Polkadot is an open-source sharding multichain protocol that facilitates the cross-chain transfer of any data or asset types, not just tokens, thereby making a wide range of blockchains interoperable with each other. This interoperability seeks to establish a fully decentralized and private web, controlled by its users, and simplify the creation of new applications, institutions and services.
The Polkadot protocol connects public and private chains, permissionless networks, oracles and future technologies, allowing these independent blockchains to trustlessly share information and transactions through the Polkadot relay chain (explained further down).
Polkadot’s native DOT token serves three clear purposes: providing network governance and operations, and creating parachains (parallel chains) by bonding.
Features of Polkadot
- Strong development team
- Extra key security
Advantages of Polkadot
- Their team consists of highly skilled developers, mainly focusing on the Ethereum platform
- Polkadot has been extremely transparent
- It also allows developers to launch chains and applications leveraging a shared security model, without having to worry about attracting enough miners
- You can also earn interest thanks to Polkadot’s Proof of Stake technology
- Interoperability opens a variety of yet to be seen use cases
Disadvantages of Polkadot
- Their code vulnerabilities were hacked twice, so this is kinda worrisome
- They are competing with many other general-purpose, smart contracting, Proof of Stake blockchains like Tezos, Cosmos, and Cardano
- Relatively new token with unproven track record