Polkadot (DOT) is a next-generation blockchain protocol designed to connect multiple specialized blockchains into a single network. The project was founded by Dr. Gavin Wood, who was also a co-founder of Ethereum.
The main goal of Polkadot is to create a more scalable, interoperable, and secure blockchain network that can support a wide range of applications and use cases. To achieve this, Polkadot uses a unique multi-chain architecture that allows for parallel processing of transactions and smart contracts, as well as seamless communication between different blockchains.
Polkadot’s native token, DOT, plays a vital role in the network’s governance and security. DOT holders can participate in the decision-making process for network upgrades, as well as stake their tokens to help secure the network and earn rewards. Overall, Polkadot aims to create a more decentralized and democratic blockchain ecosystem that can support a wide range of decentralized applications and services.
Polkadot (DOT) can be stored securely in hardware wallets that support the DOT token. Here are some of the hardware wallets that are compatible with DOT:
Ledger Nano S and Nano X: Ledger Nano S and Nano X are popular hardware wallets that support a wide range of cryptocurrencies, including Polkadot. These wallets provide high-level security features, such as two-factor authentication and a secure chip to protect your private keys.
Trezor Model T: Trezor Model T is another popular hardware wallet that supports Polkadot. It features a touch screen display and provides advanced security features like passphrase protection and two-factor authentication.
KeepKey: KeepKey is a hardware wallet that supports Polkadot and other cryptocurrencies. It features a large display and advanced security features, including passphrase protection and PIN protection.
Ledger Blue: Ledger Blue is a premium hardware wallet that supports Polkadot and other cryptocurrencies. It features a large touch screen display and advanced security features, such as two-factor authentication and a secure chip to protect your private keys.
Remember to always buy hardware wallets directly from the manufacturer or authorized resellers to avoid scams and ensure that your device is genuine and safe to use.
The best option for storing any cryptocurrency would be to use a hardware wallet. These are pieces of hardware that store the private key to your coins offline.
Today, there are two leading hardware manufacturers to choose from – Ledger and TREZOR. Both companies have different models of hardware wallets that will get the job done.
If you want deeper insights on specific models, you can read my Ledger Nano X review or my TREZOR Model T review.
Polkadot (DOT) can also be stored in software wallets that support the DOT token. Here are some of the software wallets that are compatible with DOT:
Polkadot.js Wallet: Polkadot.js Wallet is the official software wallet for Polkadot. It is browser extension wallet that allows you to store, manage, and transfer DOT and other Polkadot-based tokens. The wallet is easy to use and provides advanced security features like passphrase protection and encrypted backups.
Exodus Wallet: Exodus is a popular multi-cryptocurrency software wallet that supports Polkadot and other cryptocurrencies. The wallet features a user-friendly interface and provides advanced security features like two-factor authentication and backup seed phrases.
Atomic Wallet: Atomic Wallet is another multi-cryptocurrency software wallet that supports Polkadot and other cryptocurrencies. The wallet provides a built-in exchange feature that allows you to trade DOT and other cryptocurrencies directly within the wallet. Atomic Wallet also features advanced security features like two-factor authentication and backup seed phrases.
Trust Wallet: Trust Wallet is a mobile wallet that supports Polkadot and other cryptocurrencies. The wallet is available for both iOS and Android devices and provides advanced security features like fingerprint authentication and backup seed phrases.
Remember to always download software wallets directly from the official website or app store to ensure that you are using a legitimate and safe wallet. It’s also important to keep your private keys and backup seed phrases safe and secure to prevent unauthorized access to your funds.
Hardware wallets cost money, so if you’re not sure how serious you are about cryptocurrencies and just want to get a taste of what they feel like, perhaps you would be better off starting with a software wallet.
A software wallet is a free program that lets you store your coins on your computer or mobile phone.
The easiest Polkadot coin software wallets to get started with are undoubtedly Exodus, AtomicWallet and Guarda . All wallets are very intuitive. Exodus, Atomic Wallet and Guarda is available on desktop for Windows, Mac and Linux, as well as on mobile for both iOS and Android. If you want more information you can read my Exodus, AtomicWallet and Guarda review.
Once you decide on an exchange, open an account and buy your Polkadot. Make sure to withdraw the Polkadot from the exchange to your personal wallet.
Never leave coins on an exchange, as you risk losing them all if that exchange gets hacked or shuts down (which has happened in the past) and always double check address before send coins because you can send the coins to wrong address .
Polkadot was founded by Dr. Gavin Wood, Robert Habermeier, and Peter Czaban. Dr. Gavin Wood is a co-founder of Ethereum and was previously the CTO of the Ethereum Foundation. Robert Habermeier is a former software engineer at Ethereum and has worked on several blockchain-related projects. Peter Czaban is a former quantitative researcher and trader who has worked in the finance industry for several years. Together, the founders of Polkadot have a strong background in blockchain technology and software engineering, and have created an innovative platform for building interoperable blockchains.
Polkadot is the flagship protocol of Web3 Foundation, a Swiss Foundation with a mission to facilitate an open-source, fully functional and user-friendly decentralized web.
Polkadot’s founders are Dr. Gavin Wood, Robert Habermeier and Peter Czaban.
Wood, Web3 Foundation’s president, is the most well-known of the trio thanks to his industry influence as Ethereum co-founder, Parity Technologies founder and the creator of the smart contract coding language Solidity. Wood is also credited with coining the term Web3.
Habermeier is a Thiel Fellow and accomplished blockchain and cryptography researcher and developer. Czaban is the former Technology Director at Web3 Foundation, with a wealth of experience across highly specialized fintech industries.
Polkadot is unique in several ways, including:
Interoperability: Polkadot is designed to enable interoperability between different blockchains. This means that different blockchains can communicate with each other and exchange information in a seamless and secure way.
Scalability: Polkadot is designed to be highly scalable, allowing it to handle a large number of transactions without slowing down or compromising security.
Governance: Polkadot has a unique governance structure that allows token holders to vote on proposals and make decisions about the future of the network. This makes Polkadot a truly decentralized platform that is governed by its community.
Substrate: Polkadot is built using Substrate, a modular framework that allows developers to easily build custom blockchains and applications on top of the Polkadot network. This makes it easy for developers to create new projects and experiment with new blockchain-based solutions.
Security: Polkadot is designed to be highly secure, with several layers of security built into the platform. This includes a proof-of-stake consensus mechanism, a robust network of validators, and advanced security features like sharding and parachains.
Overall, Polkadot’s unique combination of interoperability, scalability, governance, and security makes it a powerful platform for building the next generation of blockchain-based applications and services.
Announced in June 2022, the protocol is set to overhaul the existing framework so that the network will become more entrenched in the decentralization ethos. The team argued that the current governance system has elements of centralization. For example, the Polkadot Council, a body of executives, had sole control over some decision-making processes, including how the network’s treasury is spent.
To this end, the new development is replacing the existing governance infrastructure with a framework in the form of a “referendum.” In other words, the planned upgrade will introduce a voting system allowing anyone to submit proposals and have them approved.
Called Governorship version 2 or Gov2, this upgrade allegedly eliminates all forms of preferential first-class citizenry like the Technical Committee and the Polkadot Council.
With this, the protocol aims to reduce the concentration of voting power by replacing the Technical Committee with the Polkadot Fellowship, designed to accommodate up to tens of thousands of members and feature a lower barrier for entry. The members are ranked to showcase the degree the protocol expects each participant to make informed decisions and support proposals that are in the best interest of the network.
Another core component of the upgrade is the Origins and Tracks system. This mechanism will help grade the importance of a proposal and determine the appropriate way to treat them. As such, the network can implement suitable safeguards to ensure that the decision-making process is decentralized and fair. For instance, proposals tagged as Root Origins are the most sensitive. Such proposals undergo longer and more scrutinized consideration periods, with a higher approval threshold. Also, the system ensures that only one hypersensitive proposal can be deliberated on at a time.
On the other hand, proposals with less sensitive Origins have shorter consideration periods with a lower approval threshold. Put simply, the grade of the importance of proposals will determine the type of safeguards assigned to them and the length of the decision-making process they undergo.
Gov2 will first be tested on Kusama, an experimental development environment for testing applications, before it goes live on Polkadot. Once the testing and audit phase is complete, the team will submit the proposal to launch Gov2 on the Polkadot network.
According to the Polkadot whitepaper, the maximum supply of Polkadot (DOT) tokens is capped at 1 billion. However, the circulating supply of DOT tokens is determined by the number of tokens that have been released into circulation through the network’s staking and governance mechanisms.
As of February 2023, the circulating supply of DOT is around 1.05 billion tokens. However, this number is subject to change as tokens are continually being minted and burned as part of the network’s staking and governance processes.
It’s important to note that the total supply of DOT tokens will never exceed 1 billion due to the network’s design and inflation model. This means that as more tokens are staked or used for governance purposes, the total supply of tokens in circulation may decrease over time, which could potentially increase the value of individual DOT tokens.
The Polkadot network is secured through a combination of several advanced security features, including:
Proof-of-Stake (PoS) Consensus Mechanism: Polkadot uses a proof-of-stake consensus mechanism, which is a more energy-efficient alternative to the proof-of-work consensus mechanism used by many other blockchain platforms. PoS allows token holders to participate in the network’s consensus process by staking their tokens and earning rewards for helping to secure the network.
Validators: Polkadot relies on a network of validators to confirm transactions and maintain the integrity of the blockchain. Validators are responsible for verifying transactions and creating new blocks, and they are rewarded for their efforts in maintaining the network.
Advanced Security Features: Polkadot has several advanced security features, including sharding and parachains, which help to improve the scalability and security of the network. Sharding involves splitting the network into smaller shards or partitions, which allows for greater scalability and faster transaction processing. Parachains are specialized blockchains that can connect to the Polkadot network and leverage its security and scalability features.
Council and Referendum: Polkadot has a unique governance structure that allows token holders to vote on proposals and make decisions about the future of the network. The network is governed by a council of elected representatives, who are responsible for making decisions about the network’s development and direction. Token holders can also participate in referendums to vote on specific proposals or changes to the network.
Overall, the combination of these advanced security features helps to ensure that the Polkadot network is highly secure, scalable, and resilient to attacks. This makes it a reliable platform for building decentralized applications and services that can be used by people and organizations around the world.