A proof-of-stake cryptocurrency which aims to securely connect blockchains as a sort of decentralised internet.
Mission
Open-source protocol Polkadot allows the cross-chain transfer of any data or asset types, not just tokens, allowing for the creation of new applications, institutions and services on a private web regulated by its users.
It also allows for ‘parachains’ – parallel blockchains – with their own tokens. Unlike Ethereum’s ‘hosting’ of decentralised applications, developers can fold Polkadot’s existing security into blockchains on the platform, protecting fledgling projects from attack.
Use-cases
As a sharded multichain network, Polkadot can process many transactions on several chains in parallel, improving scalability.
Using the NPoS (nominated proof-of-stake) mechanism to select validators and nominators with a reputation to uphold helps to keep the system secure.
This enables chains to interact securely under the same rules but remain independently governed.
Founders
Swiss-based Web3 Foundation founded Polkadot as an open-source project to develop a decentralised web.
Former Microsoft research scientist Gavin Wood, a Briton, is the Foundation president and was a co-founder of Ethereum.
Robert Habermeier is a blockchain and cryptography researcher and developer while Peter Czaban, the Foundation’s technology director, has experience across highly specialised FinTech industries.
Economics
A billion DOT tokens are currently allocated. The initial supply was 10 million but in late 2020 the network underwent a redenomination to avoid the use of small decimals in calculations.
All balances were increased by a factor of one hundred, which did not impact holders’ proportional share in the token.