Polkadot will make you a millionaire in 2021
You know how we have covered a ton of different blockchains like Solana and Tezos and Cardano and Monero and it just seems like there’s a never-ending list of these coins and platforms for you to throw your money at.
Basically, each one does something a little different, but they say they’re the next new and crazy idea that will solve the scalability trilemma.
Well, Polkadot offers itself as something actually new. They plan to be the very first layer-0 solution.,
What Polkadot is, how it plans to solve the big problem of blockchains talking to each other and as always, in the end, we’ll get into the tokenomics of the DOT coin. And what that means for the future price.
What Actually, Polkadot? Why Many DOTs?
In crypto, we see an awful lot of emphasis given to names. And sometimes, they can seem a little odd. The Polkadot blockchain name can actually be a huge asset to help beginners visualise what it’s actually about.
You can probably guess where this is going. Polkadot is kind of similar to you know Polkadots the fabric pattern featuring a blank background with scattered DOTs is a good starting point to visualise this project.
That’s because right now, crypto is a little unfriendly. So we have a lot of these competing projects doing similar things using similar blockchains working in isolation.
Each of these blockchains can basically be seen as one individual DOT. But that’s just the start. The reason Polkadot is important is that it lets us connect all these chains with each other.
So imagine you have this huge field of Polkadots, but you could actually draw lines in between all the DOTs and start to connect them.
Each DOT would represent an individual blockchain, and drawing lines between them all connect all of these different projects.
You might be wondering what problem does this actually solve.
Number -1 Lack Interoperability
One of the biggest problems we constantly see in the crypto space is a lack of what they call interoperability. The problem is like the problem in early personal computers before we even had the internet.
We have all these blockchains hanging out like stars and space. Drifting around without any actual way to interact with each other.
Polkadot is basically a way to make it easy to create and connect blockchains to each other. Along with our example, computers were great, but the ability to actually send and receive information between two different computers really got people on board.
Polkadot is betting that the same thing is going to be true for blockchains Bitcoin and Ethereum, and Cardano and all the other big chains might be great on their own. But they need to be able to interact with each other easily.
This is where we get into the Polkadot blockchain, which actually serves as what they call a layer-0 function.
Think about it like a neighbourhood. So we have our little crypto neighbourhood with all our blockchains, basically like individual houses. But how do all these houses get electricity, water, and roads, so they’re all connected?
Polkadot wants to get even more fundamental than layer one individual blockchains and just give them an easy way to connect them all together.
This layer zero foundation is intended to make building and using blockchains easier.
How It Works?
We can understand how it works how does Polkadot actually work. At its core, Polkadot is just a proof of stake blockchain that connects other blockchains to each other. They’re all connected but
How do they actually become connected?
How do they maintain their connection?
What does being connected actually do?
For those blockchains. We’re going to answer each one of these questions by talking about two main components of Polkadot:
That exists on the network. Think about it like this. The Polkadot network actually works as a hub and spoke model.
For those unfamiliar with this analogy, this means that there is one center and many different branches coming off the center. Read More...
Categories: POLKADOT ECOSYSTEM