Polkadot (DOT) is a shared multichain network, where specialized blockchains are able to work together seamlessly on a single network. Polkadot has a multitude of chains, also known as “parachains”, which can all process transactions and run on the network in parallel. Polkadot also operates “relay chains”, and these are essentially main networks for permanent transactions.
Polkadot’s parallel processing power boosts the adoption and scalability of blockchains. The multichain network helps support a wide variety of use cases, allowing blockchains to build on the Substrate development framework.
To make upgrading features easier, Polkadot supports forkless upgrades that enhances a blockchain’s runtime. This means that it is easier to make changes when better technology gets developed, as blockchains won’t have to initiate “hard forks”, which is the system that most chains currently use.
Very importantly, ‘bridges’ on the POladot network allow users to interact with other blockchains (namely Ethereum, Bitcoin and more). This would further increase Polkadot’s viability as both a valuable digital asset and an alternative for central crypto exchange.
The Polkadot ecosystem is only continuing to expand today. For example, MathChain, a portable smart wallet for Polkadot, focuses on how crypto wallets need to be optimized to fulfil the needs of blockchain applications.
Polkadot is also actively encouraging more community projects, with the company offering up some funding. Polkadot itself is considered one of the most successfully funded blockchain projects in history, having raised multiple investments totalling $200 million.
Polkadot can process over 1,000 transactions per second according to Founder Gavin Wood. This is all thanks to how the relay chain is constructed, which separates new and validating transactions from one another. The relay chain also utilized a modified proof-of-stake (PoS) system with the help of:
Validators: Contribute to changes for the network and validata parachain blocks.
Nominators: Vote and select trustworthy validators for the relay chain.
Collectors: Run nodes for parachains and transaction data into blocks.
Fishermen: Monitor and report any malicious activity on the network.
Polkadot (DOT) is definitely establishing itself as a major competitor in the crypto scene, as it is currently the 10th highest-ranked crypto asset on Crypto.com’s price list.