March 28, 2024

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 associated withdevelopment of decentralized applications.

What is Polkadot (DOT)?

Polkadot – it is an ecosystem of applications that enables interoperability between blockchains on a completely new level. 

Polkadot is trying to solve one of the most pressing problemschallenges facing the blockchain sector – compatibility. Currently, blockchains function as separate islands of data. Polkadot eliminates this problem by integrating multiple proprietary technologies. Notably, Polkadot can even 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 assembly smart contract chain using Substrate. In December of the same 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.The core of Polkadot's functionality is the relay chain. This protocol is responsible for overall network security, consensus, and internetworking. 
  • Parachains– these are sovereign blockchains with their own tokens. In most cases, these networks are optimized for specific use cases. 
  • Paraflowsfunction similarly to parachains, but operate on a pay-as-you-go model. This model is more economical if a constant network connection is not required for operation.
  • Bridges.Another important feature – bridges. This protocol allows parachains and paraflows to connect and interact with external networks. Bridges enhance network interoperability.

DOT Token

DOT token – this is the network's native tokenPolkadot. It performs several vital roles in the system: it is used to participate in 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 securing the relay circuit. This task requires nominees to select reliable validators and staking points in the ecosystem.
  • Validatorsare responsible for protecting the relay chain. Validators solve this problem by placing dots, checking evidence with matchers, and participating in consensus with other validators in the network.
  • Pickers.The purpose of the props – Maintain segments by collecting segment transactions from users. Once this information is collected, Collators will provide proof for validators.
  • Fishermen.The network also uses some uniquemonitoring protocols known as Fishermen. These nodes monitor the network and report bad behavior to validators. Notably, Collators and any full parachain node can serve as a fisherman in the Polkadot ecosystem.

How to buy Polkadot (DOT)?

Today DOT can be purchased 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 – Polkawallet app. This Android Dapp allows users to store DOT easily and quickly.

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