When its developers finally unleashed it on the market on August 20 after multiple delays, Polkadot (DOT) sparked a frenzy of excitement among investors, soaring from $2.82 to a high of $6.82 on September 1. At the time of writing it was $5.32, creeping back up from a low of $4.75 after Thursday’s market crash.

The protocol has even knocked rising star Chainlink, the much-vaunted “Ethereum killer,” out of fifth place on CoinMarketCap, a highly respectable position for a crypto that was largely unknown outside the nerdosphere until quite recently. Only two assets now stand between Polkadot and Ethereum, a tenacious occupant of the number two position – XRP and Tether.

What is Polkadot?

An open-source project founded by the Web3 Foundation, Polkadot is a sharded protocol that enables blockchain networks to operate in synergy. The DOT token serves three distinct purposes: governance over the network, staking and bonding.

One feature that sets it apart from the “Ethereum killers” – projects like Cardano (ADA) and Chainlink (LINK) – is that it is designed to coexist with the leading smart contracts blockchain protocol rather than compete against it. In the eyes of some investors, this relationship may make it more appealing because knocking Ethereum, which is already a widely utilized working product, off its pedestal could be a Herculean challenge, even for a technically superior project.

Like Ethereum, Polkadot has an active ecosystem. It is already home to 197 projects, according to data from PolkaProject, and that number is expected to steadily grow.

(Excerpt) Read more Here | 2020-09-05 01:01:00
Image credit: source

LEAVE A REPLY

Please enter your comment!
Please enter your name here