Polkadot, also known as DOT is the native cryptocurrency of the Polkadot network. The Polkadot network initially started development in 2017 and is co-founded by one of the founders of Ethereum, Gavin Wood. Wood is a prominent individual in the crypto development space as he invented Solidity, the programming language required to create D’apps on the Ethereum network. After a 3-year development phase, the network and token officially launched in May 2020.
Polkadot is designed in a way to operate two types of blockchains. A main network, called a relay chain, where transactions are permanent, and user-created networks, called parachains. It also has a connecting layer, or “bridge,” that allows value and data to be transferred between most blockchains.
DOT’s Key features:
The DOT governance consists of Council Members & a Technical Committee. The Council Members comprise of elected DOT holders, who are responsible for proposing changes and determining which changes proposed by DOT holders are made to the software. Proposals by Council members require less votes to be approved than those by ordinary DOT holders.
The Techincal Comittee consists of teams actively building Polkadot, this group can make special proposals in the event of an emergency. Members of the technical committee are voted in by Council members.
DOT is used to facilitate the consensus mechanism that underpins Polkadot. In order for the platform to function and allow for valid transactions to be carried out across parachains, Polkadot will rely on DOT holders to play active roles. Some active roles for DOT holders are Validator, Collator, Nominator or Fisherman.
On the Polkadot network to create new parachains DOT tokens are bonded. Outdated or non-useful parachains are removed by removing bonded tokens which is a form of Proof of Stake. Additionally, the bonded DOTs will be locked during their bonding period and will be released back to the account that bonded them after the duration of the bond has elapsed and the parachain is removed.
In addition to offering Polkadot (DOT) for trading on various cryptocurrency exchanges, including DIFX, they also provide a comprehensive guide on how to buy DOT for interested users. On DIFX, DOT is available as an DOT/USDT pair, enabling users to conveniently trade the cryptocurrency.
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