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What is Polkadot (DOT)? How to buy DOT?
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Polkadot offers significant innovation in the blockchain ecosystem and was designed to be a customizable, interoperable, and scalable network. The Polkadot network token is traded on exchanges using the DOT token and is accepted as a store of value and investment vehicle, and a trading instrument.The Polkadot network was developed by the Switzerland-based web3 Foundation and had an NPoS consensus structure. Polkadot has high network security and a three-layer structure, and different chains allow the blockchain to achieve the best performance and efficiency.
What is DOT coin (DOT)?
The best answer to the question of what Polkadot is can be given as a secure, fast, and scalable network that can host various blockchain projects like Ethereum. The Polkadot idea was developed by Gavin Wood, one of the founders of Ethereum, in 2016 with the goal of a decentralized internet. Polkadot contains parallel chain structures and provides bridges to other blockchains in the spirit of interoperability. The network's native token, DOT coin, manages transactions on the Polkadot network and for investment purposes. DOT coin, which cannot be generated through mining, is a cryptocurrency network characterized by its multi-chain structure.
When was the DOT coin released?
The Polkadot network token, DOT coin, was launched in August 2020. However, the DOT coin and the idea of a decentralized internet date back to earlier times. Ethereum co-founder Dr. Gavin Wood explained the details of the Polkadot network in a technical document he published in 2016. The Web3 Foundation, which was subsequently established, led the development process of the Polkadot network. The Polkadot protocol is based on the DOT coin, which cannot be mined. The network was developed as a scalable, innovative model beyond a secure blockchain. The Polkadot network is different from other blockchains because of its parachain structure.
Who is the founder of DOT coin?
Gavin Wood, the founder of Polkadot and the network's token, the DOT coin, is a British computer scientist. The inventor of the Solidity programming language, Gavin Wood, is also the Ethereum Virtual Machine (EVM) developer. Wood, one of the most important names in the cryptocurrency ecosystem, became one of the founders of Parity Technologies, which developed the infrastructure for Zcash and Polkadot after he left the Ethereum project. Wood, who worked at Microsoft for a time before the Ethereum project, is a graduate of York College. After founding the Swiss-based Web3 Foundation, Wood worked on developing the Polkadot network. In addition to Gavin Wood, Polkadot's founders include Robert Habermeier and Peter Czaban.
To which country does the DOT coin belong?
The Polkadot network was developed within the Swiss-based Web3 Foundation. The project's founder, Gavin Wood, is a UK-born software developer. Although the developer foundation of DOT coin is based in Switzerland, the Polkadot network has a structure that can be used worldwide, on which projects can be developed as a global blockchain. With its unique structure, the Polkadot protocol has an aspect that can be optimized for different blockchains. In terms of efficiency, scalability, and security, Polkadot stands out for its multi-chain structure. With its aspects of governance (DAO), adaptability and extensibility, Polkadot is one of the important projects in the cryptocurrency ecosystem.
What does DOT coin do?
With DOT, the native token of the Polkadot network, transactions can be managed in projects developed within the blockchain. DOT Coin holders also receive governance benefits by participating in surveys on the platform. DOT Coin holders can receive DOT Coin rewards using the Staking model. The staking process is based on obtaining new coins by locking DOT coins for a certain period on centralized and decentralized exchanges. DOT The Polkadot network token, a multi-chain blockchain, makes blockchains that generally cannot work together interoperable. The Polkadot network, which also eliminates the scaling problem in blockchain technology, is one of the few projects with a multi-chain structure.
Advantages and disadvantages of the DOT coin
The Polkadot protocol has a structure that allows different chains to communicate and aims to avoid various project problems. In the Polkadot ecosystem, which has relay chain, parachain, and bridge chains, the parachain structure is a technology that eliminates the scalability problem. On the other hand, the bridge structure enables communication with different blockchains. The advantages of Polkadot can be enumerated as follows:
- DOT is a governance token, and investors holding DOT have voting rights in the management process of the Polkadot network.
- DOT holders are entitled to a risk-free fixed income based on the annual return (APR) in the Polkadot network with a proof-of-stake consensus structure.
- The Polkadot network, which includes three different chains instead of a single blockchain, has eliminated the bottleneck that can occur with any blockchain.
- The Polkadot protocol can be optimized and made more efficient depending on the needs of the different blockchains. Unlike other networks, software upgrade is possible in the Polkadot network. With this feature, Polkadot is a project that does not require a hard fork like other cryptocurrencies.
- DOT coin is used to connect in Parachain networks. The Polkadot network contains more than one chain, which ensures a transparent network and fast transactions within the network.
- The Polkadot network is a concept that is interesting for blockchain developers and medium and small companies, as it is a network that can be used to create personalized blockchains.
The Polkadot network is a blockchain in which the development process of the projects it contains continues. On the PolkaProject platform, where the projects developed on the Polkadot network can be tracked, decentralized applications, wallet applications, and studies on the development of tools on the Polkadot network can be seen. The Polkadot network, which provides the ability to create personalized parachains using the substrate model, offers the opportunity to develop a blockchain network for individual developers or companies.
How is the DOT coin produced?
The DOT coin is a cryptocurrency that is not produced using the classic mining model. Since DOT is based on the proof-of-stake algorithm, it can be obtained through stakes. Cryptocurrency investors using DOT can earn DOT at an annual interest rate by locking their DOT coins on central exchanges for a set period. If DOT is withdrawn before the lock period, the interest amount will be canceled. Another alternative to purchasing DOT coins is to buy DOT on exchanges in cryptocurrencies and fiat pairs. The APR rate for DOT stakes varies depending on when DOT coins are blocked. When staking with different durations such as 90 or 120 days, the APR rate is higher when tokens are locked for the long term.
How to buy a DOT coin?
To buy Polkadot (DOT), you need to open an account on cryptocurrency exchanges operating in Turkey. DOT can be purchased in US dollar and Turkish lira pairs on exchanges where you can become a member with a bank account and personal details. Since USDT (Tether) is linked to TRY and USD rates, DOT can be bought with limit and market orders. The limit order type can be used to purchase coins at a specific price, and the market order type can meet the lowest offer from sellers. After buying on the exchanges where the altcoin is listed, the balance is updated on DOT at the exchange wallet address. DOT Deposits and withdrawals can be made through the wallet. DOT is an altcoin with a high trading volume due to its listing on many cryptocurrency exchanges. Investors are interested in trading it to profit from price drops and increases.
How to sell a DOT coin?
DOT coin sales can be made in spot and forward trades on cryptocurrency exchanges. DOT DOT, whose price charts and analysis are available on financial platforms, is among the largest cryptocurrencies in the world in terms of market capitalization and can therefore be sold on many exchanges. A limit order can be preferred to sell DOT at a specific price, and a market order can be preferred to trade immediately with the highest price of the buyers. While the average price of DOT purchases gives the cost, the ratio of the amount sold to the cost provides the profit or loss. Transfers or payments to other wallets can also be made at the DOT wallet address. While DOT sale transactions can be made immediately in USDT or TRY pairs on the spot market, long or short transactions can be made DOT on the futures markets by depositing the margin amount as collateral.
Calculating DOT coins
The Polkadot network is one of the largest blockchain networks in the world. Based on the transaction price of the coin DOT and the circulating supply, the market value can be calculated. As of April 2022, the transaction price of DOT is $18.26. With an offering of 987 million pieces, DOT is one of the 20 most valuable cryptocurrency projects globally and has a market value of $18 billion. Based on the current supply of DOT, the market value needs to be $98 billion for the price to be $100. The price of DOT is closely related to the price of cryptocurrencies such as Bitcoin and Ethereum. In addition, the interest in the Polkadot network and the intensity of projects developed in the network also influence the price of DOT.
DOT Coin Wallet
DOT coins can be stored in automatically defined exchange wallets after the account is opened with centralized exchanges. In addition, DOT coins can be stored in web3 wallets and cold wallets that can be used integrated with the browser. DOT Coins purchased on exchanges can be transferred between exchanges or wallets. Information such as the amount of DOT to be sent and the address of the recipient wallet must be entered carefully. Otherwise, funds may be irrevocably lost. Trezor and Ledger are among the most popular cold wallets. However, using a cold wallet requires technical knowledge.