As the DeFi market is evolving under the close eye of blockchain enthusiasts and developers, Polkadot (DOT) emerges as one of the new and prominent projects in the sector of decentralized finance. Polkadot investors are excitedly comparing Polakdot to Ethereum (ETH), while DOT is on the rise when it comes to the market price since Binance listed the crypto. What is Polakdot (DOT)? What should investors know about Polkadot technology and market value?
What is Polkadot (DOT)?
Polkadot is a multi-chain blockchain-based ecosystem that enables cross-chain operations and high-level interoperability. Polkadot network enables moving tokens across the blockchain, while also enabling communication between different blockchain environments. The native crypto to the network is DOT, and the project was co-founded by the co-founder of Ethereum, Gavin Wood. After a year since launching Ethereum, Wood wrote a white paper for Polkadot. However, Polkadot wasn’t live until 2020. Polkadot represents a third-generation cryptocurrency as it solves the problem with scalability by using multiple parallel blockchains for transactions across multiple chains. Polkadot also hosts Substrate network which enables users and network participants to create unique blockchain environments.
The Value of Polkadot (DOT)
Aside from the fact that Polkadot resolves the problem of scalability that many blockchain-based networks struggled with, making it 3rd-gen crypto, Polkadot is also using parachains and a more sophisticated architecture to achieve interoperability and scalability. Transactions are faster and network users can take advantage of independent and interconnected chains with top security and faster transaction times. When it comes to the market value of DOT, it seems that investors are lining up to “get a taste” of the new blockchain-based environment that Polkadot represents as the crypto price is on the rise. With the latest change in the market, DOT is trading at the value of 7.31$ after over 12% of gains for the day and over 40% for the week.
Image credits: Cover photo taken from Paradigm on Medium