It is a highly ambitious initiative that seeks to establish an alternative Ethereum-like network. The objective of Polkadot is to create the most advanced peer-to-peer network for n number of Blockchain in the near future, which will serve as the foundation for a decentralized Web3 network. Basically, Polkadot acts as a protocol that links various blockchain networks together into one unified system. With the aim of creating a decentralized Web3 network for blockchain, Web3 Foundation created PolkaDot.
Polkadot was first announced in 2017, and after its ICO, it was expected to launch early. The Polkadot network is made up of many parallel chains, allowing for thousands of transactions on each chain. As a result of this partnership with a new blockchain project, the multichain network will be able to address scalability issues while also enhancing future growth on the project by establishing a link with an additional blockchain project.
Team Polkadot wanted a fully decentralized network with users in charge of governance. Team may, however, modify and incorporate community suggestions on the platform, requiring users to possess DOT tokens. On the platform, DOT is a utility token that allows various roles on the site, such as voting rights, staking and bonding. However, DOT is not an ERC-20 Token because it is based on Polkadot’s main blockchain that benefits the whole network.
Polkadot Price Analysis
On the other hand, Polkadot recently completed its denomination day, where the value of the DOT token remained constant but production was cut by a factor of 100. this choice was made through token governance voting with all stakeholders participating. Following day of Denomination, Polkadot climbed dramatically, reaching a price of $395 USD at the time. Since DOT’s debut in July 2019, when it traded for $159 per unit, it has been trading in a sideways trend with an average price of $130 US. The price of Polkadot decreased gradually until its record high in late December 2018. Since then, the value has fluctuated significantly as evident by the graph. Now, in case it continues to grow in popularity, Polkadot will be closer to $500 USD.
Is it now time to buy Polkadot? Yes, the project appears to be strong, and future integration will bring a positive trend. Is Polkadot a Good Investment? Yes, long-term growth will be excellent with staking.
In 2020, Polkadot’s integration will have a significant impact on the blockchain market, where it has been used as a user attraction for several months since January. However, Aragon co-founder Luis Cuende wanted to integrate with Polkadot and could increase the scale of their network in order to launch their still pending project. In other words, the popularity of Web3 Foundation’s main initiative is increasing, which will make it one of the most interoperable and scalable projects in blockchain. The network will be recognized for providing simplicity, connectivity for information exchange, and connectivity with various other blockchain initiatives.