The DOT currency of the Polkadot network is distinguished by several aspects that make it unique compared to other cryptocurrencies. Here are its main features:
1. Interoperability
The Polkadot network can connect different blockchain chains, making it easier to exchange data and assets across multiple platforms.
This allows developers to create decentralized applications (DApps) that operate across different chains.
2. Scalability
Polkadot relies on a Parachains architecture, which are parallel subnetworks connected to the main chain, increasing the network's ability to process a larger number of transactions compared to traditional blockchains.
3. Decentralized Governance
DOT holders have the right to vote on network decisions, including protocol updates and technical adjustments, making development sustainable and democratic.
4. Shared Security
Polkadot uses a model that allows all Parachains to benefit from the security provided by the main network, making new projects more secure without the need to build their own security mechanism.
5. Staking and Rewards
DOT holders can participate in the Staking process to earn rewards by supporting validators and securing the network.
6. Forkless Upgrades
Unlike many blockchains that require Hard Forks to update the network, Polkadot can implement updates smoothly without the need for new splits.