September 27, 2023

Overview of the features and functionality of the Polkadot network

Overview of the features and functionality of the Polkadot network

Polkadot was created to simplify the most common programming tasks develop decentralized applications.

What is Polkadot (DOT)?

Polkadot is an application ecosystem that provides interaction between blockchains at a whole new level.

Polkadot is trying to solve one of the most pressing problems facing the blockchain sector - compatibility.Currently, blockchains operate as separate data islets. Polkadot eliminatesIt is noteworthy that Polkadot can even integrate many patented technologies.transfer information from private blockchains to public networks and vice versa.

The History of Polkadot (DOT)

The story of Polkadot actually begins with the story of Ethereum.Polkadot was founded by Ethereum co-developer Gavin Wood.Wood was co-founder, CTO and principal developer of Ethereum.He is also well known as the man who invented the solidity smart contract programming language that liesat the heart of Ethereum's functionality.

Wood decided to leave Ethereum to build a more robust programmable blockchain in early 2016.Specifically, he was pondering how to develop a segmented version of Ethereum.By October 2016, he had developed the main aspects and published a white paperblockchain.

ICO Polkadot

Exactly one year later, Polkadot conducted an initialplacement of coins. The event, which took place from 15 to 27 October 2017, became one of the largest ICOs of that time. The company received approximately $ 145 million. However, the event's success was short-lived.

In less than two weeks, one of the mainPolkadot development teams has been hacked. The total loss after the hack was about USD 150 million. This loss of funding slowed down development in the early days of the project.

In 2018, Polkadot got back on its feet,by launching the BBQ Birch testnet. This launch demonstrated the ability to create and deploy a web build smart contract chain using Substrate. In December of that year, Polkadot received a grant from the Web3 Foundation to improve the Web3 ecosystem.

Last year, Polkadot continued on its way. With the completion of PoC-3 and the launch of the Alexander testnet, the company has reached a milestone. In 2020, Polkadot continued its development and became one of the most popular staking platforms.

How does Polkadot work?

The Polkadot system works in a unique waycombining heterogeneous blockchains called parachains and paraflows into a single network. These circuits can be connected to both external networks via bridges and to the Polkadot relay circuit. This design gives Polkadot additional flexibility. The main components of the network are:

  • Relay circuit. At the heart of Polkadot's functionality is a relay chain. This protocol is responsible for overall network security, consensus, and interworking.
  • Parachains Are sovereign blockchains with their own tokens. In most cases, these networks are optimized for specific use cases.
  • Paraflows function similar to parachains, but operate on a pay-as-you-go model. This model is more economical if the operation does not require a constant network connection.
  • Bridges. Another important feature is bridges. This protocol allows parachains and para-threads to connect and communicate with external networks. Bridges extend the interoperability of the network.

DOT Token

The DOT token is Polkadot's own token. It performs several vital roles in the system: it is used to participate in making management decisions, make proposals, vote, and serves as a means of payment.

Polkadot governance model

Polkadot offers a tiered management model. This model allows protocol upgrades without the need for hard forks. The Polkadot community consists of two groups:

  • Board members are selected from among passive stakeholders. They can propose new referendums online and reject incoming proposals.
  • Technical committee. This group consists of teams actively building Polkadot. Their responsibilities include proposing urgent referendums and helping to vote and implement the most important network updates.

GRANDPA consensus algorithm

Polkadot uses a new consensus mechanism known as GRANDPA (GHOST-based Recursive Prefix Extraction Agreement). This mechanism provides Polkadot with a high level of security.

The GRANDPA algorithm is incredibly scalable in softwarecompared to earlier generation cryptocurrencies such as Ethereum. For example, Ethereum can process about 12 transactions per second. GRANDPA provides near instant confirmation times. On average, under normal network conditions, transactions are completed in less than a second. To accomplish this task, GRANDPA introduces several new roles in the consensus system.

  • Nominators. Nominators are tasked with ensuring the protection of the relay circuit. This challenge requires nominees to select reliable validators and staking points in the ecosystem.
  • Validators are responsible for protecting the relay chain. Validators accomplish this task by putting dots, checking evidence with pickers, and engaging in consensus with other validators on the network.
  • Pickers. The purpose of backers is to support segments by collecting segment transactions from users. Once this information has been gathered, Collators will provide evidence for validators.
  • Fishermen. The network also uses some uniquemonitoring protocols known as Fishermen. These nodes monitor the network and report bad behavior to the validators. Notably, Collators and any full parachain node can act as a fisherman in the Polkadot ecosystem.

How to buy Polkadot (DOT)?

Today DOT can be bought on most major exchanges.

How to store Polkadot (DOT)?

There are several ways to securely storePolkadot (DOT). The platform offers users the official Polkadot JS Wallet for free. The wallet is divided into two parts. The "Controller" section can issue orders on the network, while the Stash function is used when storing a large amount of DOT.

There are also several mobile wallets for this cryptocurrency. One of the most popular options is the Polkawallet app. This Android Dapp allows users to store DOT easily and quickly.

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