👀 In this article, we’ll take a closer look at the platform – Polkadot and its cryptocurrency DOT, and provide information on what it is and how it works. Here is our brief guide to get you on a clearer path to understanding.
🌰 POLKADOT IN A NUTSHELL
👉 Polkadot is designed to be a fast and scalable protocol that connects blockchains – allowing value and data to be sent across previously incompatible networks. It uses the nominated Proof-of-Stake (PoS) consensus algorithm.
💰 As Polkadot’s native coin, the DOT token has two uses. The first is for staking on the Polkadot network to bolster network security (also called bonding). It also acts as the governance mechanism where DOT holders are given rights and abilities to participate in voting through referenda (a voting scheme weighted by stake).
📜 POLKADOT HISTORY
💡 Polkadot was initiated by Peter Czaban and Ethereum co-founder Gavin Wood in 2014. After the Polkadot whitepaper was published in 2016, the Web3 Foundation was launched the following year. The foundation then raised $145 million for the development of the protocol by selling DOT tokens. Another token private sale in 2019 raised USD$43 million.
Polkadot was created to address three major obstacles hindering the growth of blockchain technology: speed, scalability, and security. Most first-generation blockchains have made incremental improvements over time, but they remain inhibited by technical limitations such as scalability.
📊 POLKADOT TOKENOMICS
The finite supply of Polkadot totals just under 1.27 billion DOT. Currently, the supply of DOT in circulation is approximately 1.15 billion. The current market capitalization of Polkadot is approximately USD$5.3 billion.
⛓ POLKADOT’S PARACHAIN SOLUTIONS
💱 The Polkadot protocol is designed to allow unrelated blockchains to securely talk to each other so that value or data can flow between them 💫 without any intermediary. Via the use of many parallel blockchains (or “parachains”) and a relay chain, Polkadot can facilitate a much more scalable blockchain ecosystem. The protocol’s bridges and parathreads allow different blockchain networks to interact with each other.
🔗 Parachains are essentially PoS blockchains that run independently and can be completely customized by the owner. They are focused on applications with features and programming logic that is limited to themselves. These chains serve as the governance layer of the network and are a management mechanism.
🖧 The relay chain is responsible for shared network security, consensus, and interoperability. It validates data and ensures that consensus is achieved, and that transactions are executed.
💲 POLKADOT PRICE
When Polkadot initially launched in mid 2020, it had an initial value that fluctuated between USD$3.85 and USD$6.28. By early 2021, the bull market run saw DOT gain in value to an initial peak of USD$47.96 in May. At its next price peak in late 2021, the Polkadot value reached an all time high price of USD$53.88 before coming off its highs in the subdued 2022 bear market.
👉 EARNING POLKADOT WITH BLOOM
📲.The Bloom shopper rewards app allows you to earn Polkadot and other crypto (like Bitcoin, Ethereum and a range of other altcoins) with every purchase made on your Visa card 💳.
🦉 All you need to do is download the Bloom app, register an account, link your Visa card and shop anywhere using your credit or debit card.
💰 With every purchase, you will earn Bloom Coins by simply using your Visa card💳. The more you use your card, the more Bloom Coins you will earn.
🎁 Bloom Coins can be redeemed for in-app rewards and converted into DOT.
🆓 Converting crypto on Bloom, such as DOT, is free of charge and has no gas fees!
💎 Earn exclusive 3x Bloom Coin rewards with a Premium Membership.
The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website's content as such. Bloom does not recommend that any cryptocurrency or NFTs should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.