What is Polkadot DOT and how it works
Categories: Crypto News US
What is Polkadot DOT and how it works
GavinWood co-founded Polkadot — he also co-founded Ethereum — to take thecapabilities of a blockchain network to another level. The blockchain’s cryptocurrency iscalled DOT. Since its launch in 2020, the Polkadot platform has become one ofthe bigger crypto networks in a relatively short time.
Polkadotoperates using two blockchains — the main relay network, where transactions arepermanent, and a parallel network of user-created blockchains, calledparachains. Parachains are Polkadot-based independent blockchains thatconnect to and run off of Polkadot’s main blockchain (relay chain).
Parachainsprocess transactions via sharding — splitting a blockchain into multiplepieces, or shards, and storing that separated data across multiple differentcomputers. In this way, the computational burden on each computer is lessened.The network can process a larger volume of transactions — than if the shardinghad not occurred — at extremely fast transaction times. Parachains can becustomized for myriad uses like building apps; they can support other coins,and may benefit from the main blockchain’s security.
Whatdifferentiates Polkadot from other blockchains is its core mission to solve theproblem of interoperability by building so-called bridges between blockchains.Polkadot is not the only system trying to act as a translator to helpblockchains talk to one another.