What exactly is Polkadot Network?
Polkadot is a new-generation blockchain protocol that allows multiple blockchain ecosystems to interact. It allows for true interoperability among multiple purpose-built blockchains through briding between them. This allows moving data between distinct blockchains. Additionally, it is expected to provide the strongest security, scalability, and the latest technological advancements.
The Swiss Foundation named Web3 Foundation helps to develop the Polkadot ecosystem. The goal of the Foundation is to provide a fully functioning decentralized internet that is focused on user sovereignty to ensure that data is protected and remain free of the oversight of an authoritative central authority.
What is the reason why the Polkadot Network is Needed?
The current version of the internet is centralized. Blockchain technology is able to create a decentralized web, however, existing blockchain networks do not have interoperability. Polkadot can be described as the future-generation Blockchain aiming to create an entirely decentralized internet.
As with any similar Blockchain platform, Polkadot stands for the concept of a decentralized internet that is where a small number of big companies will not be able to control the ways that users interact with technology or will not have the power to use users’ data security and privacy to serve their own private interests and rewards.
The internet we’re using now obliges us to agree to specific terms and conditions every time we download or install an application. The majority of the time we don’t even bother to look over these terms as they don’t come with the choice to either accept or deny these terms. If we decide to utilize an app or a web-based tool, we need to agree to the terms that are imposed on us. As we use the apps, we accumulate tons of important information that provides a thorough understanding of our daily life. This means that we give our personal information to the world for free, and cling to a tiny amount of faith that the organizations that control it won’t manipulate the data.
But, advancements in technology that is decentralized like Blockchain and advancements in open source have opened up the possibility of decentralized web systems. Decentralized websites can break free from corporate control and give individual sovereignty a higher priority. However, despite being among the largest technological breakthroughs that blockchain technology has experienced, its real-world implementation of the technology is subject to certain limits. Many of these limitations exist because blockchain ecosystems operate in isolation.
Multiple blockchains that are specialized have shown immense potential in areas like those of the Internet of Things (IoT) as well as finance, governance and identification management, asset tracking, and decentralization of the web. But the greatest advantages of these different blockchains cannot be put together since they are not able to communicate with one another to exchange information. This design limitation is a major obstacle to the widespread adoption of Blockchain. The Polkadot Protocol is a cross-chain system that is designed to enable blockchain interoperability, so that data of any kind can be transferred between blockchains, allowing for a vast variety of real-world applications.
What Polkadot Blockchain Network Intends to Provide?
Polkadot is a project that aims to join the holes that exist in the Blockchain sector as a whole. Each blockchain operates as a distinct network, with specific features and uses. Polkadot was designed in order to ease the exchange of these functions between different chains so that multiple chains can be joined and work as a single network with a wide array of uses. The Polkadot network was developed to meet the purpose by making it easier to achieve the following features:
True interoperability
Certain blockchain systems allow the exchange of tokens from one chain to the next. However, this is not the case with Polkadot. Polkadot system is an additional step higher as it allows the cross-blockchain transfer of any kind of asset or data. Any blockchain is able to connect with Polkadot and be able to work with a range of blockchains.
Scalability of transactions
Polkadot has a common set of validators that can be used to secure multiple blockchains. It allows the easy spread of transactions across many parallel blockchains, which aids in the scalability of transactions.
Easy innovation
Utilizing using the Substrate framework, it’s very easy to build an individual blockchain. It’s only a matter of minutes and the same chains can be linked to Polkadot for seamless security and interoperability right starting from the first day.
Future-proof and forkless
Like all applications, blockchains require updates and bug-fixing. Blockchain forking is used to add new features or fix issues within the blockchain. However, Polkadot blockchain that is ready for the future that doesn’t need forks to be able to adjust to the changing technology or update itself in line with new technology.
United security
Polkadot lets chains interact with one another, however, the chains remain autonomous in the way they govern. However, their security becomes joined, increasing their overall chain safety.
User-driven network governance
Each stakeholder is able to speak through each stakeholder’s voice on the Polkadot network. Any changes made to the network will be planned on-chain and carried out independently.
What is the role of the DOT (native token) in the Polkadot Network?
The native token is DOT used by the Polkadot network. It performs three major purposes:
The governance of the network
Governance is the process of deciding the fees for the network, setting auction structure, and arranging the introduction of parachains. Only holders of DOT are able to be a part of the governance.
Controlling the network
DOT can also help facilitate the consensus mechanism which underpins Polkadot. Holders of DOT are required to place their DOTs in danger and also called stakes to facilitate transactions across the parachains. DOT stakes act as a disincentive to criminal involvement within the network. Token holders get rewarded for successful transactions, but it is their loss to the community in the case of poor ones.
The process of creating parachains is by gluing with DOT
DOT holders must get their DOTs locked prior to adding parachains to the system. This is known as bonding for DOTs. It is a kind of evidence of stake. The parachains that are not useful or obsolete are eliminated by removing the bond tokens.
To read more – https://www.leewayhertz.com/what-is-polkadot-network/
LeewayHertz 