Polkadot is an open-source multichain protocol that helps in the transfer of all types of assets and data via cross-chain transfer. Thus, enabling a variety of blockchains to be interoperable with each other.
This feature of interoperability establishes a completely private and decentralized web that is completely controlled by the users. This also simplifies the creation of institutions, services as well as new applications.
The Polkadot blockchain technology is capable of connecting different permissionless networks, private chains, future technologies, and oracles that let these independent blockchains share information and transactions in a trustless manner via the Polkadot relay chain.
The native token of this protocol is DOT that has the following major functions:
|Creation of parachains via bonding|
|Providing network operations and governance.|
Basics of Polkadot
The price of Polkadot at the time of writing (October 2021) is $33.28. The current market capitalization stands at $32,864,147,629 with the total circulating supply standing at 987,579,314.96 DOT. The all-time high value of Polkadot was $49.69 as of May 2021 while the all-time low value was as low as $2.69 in August 2020.
Why buy Polkadot
There are four major components of Polkadot:
Relay Chain– It acts as the heart of Polkadot helping in the creation of consensus, shared security, and interoperability across the network of different chains.
Parachain– Independent chains that can create their own tokens and are optimized for a particular use case.
Bridges– Help in the connection of parachains and parathreads for them to communicate with external blockchains.
Parathread– Similar functioning as parachains but have flexible connectivity. It is based on the pay-as-you-go model.
Polkadot being a sharded multichain network can process transactions across various chains parallelly (Parachains). This further helps to improve the scalability of the parallel chains.
The custom blockchains can be easily developed with the help of a substrate framework and therefore, can be connected with the network in just a few minutes. This makes the network highly adaptive as well as flexible making them share information and functions across different participants. Polkadot requires no fork for an upgrade. New features can be automatically upgraded.
The governance system of the Polkadot network is highly sophisticated which secures it. The blockchain governance on Polkadot can be customized by the communities on the basis of their conditions and requirements.
Polkadot price trends
|Polkadot (Year closing price)||$6.80||$33.29|
How to buy Polkadot on CoinDCX
The three steps to buy Polkadot on CoinDCX are:
1. Sign up to the platform
The first step to buy Polkadot or any other cryptocurrency on CoinDCX is to create an account on the platform. Use a valid email ID and set a strong password during account creation.
2. KYC verification
The most important step to buy Polkadot on CoinDCX is to get the KYC verified. This step ensures the authenticity of the user. Submit the digital versions of the required documents for complete verification. The entire process takes less than 15 minutes.
3. Buy Polkadot
Once KYC verification is complete the user is asked to transfer the amount of money for which he/she needs to buy Polkadot. Once the transaction is complete the same amount of Polkadot is deposited in the wallet.