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What is Polkadot and Why is it One of the Hottest Blockchains Right Now?

Polkadot is not as famous as Bitcoin, but the situation is changing rapidly. Now, the Polkadot network is one of the fastest-growing systems in the cryptocurrency world. So, if you are thinking about swapping your DOT to KSM, it might be not the wisest decision. Let us elaborate on it.

What is Polkadot?

Polkadot is a new type of blockchain, or rather a system, a network. With the development of blockchain technology, the world has faced an issue: now, different blockchains aren’t able to communicate one with another and exchange data seamlessly. Neither such system could get data from external systems.

Polkadot is aimed at solving the issue, along with some other issues that the technology has started facing. 

The Polkadot Network, or How Does It Function?

The Polkadot network is different from a standard blockchain. It consists of several components that collaborate to provide us with what we know as the main network:

  • The relay chain: it is the core of the entire system. It provides the security of the network and enables communication between other network layers. 
  • Parachains: these are blockchains connected to the main chain. Parachains run independently one from another. The functioning of one parachain doesn’t influence other parachains. Parachains function as independent systems or networks connected in a single system.
  • Parathreads: they function just like parachains but they connect to the system only from time to time when it is required.
  • Bridges: they allow the main network to communicate with other, even incompatible blockchains. 

What Issues Does the Project Solve?

Now, when you know what is Polkadot, you might be wondering why it has gained such popularity and what issues the project solves. As we have mentioned, the Polkadot project solves A LOT of issues:

  • Scalability: parachains function as separate blockchains with their rules, etc. So, it doesn’t influence the scalability level of the chain in general.
  • Customization: once more, parachains are just connected to the Relay Chain to communicate, but other than that, they can operate as separate blockchains and can be customized accordingly. 
  • Interoperability: the network structure allows different blockchains to communicate and exchange data freely. Let us remind you that earlier, it was impossible. Blockchains used to operate as closed systems. Moreover, there was no option to get data from external sources. 
  • Governance: the parachains function as separate blockchains with their own governance. 

Bottom Line

PhonesWiki
PhonesWiki

Polkadot has perspectives, and for now, we can already observe the rapid project development. With more adoption of blockchain and related technologies, the Polkadot importance and therefore, the coin price, is going to grow exponentially. For now, Polkadot is still a developing project that is introducing new features and functionalities constantly. It is the best time to invest in it for those who are aimed at long-term profitable investment. 

PhonesWiki
Kin
Tech enthusiast among other things, i don't really like exposing myself 🙂

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