📝 Hello everyone, I am 𝟏𝟎, welcome back to the #区块链发展史 Project Investment Research Series. Today, we will focus on "Polkadot / DOT".

Polkadot is a blockchain project that aims to drive the future of the decentralized Internet (Web3). Its native token DOT also plays an important role in governance.

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1. What is Polkadot (DOT)?

Polkadot (DOT) is a multi-chain blockchain platform founded by Gavin Wood, one of the co-founders of Ethereum. Its core goal is to provide a secure and interoperable blockchain ecosystem that supports multiple interoperable blockchains running simultaneously.

Polkadot can be likened to a giant shopping mall where various stores (i.e. different blockchains) operate, sharing security and interconnectivity with each other, allowing them to easily interact and collaborate without worrying about security or isolation issues.

While some may mistakenly believe that Polkadot directly connects different blockchain networks (such as Bitcoin and Ethereum), in fact, it achieves this interoperability through a technology called bridging. Bridging allows new blockchains to be built on Polkadot's parachains and connect them through the Polkadot network, providing them with the necessary infrastructure and security support, allowing them to focus on application development and real-world applications.

The DOT token plays an important role in the Polkadot ecosystem. It has three main functions: staking, governance, and connecting to new chains. Staking DOT can ensure network security and help verify transactions to obtain new tokens. DOT holders can also participate in network governance and decide the future development direction of Polkadot.

2. How does Polkadot work?

Polkadot works by connecting multiple blockchains into a unified network through a central chain called the "Relay Chain". The Relay Chain is built with the Substrate framework developed by Parity and is primarily responsible for the network's security, consensus, and cross-chain interoperability. It has simple functions, mainly to protect and coordinate the entire system.

Polkadot has an important feature, which is "parallel chains". Parallel chains are independent blockchains that run in parallel and connect to the relay chain. Each parachain can have its own unique design, token economy, functions, and governance. By connecting to Polkadot, these parachains can share the security of the entire network without having to build their own validator community. Not only can they exchange tokens, but they can also exchange arbitrary data between chains. This architecture allows blockchains to focus on specific functions and improve efficiency and security.

Polkadot uses the Nominated Proof of Stake (NPoS) consensus mechanism, which involves two roles: validators and nominators. Validators secure the relay chain by staking DOT tokens, verify transactions on parachains, participate in consensus with other validators, and generate blocks on the relay chain. Nominators help secure the network by staking their DOT tokens to validators they trust. This system not only enhances the security of the network, but also enables cross-chain communication and interoperability.

In addition, Polkadot has two specialized roles: Collators and Fishermen. Collators are responsible for managing transactions on parachains and submitting valid transactions to validators on the relay chain. Fishermen are responsible for monitoring the network and reporting misconduct. These roles require more technical skills, but less commitment than full validators and are important roles in maintaining the network.

3. Use Cases and Applications of Polkadot and DOT

Polkadot and its token $DOT leverage their highly scalable and interoperable design capabilities to demonstrate broad applications and diverse use cases in the blockchain ecosystem. One of the main areas that benefit from Polkadot's capabilities is decentralized finance (DeFi). By facilitating seamless asset and data flows between different blockchains, Polkadot enhances the DeFi ecosystem, opening up new possibilities for cross-chain lending and decentralized exchanges.

Polkadot also demonstrates great potential in the field of Internet of Things (IoT). It can securely and efficiently connect various blockchains, providing an ideal solution for inter-device communication in IoT applications, supporting scenarios such as supply chain management, smart cities, and self-driving cars.

In the gaming industry, Polkadot has also demonstrated promising applications. Its scalable and interoperable ecosystem enables novel cross-chain gaming experiences, where players can leverage assets from various blockchains in the same game. This not only enriches gameplay, but also brings new monetization opportunities for game developers.

4. Challenges of Polkadot

Although the Polkadot ecosystem demonstrates a comprehensive design and a powerful toolkit for solving problems in the blockchain field, its development path has not been smooth.

Polkadot is designed to strike a complex balance: it aims to provide high scalability and seamless interoperability while ensuring security. However, this complexity may pose a barrier to potential users and developers, making its adoption process somewhat lengthy. Especially for emerging projects trying to build their own blockchains, the process of obtaining and configuring parachain slots may seem cumbersome and costly.

In addition, Polkadot is actively seeking to build a vibrant community to test and promote new tools in its ecosystem. The effectiveness of these tools in the real world will directly affect whether Polkadot can achieve the core goals of its design.

5. Tail

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