Polkadot (DOT) connects a network of purpose-built blockchains via the next-generation blockchain protocol called Polkadot, which enables them to work in unison at scale. Through a range of apps and service providers, Polkadot lays the path for new decentralized marketplaces to appear and give fairer methods to access services. In comparison to current and historical networks, Polkadot’s design has a number of distinguishing advantages, including heterogeneous sharding, scalability, upgradeability, transparent governance, and cross-chain composability.
Shards may communicate, trade value, and share functionality thanks to Polkadot’s cross-chain composability and message passing, which pave the way for a new wave of innovation. Additionally, prominent decentralised financial protocols and cryptoassets on third-party networks like Ethereum will be able to communicate with Polkadot shards. A network of parachains, or heterogeneous blockchain shards, is connected by Polkadot. The Polkadot Relay Chain secures and connects to these chains. Bridges can also be used to connect them to other networks.
Tokenomics
The total supply of Polkadot (DOT) token is at 1,270,813,091. The DOT token has a maximum supply of 1.28 billion and issues inflationary token rewards to incentivize a target supply of the amount of DOT staked. The DOT token serves three distinct purposes: governance over the network, staking and bonding.
DOT is available for Staking, and you can earn up to 18.9% APY on following exchanges.
Benefits of Polkadot (DOT)
Heterogenous sharding
As a sharded blockchain, Polkadot joins multiple chains into a single network so they can conduct transactions. Data sharing between chains and parallel transactions with security assurances. Each chain in the network can be optimised for a particular use case thanks to Polkadot’s distinctive heterogeneous sharding strategy rather than being compelled to fit into a predefined mould.
Forkless Upgradation
Blockchains can update themselves without needing to fork the chain thanks to forkless updates. The transparent on-chain governance architecture of Polkadot is used to implement these forkless upgrades. With the aid of this function, Polkadot makes it possible for projects to remain flexible and advance at the rate of technology. Additionally, it considerably lowers the risk connected with tense hard forks.
Recent Developments
In November 2021, Polkadot has partnered with Chainlink (LINK) to use its Oracle network. Oracle networks provide a way for real-world data to interact with the blockchain.
Additionally, Polkadot recently launched on Ankr (ANKR) StakeFi. This project enables DOT holders to stake their crypto and earn rewards through the ANKR parachain.
Polkadot (DOT) Price Predictions
As of the time of writing Polkadot (DOT) was trading at around $4.87. The coin is already 93.0% down from its all-time high of $55.0. With growing adoption of cryptocurrencies and rise in the development of sharding network and high staking rewards are expected to attract more investor, boosting the DOT token price. Thus, DOT is forecasted to surpass its all-time high in the near future.