Polkadot (DOT) has successfully become one of the best altcoins in 2021. As is known, 2021 is also the best year for crypto assets.

It is also essential to understand that regarding programmable blockchains, DOT is the most popular digital asset among crypto hedge funds.

Therefore, DOT is also experiencing an increase that can increase adoption in 2022. DOT is also predicted to be a competitor to Ethereum (ETH).

Curious about the best altcoins on this one? Here is the full review.

What Is Polkadot (DOT)

Polkadot (DOT) is a blockchain-based crypto asset that allows multiple networks to be interconnected. DOT is also able to process up to 1,000 transactions per second due to the “main chain,” “para chain,” and “bridges.”

This best altcoin project was started by the co-founder of Ethereum and the founder of Solidity—the smart contract programming language on the Ethereum blockchain—Dr. Gavin Woods.

The creation of DOT started with Gavin Wood’s frustration over the slow development of Ethereum 2.0. Wood then left Ethereum and founded the Web3 Foundation with Robert Habermeier and Peter Czaban.

Subsequently, DOT was founded by the Web3 Foundation. At the end of 2017, the Web3 Foundation conducted an ICO based on the Polkadot White Paper. Then, the Web3 Foundation started working with the proceeds from the ICO.

In mid-2019, the Web3 Foundation officially launched the latest DOT testnet called Kusama, and in May 2020, the first block of the DOT blockchain, the genesis block, was finally found.

The DOT network has a second early-stage version called Kusama, which is an initial release of the DOT protocol aimed at programmers who want to experiment with technology.

In this way, the programmer can see what is possible just as the DOT network learns what could be improved in the primary protocol. Kusama also has his token called KSM.

This token cooperates with DOT so that users can terminate KSM, choose it, or use it as a means of payment on the network.

How Polkadots Work

How Polkadot works uses an open-source multichain sharding protocol that allows the transfer of data or asset types across chains, not just tokens. Thus, various kinds of blockchain technologies can interoperated with each other.

The main difference of this altcoin from other cryptocurrencies, in particular, is based on its unique sharding mechanism, which allows disparate blockchains or cross chains to work together seamlessly—called interoperability.

The decentralized interoperability between the various blockchains contributes to shaping the DOT vision. The main distinguishing feature of DOT lies in cross-chain interoperability. With it, DOT can produce a wholly decentralized and private network controlled by users.

Through this network, DOT wants to make it easier to create new applications and services. It is known that network protocols do this by connecting public and private blockchains, oracles, and future technologies—these independent blockchains are called “para chains,” which allow them to reliably share information and transactions at the core of the DOT (relay chain) blockchain.

It also makes it possible to build applications with approved data from private blockchains and use them on public blockchains. For example, school-approved private academic data could later send admission cards to smart credential checking contracts on the public blockchain.

Polkadot Technology Structure

What is the technology structure used by Polkadot?

DOT is considered a solution for the scalability of blockchains like Ethereum (whose transaction throughput is severely limited by the need for each node to validate each transaction).

DOT is known to use sharding, a technique that does not require all nodes to verify every transaction. Later, the transaction is divided into network sections—referred to as fractions.

Those fractions are called para chains in DOT. DOT approaches this scalability issue through its unique blockchain architecture. On the other hand, the most essential and core part of the DOT architecture, namely the Relay Chain.

In this case, all blockchains or different shards on the DOT network will be connected to each other via this Relay Chain. The Relay Chain will provide mutual consensus alias agreement between various blockchains—called para chains—and cross-chain interoperability.

Relay Chain will ensure transactions from all chains in the network can be processed simultaneously and securely. It also provides increased network scalability.

Meanwhile, other specialized work is delegated to the chains, which have different implementations and functions. Parachain is an individual blockchain that can own its token and optimize its functionality for a specific use.

These parachains are connected via Relay Chain, so it is important that the parachain can be optimized for a particular application.

How to Buy Polka dots

How to buy Polkadot Coin (DOT)?

Like other crypto assets, DOT is traded on crypto exchanges, including Indodax.

To buy Polkadot (DOT) on Indodax, you can listen to the following tutorial:

• Please click this link for those who are not yet a member.
• Then, make a deposit.
• If you have deposited and want your balance, you can return to the market.
• Next, look for Polkadot (DOT) in the Rupiah market and click it.
• If you have entered, you must buy by filling in the balance and at what price you want to buy Polkadot (DOT). You can also buy it instantly or directly at the current price.
• Then, you need to wait for the price to increase for some time patiently.
• After the price increases, you can sell it at a higher price with the instant method.
• You can place an order after buying if you sell with the limit method. Make sure that you have entered a higher number when selling.

This is an explanation of what Polkadot (DOT) is, an altcoin that is currently popular. Also, check out other recent reviews and articles about the world of digital asset investment only at Indodax Academy.