Polkadot is a very trendy digital coin that comes up every time you google “what cryptos to invest in”. A new Swiss-born altcoin everyone loved, Polkadot (DOT), also referred to as “blockchain of blockchains” got the reputation of an Ethereum killer.
Yet little known Polkadot, has gained a lot of attention recently, having jumped from $9.14 on January 1, 2021 to $40.77 on February 20, 2021. At the moment of writing DOT was trading at $38.75, which is still a 323.9 per cent increase since the beginning of the year.
DOT/USD
Developed in 2016, Polkadot is designed to build a forum that allows different blockchains to engage with each other. The main idea behind Polkadot is to create a completely decentralised Internet 3.0.
With the ambition to become the major platform for smart contracts, the project is noteworthy due to its interoperability, meaning it can be used with other tokens and cryptocurrencies, and it can be upgraded without forks.
What makes Polkadot so popular and positions it as a major rival to Ethereum? If we imagine that Ethereum is a highway, then programmes created on it have to pay a GAS price as a traffic charge. Continuing the analogy, Polkadot represents multiple highways, where each can serve a particular purpose for particular application.
Polkadot: a blockchain for blockchains
According to Derek Yoo, CEO of PureStake: “Most of the people using Polkadot are developers. They are building new blockchains or new decentralised applications and finding ways to link existing chains to Polkadot’s new way of doing things”. If developers are enthusiastic about it, so are traders.
Source Link