{"id":418,"date":"2021-01-15T06:18:58","date_gmt":"2021-01-15T06:18:58","guid":{"rendered":"https:\/\/cryptonita.co\/?p=418"},"modified":"2021-01-26T13:17:31","modified_gmt":"2021-01-26T13:17:31","slug":"dot-flip-polkadot-overtakes-xrp-to-become-the-fourth-largest-cryptocurrency-2","status":"publish","type":"post","link":"https:\/\/cryptonita.co\/?p=418","title":{"rendered":"Polkadot now the 4th largest crypto. OK, what is it?"},"content":{"rendered":"
After posting a massive gain of 26% (in just 24 hours) <\/span>Polkadot’s DOT token<\/span><\/a> surpassed <\/span>Ripple\u2019s XRP.<\/span><\/a> As DOT rose from roughly $11 to an all-time high of $14.80, Polkadot became the fourth largest cryptocurrency project by market cap.<\/span><\/p>\n Polkadot<\/span><\/a> can be thought of as<\/span> an ecosystem of interoperable blockchains (called parachains). Parachains operate in parallel and transact with each other within a highly scalable framework. In other words, Polkadot is an internet of blockchains.<\/em><\/p>\n TLDR<\/span><\/strong><\/p>\n Parachains are individual blockchains. Here are some categories:<\/p>\n Currently hundreds of blockchains exist in isolated silos, with little ability to communicate with each other. Polkadot addresses this by providing transparent a framework for interoperability. It is designed to make it easy for older, current, and future <\/span>distributed ledger technologies (DLTs)<\/span><\/a>, to communicate.\u00a0<\/span><\/p>\n “A future of multiple blockchain networks is increasingly likely.\u00a0 Not one chain to rule them all, but a world of diversity where individual chains serve specific use cases and specifications.” Paul Kohlhaas<\/a><\/span><\/p>\n<\/blockquote>\n I recommend digging into the Polkadot whitepaper<\/a> to begin understanding this project before investing.\u00a0\u00a0<\/p>\n As mentioned, Polkadot encourages decentralized interoperability via \u201cparachains\u201d. Parachains can be public blockchains, private blockchains, or other sources of data. The data in the parachain is accessed via specialized nodes and sent to Polkadot. Parachains are then activated by staking DOT tokens, and removed from Polkadot by unstaking these same tokens.<\/p>\n The main chain of Polkadot supports smart contracts. It is secured by a type of DPoS (Delegated Proof of Stake), which Polkadot calls NPoS (Nominated Proof of Stake). The system is made up of nominators and validators: Nominators use their tokens to elect the validators, who in turn validate (mine) the new blocks. If a validator acts maliciously, he is punished along with the nominators who voted for him.<\/p>\n While I am personally excited about Polkadot’s mission, it remains to be seen whether or not it will live up to the hype.<\/p>\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" After posting a massive gain of 26% (in just 24 hours) Polkadot’s DOT token surpassed<\/p>\n","protected":false},"author":1,"featured_media":423,"comment_status":"open","ping_status":"open","sticky":true,"template":"","format":"image","meta":{"nf_dc_page":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[22],"tags":[20,19,17,18],"class_list":["post-418","post","type-post","status-publish","format-image","has-post-thumbnail","hentry","category-quick-take","tag-analysis","tag-news","tag-polkadot","tag-xrp","post_format-post-format-image"],"yoast_head":"\nOk, but what is Polkadot?<\/h4>\n
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What are parachains?<\/h4>\n
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What problems is this addressing?<\/span><\/h4>\n
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How does it do it?<\/h4>\n
Here are some quick takeaways:<\/h4>\n
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<\/a>Parachains and staking<\/h4>\n
Some initial considerations to keep in mind<\/h4>\n
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