Profiling Polkadot
Scott Keisler
Altcoins
3 years ago
1 QCP
Emerald Crypto | February 22, 2021
Polkadot (DOT) is an Altcoin that is still flying a bit under the radar but this digital asset may very well be worth keeping an eye on.
The project was founded by Ethereum co-founder Gavin Wood in 2017 and funded by the Swiss-based Web3 Foundation. Web 3.0 is a venture seeking to build a decentralized, open-sourced and fair internet where users control their own data, identity and destiny.
What makes Polkadot unique compared to other blockchains like Bitcoin and Ethereum? In a word it's interoperability.
But what does that mean? One of the driving characteristics of blockchain is decentralization. Transactions are performed not by a centralized database operating on a centralized server but by a network of computers around the world working together to piece together and finalize a particular process.
There are many benefits to this collaborative approach (which will be outlined in a future article) but one problem that has arisen is that there are lots different blockchains that cannot interact with each other in any kind of a meaningful way.
Interoperability makes it possible for such blockchains to do just that. As Kenneth Rapoza of Forbes puts it, Polkadot serves as a protocol for protocols or a blockchain for blockchains.
DOT also allows users to create their own blockchains that can then interoperate with other blockchains - and not just tokens but a variety of digital assets.
Another upside of Polkadot is that it is scalable. As mentioned last week, Ethereum is having trouble with bottlenecks (due to demand) and thus increasing transaction fees. Polkadot has the ability to adapt to growing demand by allowing a greater supply (scalability). Thus DOT could offer a solution to an existing problem.
Polkadot began the year at $8.88 and as of this writing is currently trading at $38.85, an increase of over 337 percent. Currently DOT sits at a market capitalization of $35B, which ranks fourth among all cryptocurrencies. This is crazy to think as DOT Founder Gavin Wood still describes the project as a work in progress.
Analysts and investors are definitely starting to see the opportunity and potential though. According to Coindesk beginning on February 4th,
"Goldman Sachs, ICAP, JPMorgan, and UBS have bought the first exchange-traded product (ETP) that offers exposure to Polkadot’s DOT cryptocurrency for clients."
Author Tanzeel Akhtar points out that these entities are not investing in DOT itself but rather in a security that tracks its performance. It is still a major development nonetheless when big boys like these are taking notice of one's project.
DOT is definitely a cryptocurrency to watch out for.
(Emerald Crypto always encourages readers to do their own research and come to their own conclusions.)
Originally published here:
https://emeraldcrypto.news/f/profiling-polkadot
Polkadot (DOT) is an Altcoin that is still flying a bit under the radar but this digital asset may very well be worth keeping an eye on.
The project was founded by Ethereum co-founder Gavin Wood in 2017 and funded by the Swiss-based Web3 Foundation. Web 3.0 is a venture seeking to build a decentralized, open-sourced and fair internet where users control their own data, identity and destiny.
What makes Polkadot unique compared to other blockchains like Bitcoin and Ethereum? In a word it's interoperability.
But what does that mean? One of the driving characteristics of blockchain is decentralization. Transactions are performed not by a centralized database operating on a centralized server but by a network of computers around the world working together to piece together and finalize a particular process.
There are many benefits to this collaborative approach (which will be outlined in a future article) but one problem that has arisen is that there are lots different blockchains that cannot interact with each other in any kind of a meaningful way.
Interoperability makes it possible for such blockchains to do just that. As Kenneth Rapoza of Forbes puts it, Polkadot serves as a protocol for protocols or a blockchain for blockchains.
DOT also allows users to create their own blockchains that can then interoperate with other blockchains - and not just tokens but a variety of digital assets.
Another upside of Polkadot is that it is scalable. As mentioned last week, Ethereum is having trouble with bottlenecks (due to demand) and thus increasing transaction fees. Polkadot has the ability to adapt to growing demand by allowing a greater supply (scalability). Thus DOT could offer a solution to an existing problem.
Polkadot began the year at $8.88 and as of this writing is currently trading at $38.85, an increase of over 337 percent. Currently DOT sits at a market capitalization of $35B, which ranks fourth among all cryptocurrencies. This is crazy to think as DOT Founder Gavin Wood still describes the project as a work in progress.
Analysts and investors are definitely starting to see the opportunity and potential though. According to Coindesk beginning on February 4th,
"Goldman Sachs, ICAP, JPMorgan, and UBS have bought the first exchange-traded product (ETP) that offers exposure to Polkadot’s DOT cryptocurrency for clients."
Author Tanzeel Akhtar points out that these entities are not investing in DOT itself but rather in a security that tracks its performance. It is still a major development nonetheless when big boys like these are taking notice of one's project.
DOT is definitely a cryptocurrency to watch out for.
(Emerald Crypto always encourages readers to do their own research and come to their own conclusions.)
Originally published here:
https://emeraldcrypto.news/f/profiling-polkadot
- Altcoins
- Polkadot
- DOT
- Cryptocurrency
- Gavin Wood
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