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Polkadot (DOT) Cryptocurrency Review

21.12.2022 |

About Polkadot (DOT)

Blockchain technology appeared not so long ago, in 2009, when Bitcoin was created. Despite this, the technology is constantly undergoing changes, as the number of users, the load on the network and the need to implement changes is growing.

Polkadot has become one of the new generation projects actively solving the problems of the “old” blockchains. Now the token of the project occupies the 10th place by capitalization on CoinMarketCap.

History of the project creation

Polkadot is a project of the Web3 Foundation. It was created in 2016 under the direction of Gavin Wood, Peter Chaban and Robert Habermayer. They are also founders of the Web 3 Foundation.

The Foundation develops and finances projects related to the development of a new generation of the Internet — Web 3.0. This stage of the development of the world Wide web is focused on decentralization, simplification of user access to various resources, introduction of open source technologies and democratization of the Internet.

Polka dot implements these principles and acts as one of the options for implementing the work of Web 3.0.

The launch of Polkadot v1 began with the main Relay Chain block in May 2020 and ended in December 2021 with the start of operation of the parachains. Since 2022, Polkadot has been in the phase of modernization, approval of changes to their implementation in the protocol.

The principle of operation of the Polkadot network

Polkadot is a protocol that provides information exchange between blockchains. It is an ecosystem consisting of four types of blockchains that can transfer data to each other. For a full review of Polka dot, consider each of the types.

Relay Chain

This is the main blockchain. It is responsible for ensuring network security, achieving consensus and maintaining interaction and work between blockchains.


These are separate blockchains that can have their own tokens, not the Polkadot coin, and functions that differ from the main blockchain. They are created by different developers and connected to the Relay Chain.


These are independent blockchains, as well as parachains. They differ from each other in the economic model of interaction with the main chain. The creators of a pair of threads do not have to connect to Polkadot for a fixed period and make all the payment for the time they work with the ecosystem. They pay while they are connected, they can choose the time period they need and stop working when they want. Parachains get access immediately for a long period of several years and their creators must get a place at an auction or funding within the framework of a charity program.


These are “bridges” that create the possibility of communication of parachains and paranites with third-party blockchains. With their help, data can be exchanged with such networks as Bitcoin, Ethereum, etc.


Most of the blockchains, especially the “old” ones, such as Bitcoin, face the impossibility of updating the network and expanding it. Because of this, technologies are becoming outdated and transactions are taking longer, and interaction with other networks is becoming more difficult.

  • Scalability. The connection of parallel blockchains makes it possible to expand the network and distribute transactions. This speeds up work and prevents congestion, which slows down data exchange and transaction confirmations. The Substrate framework is also available to create new blockchains that will be connected to the main network.
  • Cross-chain interaction. Bridges provide data exchange with third-party blockchains that are not connected to the Polkadot network.
  • Updatability of the blockchain. The simplified system of updating the parachains saves the network from possible hard forks that can negatively affect the project.


Polkadot has a limit on the number of places to connect parachains. There were 100 of them at the last auction. There are also restrictions for blockchains that can exchange information with the network via bridges.

Polkadot token (DOT)

Cryptocurrency Polkadot — DOT. This is the native token of the project, which is used to manage the platform, in stacking and when connecting parachains and parathreads.

The current Polkadot (DOT) course can be viewed at CoinMarketCap.

There is also an official Polkadot wallet. There is both an extension for Chrome and Firefox browsers, and a website.

Polkadot: forecast for 2022-2023

Based on the current situation in the cryptocurrency market, experts do not predict a sharp jump in the value of Polkadot. On average, it is expected to increase the price by no more than 20-30% per month. By the beginning of 2023, the rate may rise to $ 18-20.

Since the end of 2021, there has been no major news around the project. The most significant news for Polkadot was the launch of a couple of members and an auction for 100 seats.