- Polkadot is a layer-0 protocol that was launched by Gavin Wood, one of the founders of the Ethereum blockchain.
- It is designed to connect unrelated blockchains so that the assets can be transferred efficiently and securely.
- $DOT is the native token of Polkadot, which means that it is used to pay for transaction fees and other services on the network.
Have you ever heard of a network that is known to be the “blockchain of the blockchains”?
Polkadot is a layer-0 protocol that was launched by Gavin Wood, one of the founders of the Ethereum blockchain. It is designed to connect unrelated blockchains, for instance, Ethereum and Bitcoin, so that the assets can be transferred efficiently and securely.
DOT to PHP Price
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Brief History of Polkadot: A Timeline
- 2016: Wood published the Polkadot Whitepaper.
- 2017: Wood co-founded the Web3 Foundation with the aim of supporting the research and development of the technology.
- 2017: Wood partnered with Former Ethereum Security Head Jutta Steiner to launch the Parity Technologies, which played a vital role in achieving the protocol’s core technology that was written in the whitepaper.
- 2019: Polkadot’s first version of codebase was released as Kusama, an unaudited canary canal.
- 2020, May: Polkadot’s genesis block was launched as a proof-of-authority network.
- 2020, June: Polkadot has transitioned to a proof-of-stake network.
- 2020, December: The rollout process for “parachains,” the specialized layer-1 blockchains that make Polkadot a multichain network, began.
How Does Polkadot Work?
Since Polkadot seeks to connect blockchains and achieve cross-chain compatibility, would it cause more traffic to those blockchains?
According to its platform, the protocol is expected to be speedy and scalable through the use of multiple parallel blockchains (parachains), which take the processing demand off of the main blockchain.
“Polkadot enables cross-blockchain transfers of any type of data or asset, not just tokens. Connecting to Polkadot gives you the ability to interoperate with a wide variety of blockchains in the Polkadot network.”
Basically, the main blockchain of Polkadot is called the relay chain, while it has specialized sub-blockchains called parachains and parathreads.
The relay chain is responsible for the security and governance of the network. It is designed to have minimal functionality; its main responsibility is to secure and coordinate the system as a whole.
Meanwhile, parachains are independent layer-1 blockchains that run in parallel to each other; they are connected to the relay chain. Each parachain can have its own design, token economy, functionality, and governance. Basically, these blockchains can have their own purpose while enjoying the security of the Polkadot network.
Then, parathreads are just parachains that live on a pay-as-you-go model. Parathreads are for short-term blockchain projects, where if the developers decided to jump out of the Polkadot network, they could.
On the other hand, the Polkadot network also uses a nominated proof-of-stake (NPoS) consensus mechanism. This means that holders of its native token can stake their tokens to nominate validators who produce blocks, help secure the network, and validate transactions.
Projects in Polkadot Network
To be clear, Kusama is not part of the Polkadot network itself, the former is just the latter’s sister network. Kusama serves as a testing ground for new features and innovations that is planned to be deployed in the Polkadot protocol.
The other projects in the Polkadot Network include:
- PolkaBTC: A trustless Bitcoin bridge for Polkadot, which allows users to transfer Bitcoin to the Polkadot network and use it as a token.
- Moonbeam: A smart contract platform that is compatible with Ethereum. It allows developers to deploy Ethereum-based applications on Polkadot with minimal changes.
- Polkastarter: A decentralized crowdfunding platform that enables projects to raise funds by utilizing Polkadot’s cross-chain token pools.
- Polkaswap: A decentralized exchange that leverages Polkadot’s interoperability and scalability. It allows users to swap tokens across different blockchains and is said to offer low fees, high liquidity, and customizability.
The $DOT Token
$DOT is the native token of Polkadot, which means that it is used to pay for transaction fees and other services on the network.
It also functions as a governance token, where holders have the right to vote on proposals that affect the development and direction of Polkadot.
Furthermore, parachains can be created by bonding $DOT tokens. Bonding also allows them to bid for parachain slots in auctions.
Lastly, because Polkadot uses NPoS, holders can stake their $DOT tokens to help secure the blockchain while earning rewards.
|$54.98 (November 4, 2021)
|$2.70 (August 20, 2020)
Where to Buy DOT in the Philippines?
Most exchanges support Polygon, including PDAX, Coins.ph, Binance, Huobi Global, OKEx, Coinbase, KuCoin, and more.
- To start buying, selling, holding, and trading DOT on these exchanges, users should create and verify an account by providing requirements such as personal information, an email address, a phone number, a valid ID, and a selfie.
- Choose the DOT trading pair; it could be DOT/USDT, DOT/USD, DOT/PHP or others.
- Buy DOT by typing the desired amount.
- Check the crypto wallet of the exchange, select the transfer or send option, and type in the wallet address of the receiver. Make sure that the wallet is compatible with DOT.
- Check if the transaction is complete. Usually, the amount has already been loaded to the wallet.
How to Stake DOT?
There are a number of possible ways to stake $DOT and earn passively,
Option 1: By using a non-custodial wallet. Just bond the DOT tokens, and choose a validator from the platform. Next, decide whether to add the rewards to the available balance or the bonded balance for compounding.
Option 2: By using exchanges. Just go to the “staking” section, and choose the “Stake DOT” feature. Select the amount and the duration that the tokens will be staked in, then confirm the transaction.
This article is published on BitPinas: Polkadot Philippines Guide | Where to Buy DOT and Usecases
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