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Polkadot (DOT) is a pretty new player in the crypto game. Made by Gavin Wood, one of the folks behind Ethereum, it's a blockchain that's like a bunch of different chains working together. It uses these special side chains to make everything run smoothly. They made Polkadot while Ethereum 2.0 was getting set.

Whitepaper Description

The whitepaper for Polkadot came out on November 14, 2016, and they sold the first tokens in October 2017, raking in nearly 500 thousand Ethereum. The big idea behind Polkadot is to shake up the crypto world by making a decentralized setup where folks can build blockchains and easily use decentralized finance.

Since then, Polkadot’s become a big deal, hitting close to a $24 billion market cap, snagging the 9th spot overall. Right now, the price is around $24.65, and it hit its highest at $49.69.

Looking at the price moves, the bulls (the folks who want the price to go up) have been doing better lately after a long stretch of the bears (the folks who want the price to go down). The DOT value took a jump up to $27.1, with a strong push from the bulls in the first four hours of trading.

Polkadot’s a top choice for the newbies in the crypto world using this multichain sharding thing to run things. This sharding deal lets different blockchains share info, making them work together. DOT makes public and private blockchains connect and helps them get better at working and managing stuff. So, it’s all about how the system runs, how it’s set up, and making these parachains.

And Polkadot's got some goals - sorting out prices, making things work together better, and making it easy to upgrade. But one hitch is the slow speed of transactions in the blockchain world.

But with Polkadot doing its multichain thing, it’s speeding up how things interact. See, different projects have different needs. Polkadot’s got features that let each project do its thing better. Plus, it’s fixing how different chains talk to each other, making a whole new financial world where stuff moves smooth between different projects.

Let’s get to the basics. Polkadot's got four main parts. The big one's the Relay Chain. It’s like the heart of the whole deal, making sure everything's safe and agreeing on what’s happening. It moves and checks the blocks that get traded.

This Relay Chain does only what’s super necessary for security and stuff, making it fast. It’s processing about 1,000 transactions per second. Then there are these Parachains, which are like their own little blockchains doing special jobs. They use Polkadot’s resources to check if trades are legit. They also get to set their own rules while using Polkadot's security.

Then there are Parathreads, kind of like Parachains but on a pay-as-you-go plan. They're good for projects that don’t need to be in the system all the time. And lastly, Bridges. They link up Parachains and Parathreads with other networks like Bitcoin, making everything work together.

Polkadot's got its uses planned out:

• Early birds jumping into Parachain auctions get the goods.
• Things might be quiet until Polkadot fills up a lot of those Parachain spots.
• At some point, some Parachains will get super busy, and everyone will notice how good they are.
• The early birds get rewarded well for taking no risks.
• Word spreads about these early birds getting sweet rewards.
• People get mad that they missed out on joining in.
• This whole process will happen again for KSM, maybe even more.
• The key thing to see if Polkadot's doing well is how much stuff and activity is happening on Parachains. The market value of Parachains will probably be way more than Polkadot itself.

DOT's value will depend on its usefulness, so don't just consider the price. Having DOT lets you into the Parachains, which is huge in tech. So, support the DOT world, and the price will follow.

The DOT launch was already expected, which increased the price before it happened. But now, these Parachains need to start doing good stuff and bringing in business to really get folks interested in Polkadot.

Posted Using InLeo Alpha