Polkadot is a cryptocurrency network that wants to help weave all the disparate blockchains together.
Currently, blockchains operate separately and in silos. Polkdadot promises to create an internet of interoperable blockchains for a decentralized web. Developers could easily build and experiment. Users would benefit from seamless interoperability.
In the network’s so-called “relay chain, transaction addresses are checked and data is standardized so that every system can understand it. This is where all the chains pool security.
While functionality is taken care of, blockchains connected to Polkadot can use their own PoS mechanism, decide when and how to update their code and run the dapps or tokens they choose.
Does Polkadot have a cryptocurrency?
Yes, DOT, the internal token of the Polkadot network, allows holders to vote on potential code changes, which then automatically upgrade across the network if a consensus is reached.
Dfinity claims to have the answer to scalability and WanChain is also addressing interoperability. But it’s Cosmos that’s pitched as Polkadot’s biggest competitor. It’s been working on blockchain interoperability since 2014. It’s broadly similar to Polkadot and is expected to launch in February 2019.
If successful, Polkadot will take blockchain technology to the next level. However, the project is being developed over two years and there’s a question mark over the length of time needed and whether it can stand up to its competitors.