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Polkadot (DOT) is a technology that is aiming to connect multiple blockchains. It can be used to transfer data, apps and tokens across multiple blockchains. Its goal is to further decentralize the web and make it easier to transfer items across different chains. This is interesting because it is helping to connect multiple blockchains and increase the efficiency of the crypto network. This technology can have a huge impact in a variety of situations.
What is Polkadot (DOT)?
Polkadot is a multichain network that can process transactions across parallel chains or parachains. Over 100 chains are linked to the network, allowing for up to 1,000,000 transactions to be processed per second. The network is verified through a proof-of-stake system. Those connected to the network can verify transactions to receive freshly minted tokens. Transactions are sent through the chain to be verified.
Most of the chains can still act independently, choosing to run the decentralized applications (dApps) and code they wish. DOT is a governance token, allowing users to vote on new protocols and the future of the technology. The amount of votes is based on the amount of token owned.
DOT has a market capitalization of just under $27 billion and nearly 1 billion tokens in circulation. It saw highs of nearly $50 in May 2021 and lows of $10 in January 2021. It currently is the 9th most popular crypto, beating hugely hyped tokens such as Dogecoin and Litecoin.
Polkadot faces serious competition, going head-to-head with crypto giants such as Cardano and Ethereum. All of these technologies are aiming to make crypto more efficient, connecting people from around the world. They are also focused on the environmental aspects of crypto. However, Polkadot has risen the crypto rankings at a much quicker speed than its competitors.
The crypto launched smart contract capabilities in May 2021, and already supports over 250 projects. This contrasts with Cardano and Etheruem, who did not find this amount of early success. Polkadot also allows developers to create new chains. Networks like Ethereum and Cardano rely on existing networks, limiting the decentralization the networks can have. While Polkadot faces some serious competition, it is quickly setting itself apart in the market.
How to Buy Polkadot (DOT)
Now that you understand the basics of Polkadot and its competitors, you may be interested in purchasing the asset. Fortunately, this is an easy process, involving just a few simple steps.
Step 1: Open an online account.
The first step in purchasing DOT is to open an account on a crypto exchange. This is very simple to do and usually only requires an email or phone number. While there are many exchanges to buy DOT, there are a few that stand out due to low fees, simple interface and speed of transactions. Checkout some cryptocurrency exchanges that support Polkadot below.