- Polkadots are a common pattern (DOT)
Polkadot is a one-of-a-kind proof-of-stake cryptocurrency that aims to provide blockchain interoperability. Its protocol connects permissioned and permissionless blockchains and oracles, allowing systems to collaborate under one roof.
Polkadot’s central component is its relay chain, which enables network interoperability. It also allows for “parachains,” or parallel blockchains with their native tokens for unique use cases.
Rather than building only decentralized applications on Polkadot, developers can create their blockchain while still benefiting from the protection that Polkadot’s chain already provides. Developers can develop new blockchains with Ethereum, but they must implement their security measures, exposing new and smaller projects to attack. As the larger a blockchain is, the more secure it is. Polkadot refers to this term as “shared security.”
Gavin Wood, another of the Ethereum project’s core founders who had conflicting views on the project’s future, created Polkadot. Polkadot has a market capitalization of $1 billion as of January 2021. Polkadot has a market cap of $11.2 billion, and one DOT is currently trading for $12.54.