The fact that blockchains aren’t always interoperable is one of cryptocurrency’s limitations. You can’t send Dogecoin to a Bitcoin address, and you can’t send Bitcoin to an Ethereum address. Polkadot (DOT) is a project that tries to overcome this problem by using technology that can connect several blockchain networks.
Polkadot may be used to move data, programs, and coins between different blockchains. Its purpose is to decentralize the web and make it easy to move goods between chains. And according to Sfetrading’s Polkadot price prediction, the digital asset price might potentially exceed $50 in 2021. So, it’s a promising startup to kick off your crypto journey.
Polkadot Features and Process in Detail
Polkadot is a new cryptocurrency that is swiftly gaining traction. Bitcoin is the most popular crypto and is unlikely to be substituted anytime soon. On the other hand, Polkadot is gaining traction and posing a threat to other well-known cryptocurrencies such as Ethereum.
As for the special characteristics, this cryptocurrency is built up as a blockchain. It’s a type of data storage that functions similarly to a database. Blockchain technology is used for data storage with the following features:
- Permanent timeline creation without removing data.
- No one can hack it since its records can’t be edited.
- Anyone can trace changes since it’s transparent and accessible.
- Decentralized currency is not under the control of a single bank or institution.
Polkadot and its currency DOT provide unrivaled interoperability to blockchain enterprises worldwide. This way, you see that Polkadot is a one-of-a-kind cryptocurrency that has swiftly garnered interest. It employs cutting-edge technologies to decentralize the blockchain further and enable the creation of other chains.
A financial network is a centralized system in which a central bank supervises the banks farther down the network. Simultaneously, blockchains are decentralized – there’s no centralized monitoring. Furthermore, banks are heavily controlled by the government. On the other hand, blockchain is uncontrolled primarily, for the time being, making it subject to abuse by criminals who use it for fraud transfers.
The centralized networks of banks make them more vulnerable to hacking than blockchains, yet your money is ordinarily safe at a bank. That’s because the Electronic Fund Transfer Act holds banks liable for losses resulting from fraudulent transactions. Your crypto wallet lacks such safeguards, and because transfers are private and unchangeable, it’s doubtful that you’d be able to retrieve your Bitcoin in case of fraud.
Is It Worth Buying Polkadot in 2022?
Polkadot is still in its early stage, but if you enjoy taking chances, your investment might pay off well in the long term. Furthermore, you must admit that Polkadot is gaining popularity with investors due to its interactive nature. Developers may connect existing blockchains to the Polkadot system or develop new blockchains. When investors see developers flocking to new technologies, their interest is piqued.
Polkadot is against some tough competition, including crypto behemoths like Cardano and Ethereum. All of these technologies strive to improve crypto’s efficiency by bringing individuals from all around the world together. They’re also concerned about the impact of cryptocurrency on the environment. At the same time, Polkadot has soared in the crypto ranks far faster than its opponents.
In May 2021, the cryptocurrency unveiled smart contract features, and it already supports many applications. Cardano and Ethereum, on the other hand, didn’t have the same level of early success. Developers may also design new chains with Polkadot. The decentralized networks like Ethereum and Cardano are limited since they rely on existing networks. Polkadot is gradually distinguishing itself in the market, despite strong competition.