This work has offered useful insights in understanding the Polkadot ecosystem and future of this project.
The interactive nature of the Polkadot ecosystem has attracted many new projects to its blockchain. Many developers have today given recourse to the Polkadot blockchain to enable them to build up their seemingly incompatible Crypto project. With the increasing number of projects built on the Polkadot network today, investors are all the more desirous to learn how to buy DOT and what the future holds for this coin.
What is Polkadot?
Polkadot is an important blockchain technology designed to connect various blockchains including hitherto inoperable networks. Polkadot has a parachain technology that facilities multiple network connections unifying them into one network. Each chain connected to the Polkadot network is designed with a uniform parity module which enables the developers to choose their preferred layer to match their applications. The Polkadot Blockchain uses a proof of stake system which makes it very scalable and easy to use. The Polkadot ecosystem has its utility token known as DOT which is used for both staking and governance amongst the community.
History of Polkadot
Polkadot was launched in Oct 2017 following its pre-launch sale. The coin was founded by Dr. Gavin Wood, who happens to be one of the co-founders of Ethereum. Dr. Gavin released the white paper for Polkadot earlier in October 2016 but proceeded to create the Web 3 foundation for this coin alongside Peter Czaban a year after. After the initial presale, the developers kept working on the project, it was not until May 27, 2020 that its first mainnet was launched. The coin has gained wide acceptance since then up till the present moment.
What is the use case of Polkadot?
- Blockchain Bonding: Polkadot is a multi-chain blockchain network used in connecting various blockchains.
- Scalability: It is very scalable for executing multiple projects.
- Means of Payment: Its native token known as Dot, is used as a medium for payment among crypto users.
- Staking: Polkadot allows users to store their coin holdings through staking and earn rewards.
Understanding the Polkadot ecosystem
The Polkadot ecosystem has been designed as a decentralized blockchain protocol for running smart contracts while concealing the data of its users. It has been built on the Web 3 application to ensure more privacy for its users. Its parachain module enables users to easily interact with each other and to establish multiple projects.
Price history of Polkadot since its creation
Polkadot has witnessed a rapid price increase from its creation till the present moment. The coin has recorded over 6500% ROI from its presale price of $0.29 in October 2017 till its all-time high at $55.00 reached on November 4, 2021.
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The price has depreciated so much to return below $10 in 2022. The price of this coin just like every other cryptocurrency has been so much affected by the bearish season that befell the Crypto market this year.
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Does the future look bright for Polkadot?
Polkadot is the 10th most valuable Cryptocurrency today with a market capitalization of $10.4 billion. The demand for this coin has increased significantly in recent times based on its important use case.
Many experts believe that the future for this coin is very promising, especially having a price below $10 which will likely create more demand for the coin as the year runs out.
Some analysts believe that this coin will end the year above $20. While others see this coin as revisiting its all-time high of $55.00 in 2024.
Is the Polkadot a good investment package?
Polkadot has attracted large investors to its project from its creation till the present moment. This is based on the strong project the Blockchain seeks to fulfill, especially linking other hitherto incompatible networks together.
The expertise of its developers, especially that of its founder Dr. Gavin who is equally one of the co-founders of Ethereum, has given investors greater confidence that this coin will likely overtake Ethereum in the future based on its scalability and speed in carrying out transactions.
Nonetheless, all crypto investment involves risk. It is therefore very important for investors to manage their risk properly while indulging in any crypto investment.