Beginners Guide To Polkadaot In Plain English

Polkadot connects blockchains.

Blockchains don’t play well with each other. The Bitcoin blockchain cannot interoperate with the Cardano blockchain. They can’t exchange data.

Why might this be a necessary?

Perhaps an app running on Etherium might need to exchange information with a Bitcoin blockchain. Polkadot steps in between the Etherium and Bitcoin environments and facilitates that exchange.

It’s an intermediary.

Polkadot uses the DOT token.

 How do you buy DOT tokens? 

You can do so on the following exchanges:

What Is Polkadot?

DOT is cryptocurrency that powers the Polkadot network. A cryptocurrency is a digital currency secured by cryptography.

DOT isn’t a coin. It isn’t a note or a bar of metal. DOT takes the form of a number and it resides in computers. You can send it to someone else just as easily as you send an email.

Polkadot is a project by Web3 Foundation. They plan to develop a decentralized web.

Our passion is delivering Web 3.0, a decentralized and fair internet where users control their own data, identity and destiny.

Why does it have value?

DOT has value because people choose to give it value. That’s also true of art, precious metals and currency. It can be worth a lot or a little, depending on the value people choose to give it.

What makes DOT different from currency?

The main concept to understand is that DOT is decentralized.

This means that DOT transactions don’t require a third party to validate a financial transaction. Any two people, anywhere in the world, can send DOT to each other without the involvement of a bank, government, or other financial institution.

Many people like the idea of having control of their own money, rather than letting banks control it.

How can DOT eliminate third party verification?

Every transaction involving DOT is tracked on a blockchain.

A blockchain is simply a ledger. Blockchains are historical records of every transaction ever made using Polkadot. Polkadot goes one step further. It uses a series of bridges and other connectors to enable on blockchain to talk to another.

Why is DOT attractive as an investment?

At this point, XRP is a highly speculative investment class. Investors should consult an investment advisor before making investments decision and risk no more than they can afford to lose.

Further Reading: