🔔 Introduction:

I noticed #KaitoAI that Polkadot has returned to the forefront of the rankings. The launch of DOT and the underlying design of 'multi-chain parallel + cross-chain communication' remains a source of inspiration that many new projects cannot avoid.

1️⃣ Project Introduction:

@Polkadot Network is a project created by Ethereum co-founder Gavin Wood, focusing on the concept of 'chains being able to communicate with each other.' The core problem it solves is blockchain interoperability; in other words, just like it's convenient for us to send messages back and forth on WeChat and DingTalk, most of the time blockchains are just talking past each other.

Polkadot's solution is to create a 'Relay Chain,' allowing each 'Parachain' to hang on top like a plugin, each independent yet able to communicate. Each chain can focus on its own tasks, such as one chain specializing in privacy transactions, another in DeFi, and another running games, but they can send messages and transfer assets through the relay chain.

This design is somewhat like building blocks, and some people call it the 'Lego of the blockchain world.'

2️⃣ Product Highlights and Core Features:

🔸 Parallel Chain Mechanism: Polkadot's biggest feature is that it is not a 'one chain to rule them all' structure, but allows multiple chains with different functionalities to operate in parallel and with resource isolation. You can think of it as a super wide highway, where each parallel chain is an independent lane, not interfering with each other but still able to communicate.

🔸 Cross-Chain Protocol XCM: Polkadot has launched its own cross-chain communication protocol XCM, solving the 'language barrier' between chains. This protocol can not only transfer assets but also logic; for example, a smart contract on one chain can call functions on another chain, just like microservices.

🔸 On-Chain Governance: DOT holders can participate in voting, such as deciding upgrades, changes to the relay chain, and even which parallel chains can go live. This governance mechanism allows the community to truly participate in the project's direction, rather than a model where 'consortia make decisions and users watch.'

🔸 Substrate Framework: Want to build your own blockchain? With the Substrate framework, you can get started with just a few lines of code. It is a set of blockchain development tools created by the Polkadot team, allowing developers to piece together chains that meet their needs, offering high flexibility.

3️⃣ Financing Situation and Current Token Status:

The Polkadot team raised over $200 million for protocol development by selling DOT tokens through the Web3 Foundation in 2017. As of now, Polkadot continues to rank in the top 20 in cryptocurrency market capitalization, with a market cap of approximately $6.319 billion, a 24-hour trading volume of around $163.6 million, and a circulating supply of 1.49 billion DOT tokens, of which about 880 million are staked.

➤ Staking: Holders can stake DOT for rewards, while also incentivizing network participants to act honestly.

➤ Governance: DOT holders have the right to participate in voting, with weight depending on the amount staked.

➤ Binding: Due to the limited number of parallel chain slots, DOT tokens need to be used to reserve slot time on a monthly basis.


4️⃣ Latest Progress News:

➤ Agile Coretime Update: In September 2024, Polkadot launched the Agile Coretime update, allowing parallel chain developers to purchase parallel chain slots in bulk, and buyers can divide their core time into parts and sell them.

➤ Grayscale Polkadot ETF Listing Application: Nasdaq has applied for the listing of the Grayscale Exchange-Traded Fund (ETF), which holds DOT, Polkadot's native token.

➤ Massive Community Governance: Polkadot has 1.47 million DAO members (based on the total number of on-chain wallets), with over 1,500 public votes created since 2023, and a staking economy security of $5 billion, with over 600 projects in the ecosystem and more than 70 active parallel chains.

➤ Well-Known Projects Launched, such as NFL Rivals and Mubert: Many projects choose to build within the Polkadot ecosystem, including NFL Rivals, Hydration, Acurast, and others.

AI music pioneer Mubert has also transformed into a decentralized platform, focusing on content ownership, monetization, and innovation, all supported by Polkadot's technology.

🎯 Written at the end:

Polkadot has evolved from the early concept of 'cross-chain' to now upgrading to Polkadot 2.0, with the core logic of the DOT project remaining unchanged: to enable communication between chains and pave the way for the future of Web3.

This article does not constitute any investment advice! Investors need to carefully assess risks and market performance! #DYOR

🤝 Thank you everyone!