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Polkadot is an innovative project that is attracting huge interest from investors and developers developing their own innovative projects. How much does a cross-chain blockchain cryptocurrency cost? How does Polkadot work, what is it anyway and what is the current Polkadot exchange rate (DOT)? Find out in this article!
How much does Polkadot (DOT) cost?
Dot is a unique cryptocurrency from the top, in terms of market capitalisation. Its current market capitalization is . During its record-breaking rally, DOT reached a valuation of $55 per token, which placed it in the Top 10 cryptocurrencies on the capitalization ranking.
What cryptocurrency quotes can DOT holders look forward to?
How much dollars for DOT? Polkadot (DOT USD) cryptocurrency exchange rate in a 24-hour period
The current price of Polkadot (DOT) is , which means that over the past 24 hours DOT has changed its price by .
How much PLN for DOT? Polkadot (DOT PLN) exchange rate in 24h period
On the Polish Polkadot markets, the price is , which means that the price of DOT paired with PLN has changed by in the last 24 hours.
What is the Polkadot (DOT) cryptocurrency?
Polkadot is a protocol that allows multiple chains to operate within a single network, it is a solution to the problems of current blockchains that operate with minimal mutual communication.
The DOT token, on the other hand, serves only two functions - it allows holders to influence the future of the protocol, and it is used for stakeout, which is to verify transactions on the network and mine new DOT tokens.
Currently in circulation is DOT.
What is the Polkadot (DOT) network?
At the centre of the Polkadot network is the Relay Chain and multiple parallel blockchains, which we call parachains. Polkadot's network also has a layer that connects networks to each other - so-called bridges, which enable data and asset transfers between most blockchains, and interestingly Polkadot bridges can also be used to connect to databases other than blockchains.
Polkadot is designed to be a fast and scalable chain and this is made possible precisely by parallel blockchains, the aforementioned Parallel Chains, which take most of the transaction processing demand off the main network.
As a result of moving computation to parachains, the Polkadot network processes more than 1,000 transactions per second. Incomparably faster than Bitcoin (which processes barely 7 tps) and Ethereum (30 tps).
The development of the network and the addition of new parachains, will allow Polkadot to process transactions at higher speeds - perhaps up to a million transactions per second!
What is the Polkadot protocol?
The Polkadot protocol supports multiple blockchains and allows them to communicate with each other and transfer funds between them. Connecting to external networks, however, would not be possible without bringing these blockchains together in a central chain network - the Relay Chain - that connects the operation of multiple networks.
Parachains has the unique ability to support features present in other blockchains, including smart contracts (for Ethereum) and UTXO transactions (for Bitcoin). This feature is not a permanent part of the design - it can be added or removed from Parachains at any time.
What is Relay Chain?
Relay Chain is the central blockchain used by the Polkadot network, and is what allows different blockchains to connect across a unified network. The central chain, or relay chain, has deliberately minimal functionality and does not support smart contracts.
The main task of Relay Chain is to coordinate the entire system and its associated parachains.
Who created Polkadot?
Parity Technologies is actively developing Polkadot, but who is behind the project?
The creators of Polkadot are not people from nowhere. Gavin Wood and Jutty Steiner are former directors of the Ethereum Foundation, who initially just wanted to develop node software for Ethereum. However, the initial Parity Ethereum evolved into Parity Technologies, and in the next step withdrew its support for Ethereum, focusing on the Polkadot project.
The project was furthermore created by Robert Habermeier and Peter Czaban. Habermeier is an experienced blockchain and cryptography researcher. Robert Czaban is the Chief Technology Officer of the Web3 Foundation.
The entire team boasts an extensive track record in the specialised fintech industry.
Parity was founded in 2015, and already in 2018 it launched two Proof of Concept algorithms. Later in the same year - 2018 - Parity launched its first parachain, laying a solid foundation for the first Polkadot code.
Polkadot and Dot were launched in 2020, but the launched project did not yet include Relay Chain and Chain Auctions (i.e. buying up seats in the project protocol).
Where to keep the DOT?
Investing in cryptocurrencies is a huge responsibility. The security of the assets depends most on the user who holds them - everyone is their own bank.
Where to hold DOT and which wallet to choose for this cryptocurrency?
Equipment portfolio for Polkadot DOT
The safest choice for storing almost any cryptocurrency is a hardware wallet - and DOT is no different.
Hardware wallets are specialised devices, boasting the highest level of security among cryptocurrency wallets. They look like innocent flash drives - but don't let their small size fool you, these devices are the most secure way to store DOT!
There are two main companies that offer hardware wallets - Trezor and Ledger - but for DOT, Ledger seems to be the better choice. Why?
DOT is one of the few cryptocurrencies that can be stake directly on the Ledger Nano X hardware wallet. This ensures that DOT is in the protection of one of the safest wallets on the market, but also takes part in the confirmation of transactions (Proof of Stake).
Online wallet for Polkadot
The most convenient solutions are online wallets that you can install on your device - but some don't even require this!
Parity Technologies has taken care of DOT hodlers - it has created a couple of solutions that will undoubtedly please its users. We are talking about Polkadot extension, Polkadot-JS UI wallet and Parity Singer, a wallet for mobile devices.
For those who prefer a more versatile solution, there is of course Trust Wallet.
Cryptocurrency exchanges as wallets for DOT
People who invest in traditional markets, or completely new investors, often pay little attention to the security of their digital assets. However, changing the price of a cryptocurrency is not the only threat that can be found online. Another - even more dangerous - is frequent hacking and theft.
Cryptocurrency exchanges are a very common choice for online wallets, but remember that this is not the safest way to store cryptocurrencies - and for two reasons.
First of all - the cryptocurrencies in your exchange account are not yours! A common saying in the cryptocurrency community is - your funds, your keys. And this can be further turned into the question - Your Keys? If the answer is yes and you have the private key to your funds, the cryptocurrencies are indeed yours.
Otherwise, it is the stock exchange that holds your funds.
The second risk is insufficient account security. Therefore, if you are already storing your cryptocurrencies at an exchange location (exchange or bureau de change) secure your account with two-step verification and new IP verification.
Is it safe to invest in Polkadot (DOT)?
Polkadot is a young project and has very quickly gained huge investor interest. It is more interactive than other projects and solves the problem of lack of communication between blockchains.
Developers can link the blockchains of their projects to the Polkadot system, but can use existing solutions provided by the protocol.
Polkadot only appeared on exchanges in Q3 2020, making many investors say that its price is only the beginning of a longer journey. The project in question is unlikely to threaten Bitcoin, but some indicate that Wood (Polkadot's creator) will try to threaten Ethereum.
Risk of investing in Polkadot (DOT)
Polkadot's young age is both a huge advantage and a huge threat. Just 2 years on the market does not inspire much confidence in investors. Rather, such a short time indicates huge volatility in the price, lack of price protection or possible government regulations that would limit the use of Polkadot.
How to buy Polkadot (DOT)?
You can buy DOT in just a few steps! The first is to find a suitable cryptocurrency exchange or bureau where you will exchange your funds for DOT.
Then you should create an account, confirm your identity and deposit funds. The exchange is a matter of just a few clicks, after which the DOT will be in your digital wallet.
Buy Polkadot (DOT) on cryptocurrency exchanges
As you already know, Polkadot is still a fresh project - just two years old. Despite this, thanks to the huge fascination of investors and the rapid rise in price and market capitalisation, DOT is a widely listed digital asset.
Dot sells such exchanges Binance, OKX, Coinbase or FTX.
How much DOT? Polkadot calculator
Polkadot Calculator on Eger is an accurate calculation of how much you would buy a cryptocurrency for a certain amount of money. Find out how much you can buy, or how much you can sell for - convert DOT and make your decisions!
Egera is not responsible for investment decisions made as a result of the article. The content is not investment advice and should not be taken as an encouragement to trade cryptocurrencies. Do your own research before making a decision.
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