Polkadot is an open-source blockchain, a decentralized web protocol, and cryptocurrency designed by Gavin Wood, the founder of the Ethereum platform. Polkadot has been developed to provide users with a much better and more efficient blockchain platform than Ethereum. Even though it has been developed as a better blockchain platform, it has its interoperability feature with other blockchain platforms.
What Is Polkadot?
The Polkadot network is one of the biggest projects funded by several investors in the history of blockchain and crypto. The founder of the Ethereum platform and developer of the solidity programming language, Gavin Wood, founded the Polkadot network. This network works with private and public key cryptography to guarantee maximum security for users. While the private key is used for authorizing the transaction on this network, the public key uses the recipient address as its hash.
Transactions are verified and confirmed in blocks every six seconds to form the Polkadot blockchain. Polkadot works on a user-driven governance model, which means that token holders have to give voting to run the network. Council members make important decisions about improving the network system and providing maximum security by eradicating poor behavior.
How does the Polkadot network work?
Polkadot works on parachain architecture, nominated proof of stake consensus mechanism and substrate blockchain framework. The native token of Polkadot is known as DOT and is one of the top 10 cryptocurrencies in the market. To keep the Polkadot platform functioning smoothly, DOT holders have to stake their DOT tokens and actively participate in Polkadot functions.
- Parachains
Modular frameworks that support building applications in a blockchain network are known as Polkadot parachains. These modular frameworks allow developers to maximize optimization and flexibility in the application development procedure. Different components like data storage, transaction fees, pallets, and speed in this framework are completely customizable.
Parachains are flexible, which helps developers to emphasize their competencies and remove the need to build a network system for each use case. Parachains within this Polkadot network can connect to a relay chain which helps achieve transaction finality, consensus, and voting logic. Each Parachain consists of a collator node for collecting transactions and producing state transition evidence. Cross-chain message passing feature helps to facilitate asset transfer and quick communication among parachains.
- Proof of stake consensus mechanism
A decentralized consensus algorithm known as a nominated proof of stake rewards participants for supporting and nominating the validators. Proof-of stake consensus mechanisms help ensure user satisfaction, network efficiency, or security. Participants can become validators and nominators by staking their DOT tokens. Every block will reward the nominators and mechanism. Polkadot uses a consensus algorithm based on the proof of stake mechanism. This mechanism helps to achieve fast transactions at low cost and is much more eco-friendly compared to the proof of stake consensus protocol.
- Substrate
The substrate is a revolutionary technology developed in the cryptocurrency world. Substrate blockchain framework helps to develop new blockchain and add the blockchain to your project. It is an application that can be developed on the Polkadot ecosystem. Substrate projects work on any browser or desktop device. This technology uses advanced and modern technologies in its network code. Developers benefit from substrate projects as they can focus on business logic instead of the programming language.
Artem Ilchenko is a seasoned crypto enthusiast with a journey dating back to 2016. With a wealth of experience in blockchain technology, DeFi (Decentralized Finance), NFTs (Non-Fungible Tokens), and the broader cryptocurrency ecosystem, Artem is a passionate advocate for the decentralized future. His deep understanding of the intricacies of blockchain and its innovative applications has positioned him as a valuable resource in the ever-evolving world of digital assets. Artem’s commitment to exploring and promoting the potential of blockchain technology has made him a noteworthy figure in the crypto community.