What is Polkadot?
Expanding knowledge about the world’s leading cryptocurrencies, you should pay special attention to the reviews of the unique Polkadot project. We offer you to get acquainted with the promising blockchain development. The proposed review will closely touch the DOT cryptocurrency, a token that plays an important role within the system. The announced product is a network protocol developed using the best technologies. The solution to the problem of almost any nature is available to the ecosystem code for any blockchain product.
A little history about Polkadot
The emergence of the Polkadot project was ambiguously received by the global crypto community. Even at the development stage, Coinbase began considering a blockchain startup as a listing candidate. The Polkadot platform has managed to become an innovative breakthrough in the development of the decentralized Internet. After launching the blockchain ecosystem in the first half of 2020, Coinbase Custody added DOT staking.
On May 26, 2020, the first main phase of the network was launched, while the platform investors got access to accounts. And now, in mid-January 2021, the DOT cryptocurrency displaced XRP by becoming 4 in terms of market capitalization. Over the past month, Polkadot tokens have grown by 175% in price. Total market capitalization as of 01/22/21. over $15.6 billion, and the price of Polkadot was $16.36.
Polkadot Review
To try to forecast the DOT cryptocurrency for 2021, it is worth delving into the platform architecture for which staking plays a huge role. The official Polkadot network’s official website practically guarantees the product’s unprecedented economic scalability. It is possible to transfer not only tokens, but also arbitrary data. We can say that Polkadot is a multi-component application environment between blockchains. The system of interconnected blockchains includes the main chain of Relay Chain blocks, to which additional parachains are connected.
The network uses Libp2p, which is positioned as the standard for future decentralized applications. The Polkadot project provides for several statuses.
- Validators are required to validate transactions and add new blocks. They provide security for the entire network. They jointly choose a block that will become a representative of the current state of the parachain.
- Nominators – appoint, choose validators, for which they receive a reward.
- Collators – create blocks on parachains attached to a relay chain. They contain the most recent transactions.
- Fishermen – monitor the conscientious work of validators and collators. For the discovery of their dishonest behavior receives an additional reward.
Having reviewed Polkadot with the naked eye, it is clear that inside the ecosystem, as in the Ethereum network, smart contracts and a native token are observed. However, the Polkadot system, unlike traditional cryptocurrencies, can be changed without hard forks. It is not difficult to guess that the process is controlled by the DOT cryptocurrency. Only the future will show how large and extensive the possibilities of using the ecosystem are.
Polkadot staking DOT
Polkadot tokens are controlled by a decentralized network of users, used for governance, staking and communication with the network itself. Each coin holder has the right to vote. The DOT token is used by validators, nominators, fishermen for staking, and is also used to connect parachains with the collator relay chain. It is used as a reward for users of the ecosystem.
Polkadot is a crypto, available on many prestigious exchanges, and Binance can boast of Polkadot’s special liquidity . The coin trades well on Kraken, Huobi, OKEx and many other exchanges. Recently, the DOT cryptocurrency has shown excellent price growth dynamics. It should be borne in mind that staking mining is not provided. However, a further increase in the number of coins is not considered. This means that demand will only increase, and the rate of Polkadot will grow.
DOT cryptocurrency forecast
Reviews about Polkadot as a cryptocurrency are optimistic. We think it’s worth spending a little daily time to track price fluctuations and staking. Below is a graph of up-to-date information as of 01/22/21. received from the largest exchanges and processed by visualization tools.
The charts reflect the real exchange rate of Polkadot against the dollar, below you can see the change in the volume of the crypto asset. In a relatively short period, staking, like the entire system, easily broke into the TOP digital currencies by capitalization, overtaking such monsters as Litecoin and Ripple. The growth in popularity generates offers, and the desire to buy Polkadot cryptocurrency is increasing more and more.
Advantages and disadvantages
DOT cryptocurrency is based on Polkadot’s proprietary blockchain. The token is a new type of cryptocurrency and a promising tool. Innovative blockchain ecosystem products can make a huge difference to the industry. Let’s list the benefits:
- Experienced development team with founders Dr. Gavin Wood, Robert Habermeyer, Peter Chaban.
- Strict adherence to the roadmap by the team.
- Decentralized ecosystem, no hard forks during updates.
- The growth of the capitalization of the coin and a promising forecast for the DOT cryptocurrency.
- Large IT companies are partners of the project.
- Cryptocurrency Polkadot trades well on Binance, Kraken, Huobi, OKEx.
It is still difficult to single out any shortcomings in the Polkadot crypt, or they are simply a minimum.
Although it is impossible to deny the complexity of the project. It is also impossible to foresee possible unforeseen circumstances of the behavior of an ecosystem. Everything will depend on the willingness of the team to overcome the accompanying difficulties. The forecast for the DOT cryptocurrency is optimistic, but it will take a little work to determine the place of storage of staking products. The new system so far provides only 2 options for the Polkadot js plugin and the Polkawallet mobile application from a third-party developer.
Opinions about Polkadot and prospects
The 2021 forecast for the DOT cryptocurrency inspires hope for the opportunity to make good money on global changes in the innovative blockchain ecosystem. The crypto community is optimistic about the future prospects of the token. It is not excluded that the price of Polkadot will rise to $100 against the backdrop of a possible rally of Ethereum to $5000, but this is still the assumption of some users. Time will put its dots on everything. In the meantime, we can say with confidence, based on the reviews of Polkadot, that the project is worthy of attention, and the growth of its popularity is a clear proof of the above advantages.