🌐 Polkadot $DOT
It is a next-generation blockchain network aimed at building a multi-chain system that facilitates secure communication and exchange between different blockchains. It relies on the concept of "parachains" that connect to a central chain known as the "relay chain", enhancing its speed, security, and flexibility.
⚙️ Key Features of Polkadot
- Parallel Operation (Parachains): Supports running multiple chains simultaneously without slowdown.
- Scalability and Security: The decentralized model ensures collective security and efficient task division.
- Substrate Framework: Allows developers to easily create custom blockchains.
🪙 Uses of DOT Token
* Governance: Voting on decisions and the technical future of the network.
* Delegation and Validation: Used to confirm the validity of transactions within the Nominated Proof of Stake (NPoS) network.
* Connecting Parachains: Used as collateral for operating side chains within the system.
🔍 Influencing Factors
- Growth of the parachain network and the increase in the number of associated projects.
- Use of DOT in governance and delegation, affecting liquidity.
- General trends and volatility in the cryptocurrency market.