Crypto Corner: a profile on DOT

We’ve welcomed new token after new token to Wirex over the past few months. And one of those was Polkadot (DOT).

So, what do you know about DOT? If you’re not familiar with it yet, read on to learn more!

What’s it all about?

DOT provides governance for the Polkadot network, a protocol designed to connect blockchains. Doing so enables cross-blockchain transfers of any data or asset, creating an interconnected “internet of blockchains”.

Polkadot supports two types of blockchains: a main network on which transactions are permanent, called a relay chain, and user-created networks, known as parachains. Parachains are created and attached to the relay chain, so they benefit from the same level of security and accuracy and use only the computing resources required to run the main chain.

This design allows any number of users to customise a blockchain for any use and do so in a more private and efficient way.

Unlike most blockchains that only allow internal communication, apps built on Polkadot can communicate with external networks. This is because the protocol supports “bridges” that allow apps and chains to talk to external networks like Bitcoin and Ethereum.

What can you do with DOT?

DOT serves three purposes within the Polkadot network: governance, staking and bonding.

Holders of DOT have complete control over the protocol and are responsible for determining network fees, scheduling the addition of parachains and managing upgrades and fixes to the platform.

DOT holders also facilitate the consensus mechanism that underpins Polkadot by putting their DOT at risk - aka staking or bonding.

Of course, you can also buy, HODL, exchange and spend DOT just like any other currency with the Wirex app and card.

Who came up with the idea?

Polkadot was founded in 2016 by Ethereum co-founder Gavin Wood, Peter Czaban and Robert Habermeier. It officially launched it 2020 after three years of development.

Wood notably invented Solidity, a programming language used for writing smart contracts, and coined the term Web 3.0.

DOT’s first token sale closed in October 2017, having raised 485,331 ETH.

Any fun facts?

Polkadot has a “canary in the coal mine” or “canary network” called Kusama, which is a virtual copy of Polkadot and functions as its test environment. The Polkadot team use Kusama to test the efficiency of their code, apps and projects before they officially launch. Pretty wise, if you ask us!