperable and secure system that allows adjacent blockchain protocols to be built independently or semi-dependently on its platform while leveraging its security. It can also connect private and public networks to its Relay Chain, which will become parachains or parathreads. The connection of networks is made through bridges, allowing projects built on the Polkadot ecosystem to connect and communicate with other blockchain ecosystems.
DOT has four main uses. It gives token holders governance rights, allowing you to use it to pay network fees; it can be staked to help generate network consensus, and you can bond it to add new parachains in the process.
The Polkadot protocol was created by Dr. Gavin Wood, one of the original eight co-founders of the Ethereum network. Dr. Gavin Wood is a British computer scientist who developed the famous programming language Solidity, which developers use to build the Ethereum network. In 2016, Dr. Gavin Wood also created the cryptocurrency with two other co-founders of Polkadot, Peter Czaban and Robert Habermeier. However, Dr. Gavin Wood still leads the Polkadot project. In 2015, he also founded Parity Technologies in collaboration with well-known developer Jutta Steiner. The company helps people create teams on the Polkadot network and contribute to the development of Polkadot.
Polkadot's initial supply was 10 million. However, after the redenomination, the token balance increased 100 times, making the initial supply 1 billion. However, Polkadot's supply is uncapped as it is an inflationary cryptocurrency. As of September 2022, there are more than 1.2 billion DOT tokens in circulation.
The Polkadot protocol runs through the relay chain, which is the center of all activities in its ecosystem. All protocols such as parachains or parathreads connect to Polkadot and interoperable networks to send and receive different data sets. Polkadot tokens are used to verify transactions and participate in governance. Polkadot token holders can also decide the future of the network.
What makes Polkadot unique is that it can interoperate with a wide variety of blockchains, trying to solve the impossible triangle of blockchains. Its flexibility and robustness have won it attention. Polkadot also uses the Nominated Proof of Stake (NPoS) consensus algorithm, which ensures that it can replace the Ethereum network with faster speed, more environmentally friendly characteristics and lower costs.
The price of DOT peaked at $55.09 on November 4, 2021. At the time, the company's market capitalization reached $53.21 billion.
There are many factors that affect the price of Polkadot, including market sentiment, technological development, user adoption, and macroeconomic events.
You can also trade DOT with other cryptocurrencies on the Binance exchange.
The Polkadot to other currencies exchange rate?
