Polkadot Price Today

What Is Polkadot (DOT)?

Polkadot is a blockchain technology and protocol that makes it possible for independent blockchains to communicate with each other.

Such communication from one chain to another allows users to exchange data and value in the form of DOT — the native token of the Polkadot network.

The goal of the entire project is to build a more decentralized internet (Web 3.0) through which blockchains of all types and sizes can connect, communicate, and share decentralized apps (dApps) and services.

The DOT token grants holders access to governance rights — including determining network fees, voting on overall network upgrades, and the deployment or removal of Polkadot components — across the entire ecosystem.

How Does Polkadot Work?

The main chain of the Polkadot ecosystem is called the Relay Chain, while an individual blockchain in the Polkadot ecosystem is called a parallel chain (or parachain).

Each parachain can communicate and trade data with the Relay Chain, which, in turn, can communicate and trade data with all the other parachains on the network.

So, in theory, all parachains should be able to communicate and trade data through the Relay Chain — parachain 1 transfers data to the Relay chain which then transfers data to parachain 2 allowing chains 1 and 2 to communicate.

Any one person or group can create their own custom parachain — on which to run a dApp, service, or business — with the help of Polkadot’s Substrate framework.

Then, once that parachain connects to the Relay Chain, it becomes interoperable with all the other parachains on the network.

History of Polkadot

Polkadot was founded in late 2016 by Peter Czaban, Robert Habermeier, and Gavin Wood (who is also a co-founder of Ethereum).

In the summer of 2017, Wood and Czaban co-founded the non-profit Web3 Foundation to support research and development of decentralized web software protocols and to manage the funds raised by the initial coin offering (ICO) that raised around US $145 M.

Then in 2018, Polkadot achieved its first proof of concept (PoC-1) and launched the BBQ Birch testnet, which demonstrated the capability to build and deploy a Web Assembly smart contracts chain with the Substrate framework.

How To Buy DOT

Buying DOT is the same as buying other cryptocurrencies.

First, partner with a crypto platform — like Binance.US — that offers the DOT token. Before selecting a crypto platform, be sure the one you choose offers more than just DOT.

The best platforms also give you the ability to:

• Buy, sell, and trade other cryptocurrencies
• Minimize the fees associated with each transaction
• Access the tools and information that can help you make the right choices

Second, create an account and verify your identity for increased security.

Third, fund your account with fiat currency (U.S. dollars) in one of four ways:

• Bank or wire transfer
• Debit or credit card
• Link to an existing bank account
• Via some other established payment service (not available on all platforms)

Once the transfer is complete, you’re ready for the fourth and final step: log in to your account, enter the amount of DOT you want to buy, and choose when you want to buy it.

When the DOT reaches your account, store the funds in a crypto wallet — either a cold wallet (an offline space like an external hard drive) or a hot wallet (an online space typically provided by the platform through which you made the purchase).

Cold wallets are the most secure but can be difficult to access quickly and run the risk of being lost or corrupted.

Though online, hot wallets are extremely secure and provide the added benefit of being immediately available when you want to initiate a transaction.

How To Sell DOT

Like buying DOT, selling DOT starts with opening and funding an account on an established crypto platform, such as Binance.US.

Once you’ve done that, selling DOT is as effortless as buying it: Just specify the amount you want to sell and when you want to sell it.

With some crypto platforms, you can even take advantage of advanced features like automated sell orders. This feature gives you even more control over when the system initiates your sell order.

With automated sell orders, you can instruct the system to:

• Begin the sale right away at the current market price
• Wait to begin the sale at a future market price

Once the sell order goes through and is verified by the blockchain, the platform through which you initiated the sale will deposit the funds (as the fiat currency of your choice) into your account.

From there, you can withdraw the fiat currency or use it to buy other cryptocurrencies.

How To Trade DOT

Trading DOT is just like buying and selling DOT.

• Open an account with a crypto platform like Binance.US
• Fund your account with fiat currency
• Use the tools provided by the platform to initiate your trades

The cryptocurrency trading market changes fast, so before you initiate any transactions, do your research, analyze the market, and establish a strategy to guide you in all your trading decisions.

How To Stake DOT

Staking DOT is an easy way to earn crypto rewards on your holdings without buying, selling, or trading. It starts with committing some or all of your DOT toward securing its blockchain and the proof-of-stake (PoS) network under which it operates.

Once you’ve staked your DOT, the network generates incentives based on a number of factors, including:

• The amount staked
• Transaction fees accumulated from circulating assets
• Newly created block rewards

As with buying, selling, and trading, the right crypto platform — like Binance.US — will make staking DOT as simple, secure, and convenient as possible.

Resources

Official Polkadot Website

Polkadot Whitepaper and Lightpaper

Download the Binance.US app to trade on the go: iOS | Android

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