The digital transformation of our personal and business lives since the onset of the pandemic has meant consumers are expecting faster financial transactions and payment methods. Banks and businesses have had to evolve quickly to meet consumer needs and stay relevant in today’s market. With the rise of inflation and a growing mistrust in governments and banking systems, more businesses and investors are showing an interest in cryptocurrency. Although trading in cryptocurrency has been popular since 2019, recent times have seen a period of sustained growth in Bitcoin and other altcoin options. This article focuses on Polkadot and why it’s worth serious consideration from investors. Read dotusdt for trading information.
How long has Polkadot existed as a cryptocurrency?
Polkadot has very recently emerged on the cryptocurrency scene. It first featured in a whitepaper, published in 2016. Polka dot tokens went on sale in 2017 and it then went live as a Relay Chain in May 2020.
How does Polkadot work?
While Polkadot is young, its blockchain platform is innovative and permits data transfer and communication across independent blockchain systems. Polkadot uses a system of relay chains, parachains, parathreads and bridges to communicate across platforms, facilitating interoperability and system integration. It promotes leverage of data and connection between private blockchains and public networks. Polkadot enables trust free direct communication between systems without the need for a third party which keeps its security intact. Its token – DOT serves as an e payment currency.
What are the advantages of Polkadot?
Some of the benefits of Polkadot are outlined below:
- Its interoperability systems pave the way for cryptocurrency investors
- It can handle 1000 transactions per second which is set to increase
- Transaction fees are low and it’s scalable
- Polkadot is energy efficient and sustainable
- Platform facilitates development
- Polkadot is at the center of Web3 with input from developers from Parity Technologies and Polychain Capital
- It is paired with Chain link Oracle network and ANKR Stake Fi. Integration with Oracle may well increase Polkadots price. Partnerships make it a potential source of passive income.
Disadvantages of Polkadot
- Many of its innovative features from the whitepaper aren’t yet evident on the network
- Inflation rates can be raised by the user community
- Competition with other popular altcoins is high
- It’s early to predict long term prospects.
While all investments have a risk factor, the cryptocurrency sector is growing steadily and Polkadot is an innovative crypto worth watching.