17 November 2021 | ZebPay Trade-Desk
Polkadot is an open-source multi-chain partitioning protocol that offers cross-chain transfer of any type of data or asset, not just tokens, making various blockchains interoperable. This interoperability aims to create a totally decentralized and private web, controlled by its users and to simplify the creation of new applications, institutions, and services.
The Polkadot protocol connects public and private channels, unauthorized networks, oracles, and future technologies, enabling these independent blockchains to reliably share information and transactions through the Polkadot relay chain.
The DOT internal token protocol has three clear goals: to provide governance and network operations and to create parachains (parallel chains) per link. It was founded by a Swiss foundation called the Web3 Foundation. And its founding fathers are Dr. Gavin Wood, Robert Habermeier, and Peter Czaban. The DOT token is freely redeemable and can now also be found on Zebpay.
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October brought great news and popularity to the Polkadot Chain. Since the news of its auction, of the first parachain of Polkadot going live on 11th November it started an upward rally. The asset created a new All-Time High on November 4th touching $55. That week Polkadot led the overall market rally with a rise in price by about 24.8%.
The hype certainly resulted in some great outcomes for the Polkadot blockchain such as Digital Finance Group a crypto investment firm allocated about 500,000 DOT to Acala, which is a DeFi platform created on the Polkadot blockchain before its bidding for a parachain slot. Moonbeam and Acala Network who were competing for securing a slot had raised a combined total of around $882 Million to bid in Polkadot’s para-chain auction.
The DCG’s mining subsidiary Foundry has launched a staking business for exchange, hedge fund, and other financial groups where DOT is also being staked. As the auction of the parachain began the crypto market was in red with Dot leading it, this can be attributed to the immediate dips after the ATH due to the “sell news effect”. Recently the DFG group which is a global blockchain investment firm having $1 billion AUM announced that it has pledged 300,000 DOT tokens to support the Astar Network bid for para-chain
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Polkadot can be updated automatically without the need for a fork to implement new features or remove bugs. The network has a very sophisticated user-driven system of governance that also helps protect it. Communities can customize the governance of their blockchain on Polkadot according to their changing needs and conditions.
The DOT token entered the market in August 2020 and had phenomenal growth in a very short period of time. The price has been somewhat consistent except for the fall in the months of June and July which is mostly due to the after effect of the market crash in May and the asset trading in a very small range. The prices have rallied by almost 328% since January.
The last 4 months have been good for the token as it continued to increase substantially touching an ATH in November of $55. The market cap has followed the same trails as of the price and shown good growth now standing at $39 Billion holding on to its ranks in the top ten assets. Volume has been volatile with negative growth seen in June & July as well as October. The fall in volume in October is due to the fact that parachain auction led to the fall in the circulating supply of the coin. The volume has risen by around 49.6% in this quarter itself.
Polkadot is known as a multi-channel shared network, which means that it can process many transactions on multiple chains in parallel (“parachaines”). This parallel processing power improves scalability. Custom blockchains are quick and easy to develop using the Substrate framework and can be connected to the Polkadot network in minutes.
The network is also very flexible and adaptive, allowing information and functionality to be shared among participants in the same way as apps on a smartphone. In October Polkadot announced that the token holders of DOT had finally passed Referendum 41 which will lead to the successful launch of the network parachain leading to its next step in its journey.
Polkadot’s first-ever parachain auction is getting red hot with leading projects competing to claim the first slot. With the optimism fading around the asset after it touched its ATH there are signs of relief for DOT holders. With the parachain it is going to create great projects attracting more users as well as projects pushing the asset price higher. Even though the token is trading in red due to China’s announcement, the future looks bright for the one and only DOT.
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