Third-generation blockchain networks are among the most significant winners in crypto in the last year. There has been a lot of talk lately regarding Cardano’s Alonzo Upgrade and the increasing importance of Solana in DeFi. When we talk about what the next major thing will be following Ethereum, they are usually called “the Ethereum Killers.”
The cryptocurrency market was once saturated with the presence of networks such as Bitcoin and Etherum. There are now numerous projects; it’s difficult to keep track! It’s not if you’re CoinGecko and have recorded 9404 coins. There’s a project that’s been considered as a potential candidate for the crown previously. However, in recent times, it has fallen unnoticed by many, despite being among the most prominent blockchains in terms of market capitalization.
The Polkadot was created in the mind of Ethereum’s cofounder Gavin Wood and was born out of his motivation to quit the Ethereum Foundation. Wood stated a variety of reasons behind the decision, among them his conviction that Ethereum had diverged from its original mission to build the future of blockchain.
This has led to one of the major issues that has affected this DeFi along with the NFT ecosystem since 2020: After Ethereum did not grow and the market failed to grow with the result, new alternatives were discovered.
This is the point at which Polkadot is a good fit. Polkadot is a blockchain-based network, but it is designed to function as “a blockchain of blockchains”, which is also known as a multichain. It is a large ecosystem that other developers can use to develop the chains of their choice, creating a totally distinct ecosystem.
This is why Polkadot can be so strongly linked with the evolution of Web3, the internet that will be decentralized in the near future.
How Does Polkadot Work?
To fully comprehend the way Polkadot intends to develop a brand new type of blockchain that is able to connect people, it is essential to know how it functions. Polkadots intends to expand the applications of blockchains by allowing any type of data to be transferred between blockchains instead of tokens.
Polkadot uses sharding, a technique that isn’t unique to it since other networks use it as well. Ethereum 2.0 will also incorporate it. Sharding is a method in which the network is divided so that data can run in parallel.
Sharding can be a challenging concept to comprehend initially, but the most important thing to be aware of about it is that it provides scaling by allowing blockchain companies to perform more transactions per second.
Imagine it as a highway. The more lanes you can have for cars to travel through, and the greater volume of traffic it can handle, the better. but it is known as throughput.
The network uses the main chain known as “the Relay Chain,” which will allow communication between the shards called “parachains.”
The networks are able to process transactions in parallel, which allows for more transactions per second.
· Flexible Protocol
In contrast to other networks that use the sharding method, Polkadot employs an adaptable method that allows parachains to join the main chain, letting them set the rules they want to follow.This allows for a greater level of control and decentralization.
When you join these parachainsPolkadot employs together with bridge parachains, you create an ecosystem that connects to blockchains that are not part of the Polkadot ecosystem, such as Ethereum, Binance Smart Chain, etc. Although this is possible with other networks, it’s not supported by Polkadot.This creates a private internet network that is extremely simple for developers to incorporate to expand the use scenarios greatly.
· Nominated Proof of Stake
Polkadot employs an algorithm that is a consensus known as Nominated Proof of Stake, which is a variation on Proof of Stake. If you’re not familiar with the concept of consensus algorithms, you can get an explanation in this article.
This variant of Proof of Stake allows token holders to take on the role of validaters or nominators, rather than restricting participation to people who have the minimum number of tokens. The consensus mechanism used by the network is utilized by other networks such as Cardano as well as Cosmos and has been proven to boost participation and improve decentralization.
· Node Roles
Combine this consensus mechanism with the independent nature of parachains, and you’ll see Gavin’s vision becoming a reality. However, it doesn’t stop there. There are two more functions that a node could perform in this network: fishermen and collators.
Collators are nodes that limit themselves to storing the entire history of each parachain, then aggregating it into blocks so that it is later joined to the chain relay.
On the contrary, fishermen are nodes which oversee networks to ensure the integrity of validators and that they are identified. The specialization of these roles leads to a complex system that improves efficiency and allows the network to be able to adapt to changes.
How to Buy a Polkadot?
One of the first things you should do is buy Bitcoins or Ethereum using your credit card through the Polkadot (DOT) Exchange. Then, you can convert them into polkadots.
Take these actions:
- Buy Ethereum or Bitcoin through the exchange you would prefer.
- Transfer the purchase of Ethereum or Bitcoin to a currency exchange that is compatible with Polkadot.
- Finally, convert the cryptocurrency to Polkadot.