Buy Polkadot

Polkadot (DOT) is a blockchain platform designed to connect many different blockchains so they can work together, and DOT is the cryptocurrency that powers it. It is often described as a network that lets separate blockchains share information and security.

It helps to separate two names that are sometimes confused. Polkadot is the network and project, while DOT is the cryptocurrency used on it. People often use the names interchangeably, but you buy and hold DOT, while Polkadot is the underlying network.

Polkadot is built around a central chain called the Relay Chain, which provides shared security, and a series of connected blockchains called parachains. This design is intended to solve a common problem in crypto, where blockchains struggle to communicate with one another. Polkadot was created with the wider goal of supporting Web3, a more open and connected version of the internet.

What is Polkadot used for?

Polkadot is mainly used to connect blockchains and to secure and govern its network. DOT is the asset used to take part in securing the network, voting on its future, and supporting the blockchains built on it.

DOT is used to:

• stake and help secure the network, with the chance to earn rewards
• take part in governance and vote on proposed changes
• support parachains, the connected blockchains that run on Polkadot

Polkadot runs on a Proof-of-Stake system. Instead of mining, holders can stake their DOT to help validate transactions and secure the network. This approach is designed to be energy-efficient and to let many blockchains share the same underlying security.

Unlike Bitcoin, Polkadot does not have a fixed maximum supply. New DOT is created over time, mainly to reward staking and support the network, which means the total supply can grow gradually rather than being capped.

The history of Polkadot

Polkadot was created by Gavin Wood, a co-founder of Ethereum who also helped develop some of its core technology. He set out the idea in a white paper in 2016, and the main Polkadot network launched in May 2020 after several years of research and testing.

The project is supported by the Web3 Foundation, a Swiss organisation, along with development company Parity Technologies. Polkadot also has a closely related sister network called Kusama, which is often used to test new features. You can find out more on the official Polkadot website.

Since launching, Polkadot has grown into one of the larger blockchain platforms in the world, particularly associated with interoperability, the idea of different blockchains working together. People buy DOT for many reasons, including staking, taking part in governance, or gaining exposure to the Polkadot ecosystem.