Virtual Currency Polkadot

Features of Polkadot
As mentioned at the beginning, Polkadot is a protocol that connects different blockchains.

With the Polkadot protocol, you can send and receive data and value between different blockchains, such as Bitcoin and Ethereum, without going through an exchange.

Here, let’s take a look at the following features of Polkadot in order.You You can connect different blockchains
Robust security
Solving scalability issues

You can connect different blockchains
The biggest feature of Polkadot is that different blockchains can be connected to each other.

At present, Bitcoin and Ethereum are different networks, so they are not connected. The wallet is also different. Bridge Smart Contract Development Services But with Polkadot, you’ll be able to connect them in the future.

For example, before the Internet, each network existed independently. It was an era when university networks, research institute networks, and hospital networks were not connected independently.

However, by connecting to the Internet, each network can be connected.

Similarly, Polkadot will be able to communicate with each other on blockchains such as Ethereum and Solana, which currently exist independently.

Polkadot’s technology for connecting different blockchains is called “interoperability” in technical terms.

Robust security
The second feature of Polkadot is that it has robust security.

First, I will explain how Polkadot works.

Polkadot consists of two chains, a relay chain and a parachain.

The relay chain “Relay” is a familiar “relay” in Japanese. A relay is a relay that delivers and delivers batons. Relay chains relay different block chains.

The most important feature of relay chains is that they are highly decentralized and have strong security.

Parachain refers to the blockchain that connects to the relay chain. Para in the name is an abbreviation for parallel. As the name suggests, they exist side by side in a circle around the relay chain.

Unlike large blockchains such as Ethereum, most blockchains that are parachains are small ones.

In that case, a security issue emerges as a concern, but when connecting to the relay chain, Parachain imports the security of the original relay chain.

As a result, Cross chain bridge development the parachain will be protected by strong security.

This is because the security of Polkadot’s relay chain can be shared with the connected parachain.

Solving scalability issues
The third feature is that Polkadot does not have scalability problems.

Scalability issues refer to delays in transaction processing and high fees when transaction volumes are high.

Why doesn’t Polkadot have that scalability problem?

The reason is that multiple parachains carry out transactions in parallel.

Compared to the mechanism of processing transactions one by one, the method of multiple parallel processing can be said to be epoch-making.

Polkadot / DOT Charts / Price Trends

Price movements up to 2021
Polkadot was listed in August 2020. After that, it has been changing from 400 yen to 500 yen until 2021.

From the beginning of 2021, rapid growth will start and the market will rise.

This may be due to Binance supporting Polkadot (DOT) and establishing a $ 10 million Polkadot Ecological Fund.

It peaked in May and rose to about 4,600 yen, but dropped sharply shortly thereafter. This may be due to the announcement of China’s cryptocurrency ban in late May.

It hit a bottom in July 2021, but prices have been rising little by little since then. The trigger was the raising of an estimated $ 43 million (4.5 billion yen) in Polkadot’s second private sale (an event to sell coins cheaply).

In November 2021, there was a timing when it exceeded 6,000 yen. The reason is said to be that the Polkadot parachain auction was held.

By this time, Bitcoin futures ETFs were approved in the United States, and Bitcoin became legal tender in El Salvador, Build a cross chain bridge which contributed to the rise in the entire cryptocurrency market.

After that, it will continue to decline due to the downtrend of the entire cryptocurrency market. It is possible that the stock market plunged due to the outbreak of Omicron stocks at the end of November 2021 and monetary policy in the United States, which also affected the cryptocurrency market.

Price movements since the beginning of 2022
Since the beginning of 2022, Russia’s military invasion of Ukraine in February and the plunge of Terra (TLUNA) in May have made the entire cryptocurrency market a tough winter era.

The price of Polkadot is also declining due to the influence.

Hard to sell because you can stake
You can do staking at Polkadot.

Staking is a mechanism to deposit virtual currency and receive interest.

Polkadot staking is a mechanism that allows you to get rewards and further increase DOT by locking and depositing DOT.

It is attractive to be able to steak in various places such as Polkadot official staking site and Binance.

As more people stake, Polkadot will be held for a long time, avoiding the risk of a sudden sale one day and a crash.

Polkadot’s stability is guaranteed because the project includes staking.

With the implementation of XCM, it became possible to exchange parachains with each other.
Polkadot underwent a groundbreaking update on May 4, 2022.

The communication protocol XCM (Cross Chain Message) was introduced into the Polkadot network.

Once XCM is implemented, it will be possible to exchange tokens and NFTs between parachains connected to Polkadot.

With the XCM update, prices went up from May 4th to 5th.

After that, Polkadot also fell sharply due to the impact of Terra’s crash, but the cause was that it was affected. Polkadot itself will still have technical potential.

Closely related to the future of Web3
Since the operating organization of Polkadot is the Web3 Fundation, it is highly likely that it will show its true value in proportion to the spread of Web3.

This is because, in order to realize Web3, the demand for connecting different blockchains as one network is expected to increase.

Polkadot’s parachain has 100 slots called slots, which will eventually be filled by para-auctions.

In addition, with the above-mentioned XCM update, blockchains connected to parachains can also interact with each other.

As I mentioned at the beginning about interoperability, people’s expectations for the ability to interconnect different blockchains and exchange data and value will be even greater in the future.