Summary

It positions itself as a new generation blockchain protocol capable of bringing together multiple specialized chains into a universal network. Polkadot was created by the Web3 Foundation and is committed to providing infrastructure for Web 3.0, aiming to break Internet monopoly and empower individual users.

Introduction

Blockchain has been around since the inception of Bitcoin. Although it has been called a breakthrough technology, it also has certain drawbacks. Currently, independent blockchains cannot communicate with each other. If interoperability can be introduced, different blockchains can exchange data, giving birth to more powerful applications and services.

Developers have tried to "build bridges" between blockchains to allow the two blockchains to collaborate. However, connecting many blockchains (such as hundreds or thousands) simultaneously is still a problem that needs to be solved. The Polkadot team and even the Web3 Foundation are confident that they can launch a quality solution within a few years.

What is Polkadot?

Polkadot is called "an open source protocol created for all mankind" and claims to be "the next stop in the development of blockchain technology" ". The concept of Polkadot was originally proposed by Dr. Gavin Wood, co-founder of Ethereum. The development team hopes to focus on the security, scalability and innovation of blockchain. To do this, an infrastructure must be created that supports new ideas and concepts while ensuring interoperability.

A single blockchain within the Polkadot ecosystem is called a parallel chain (parallel blockchain) , the main chain is called the "relay chain", and the two can always exchange information conveniently and quickly. Parachains are similar to independent shards in the planned implementation of Ethereum 2.0.

Developers, businesses, or individuals can customize parachains through Substrate, a framework for creating cryptocurrencies and decentralized systems. Once the customized blockchain is connected to the Polkadot network, it can interoperate with other parachains.

Through the above design scheme, it becomes easier to build cross-chain applications, products and services. Before this, large-scale cross-chain transfer of data or assets was difficult to achieve.

The data security and verification work of the parachain is completed by network verifiers, and a small number of verifiers can guarantee multiple parachains safety. Validators are also responsible for ensuring that transaction information can be transmitted smoothly among multiple parallel chains to improve the scalability of the network.

Advantages of Polkadot

For developers, the Polkadot ecosystem has many advantages. The limitations of current blockchains create a number of core issues, including: scalability, customization, interoperability, network governance and upgradeability.

In terms of scalability, Polkadot has solved many problems. As a multi-chain network, it supports parallel transmission of multiple independent blockchains, clearing a major obstacle in the field of blockchain technology. Parallel processing is a major breakthrough in the field of blockchain and will pave the way for the global application of blockchain.

Users who need to customize their blockchain can dig deeper into Polkadot’s other features. Currently, a “one-size-fits-all” blockchain infrastructure that meets all project needs does not exist. Each project has unique needs, and Polkadot is optimized to support independent blockchains to achieve personalized functions. With the support of Substrate, developers can effectively adjust their independent blockchains according to project needs.

Ensuring seamless connection between projects and applications and realizing data sharing are important means to improve interoperability. While it’s unclear what products and services will eventually emerge, there are many potential use cases. Polkadot has the ability to create a new financial ecosystem, and each parachain only needs to implement a specific function.

Specific parachains can be independently operated and managed by relevant communities in an exclusive manner. In addition, each community is an integral part of the entire Polkadot network and has a significant impact on how Polkadot is governed in the future. Feedback collected from the community will provide valuable input for the development of the Polkadot project.

In addition, Polkadot supports parallel chain upgrades, and the process is extremely simple. The native chain avoids hard forks that may cause community divisions, and instead upgrades smoothly in a frictionless manner.

Detailed explanation of DOT tokens

Polkadot and Other blockchain infrastructure projects are similar and also have native tokens. Just like ETH is the token of Ethereum and BTC is the token of Bitcoin, DOT is the network token of Polkadot.

The use cases of this token are as follows: First, it gives token holders the governance rights of the Polkadot platform, including determining the network fees, voting for overall network upgrades, and deploying or removing parachains, etc.

In addition, staking DOT can promote network consensus. Similar to other networks that support staking, the staking mechanism incentivizes DOT holders to abide by the rules at all times. Why does it have this effect? Because if users don’t follow the rules, they will lose their staked tokens.

The third use case is to use DOT for binding. When a new parallel link is connected to the Polkadot ecosystem, it needs to be bound to DOT. During the binding period, DOT is locked. After the binding period ends and the parachain is removed from the ecosystem, DOT will be released.

Pledge and binding of Polkadot platform

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In addition to data and asset transactions, Polkadot also improves interoperability through other methods. It introduces a token pledge and token binding mechanism to encourage users to act with integrity.

The concept of token staking in blockchain networks has been around for a long time. This consensus model is called Proof of Stake (PoS), and it works by providing rewards to users who stake their tokens in the network. On the Polkadot platform, honest and trustworthy pledgers are rewarded, and misbehaving pledgers will lose their pledged tokens.

As mentioned above, new parachains are connected to the network by binding DOT tokens. “Bundling” means depositing tokens into the network for a specific period of time. Blockchains that have lost value and projects that are no longer maintained will be removed, and the bound tokens will be "returned to their original owners."

Summary

In theory, Polkadot appeals to developers on many fronts. In addition to independent developers, the Polkadot ecosystem is also suitable for small companies and large enterprises. It supports the deployment of customized blockchains according to individual needs, and upgrades and iterations are very simple. This new concept is beneficial to the development of the entire cryptocurrency field.

Currently, the Polkadot ecosystem is just getting started. A large number of projects are in the development stage, and it will still be some time before the first large projects come online. PolkaProject data shows that there are currently hundreds of projects under development, including wallets, infrastructure projects, tools and decentralized applications (DApps).

Polkadot founder said that although DOT tokens have monetary value on the trading platform, their main value does not lie in speculation, but in the previous article The use cases described.