Buy Polkadot in Australia on CoinJar

Polkadot’s primary mission is to help multiple separate seemingly incompatible blockchains all work together like they are compatible. Traditional blockchains operate pretty much all alone, limiting their ability to communicate and share data.

Polkadot changes the game by connecting these blockchains — like a digital highway where information flows freely between different projects.

The DOT token or cryptocurrency is used in the Polkadot ecosystem.

The relay chain and parachains

Polkadot’s architecture revolves around the Relay Chain. Around it orbit various parachains — individual blockchains with specific uses. These parachains can specialise in anything from decentralised finance (DeFi) to gaming or identity management.

Because Polkadot doesn’t have apps on it, it’s called a zero layer, because it is a foundation layer. But the parachains around it do have dApps (apps made on a blockchain rather than the internet). Here are some really cool parachains to look into.

Imagine Polkadot as a bustling city with different districts, each serving a unique purpose. The Relay Chain ensures seamless communication between these districts.

Substrate

Developers can create their own parachains using the Substrate framework. It’s like building with Lego blocks — assemble your unique blockchain, connect it to Polkadot, and benefit from the network’s security and interoperability.

This flexibility encourages innovation and rapid development.

DOT Token

Polkadot (DOT) was launched through its initial coin offering (ICO) in October 2017.

During the ICO, the initial price of Polkadot was US$0.29, and a total of 2.24 million tokens were offered. Since then, Polkadot has evolved significantly, and its price has experienced wild fluctuations. At its all-time high price, it was trading at US$55, in October of 2021, however at the time of writing the price of DOT was US$7.70.

The native DOT token serves several purposes. It can just be a speculative investment. People buy the token at what they think is a low price, and sell when they think it won’t go much higher. (Or they buy it at the top of the market and end up having to sell after the price drops!)

Other uses of DOT

Governance: DOT holders participate in decision-making, shaping Polkadot’s future.

Staking: Lock up DOT to secure the network and earn rewards.

Bonding: Parachains use DOT as collateral to secure a slot on the Relay Chain.

Owning DOT means being an active participant in the Polkadot ecosystem.

Buy Polkadot: In Summary

Polkadot (DOT) isn’t just another cryptocurrency. It’s a multichain network designed to address scalability and interoperability issues faced by traditional blockchains.

Polkadot was founded by the Web3 Foundation.

This open-source project brought together some of the brightest minds in the blockchain industry. Their goal? To create a platform that enables seamless interaction between different blockchains.