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Welcome to MAXBIT support

Polkadot (DOT)

Maxbit Support
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What is Polkadot (DOT)?

Polkadot (DOT).png

  1. Native Blockchain:
    • Polkadot operates on its unique blockchain infrastructure. It is a multi-chain framework designed to facilitate multiple blockchains' interoperation and scalability, connecting several specialized chains into one universal network.
  2. Consensus Protocol:
    • Polkadot uses a hybrid consensus mechanism combining Nominated Proof-of-Stake (NPoS) for validator selection and GRANDPA (GHOST-based Recursive ANcestor Deriving Prefix Agreement) for finality.
  3. Trilemma (Security, Speed, Scalability):
    • Security: Polkadot's shared security model ensures that all parachains (individual chains) benefit from the collective security of the entire network.
    • Speed: Speed varies based on the complexity of transactions, but the multi-chain nature of Polkadot allows for parallel processing, improving throughput.
    • Scalability: Polkadot's architecture, which connects multiple specialized chains, is built for scalability.
  4. Founder / Date Founded:
    • Polkadot was founded by Dr. Gavin Wood, who is also a co-founder and former CTO of Ethereum. The Web3 Foundation commissioned Polkadot's development in 2016.
  5. Objective / Use Case:
    • Polkadot seeks to enable various blockchains to interoperate and share information, creating a web where independent chains can exchange messages and value in a trust-free fashion. It also allows for the creation and connection of more specialized chains.
  6. Total supply/ Limit or Unlimited:
    • The initial supply of DOT was 10 million. Polkadot has an inflationary model to reward validators, and the rate of inflation is dynamic based on staking participation.
  7. Supply Deflation:
    • While DOT is not inherently deflationary, Polkadot does have a mechanism called "transaction fee burning" which could lead to DOTs being burned (removed from supply) based on network usage.

          This summary provides a foundational understanding of Polkadot and its DOT token for newcomers to the world of cryptocurrency. As always, it's essential to stay updated with the latest changes and advancements in the rapidly-evolving crypto space.

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