Polkadot is a relatively new cryptocurrency that just went public in August 2020, but it has skyrocketed in 2021 and is one of the cryptocurrencies that is getting a lot of attention right now .
After that, although it experienced a significant decline in early May 2021, prices began to rise again from there and showed a strong rise in 2021.
This time, we will explain the features of Polkadot, past price changes, future outlook, etc. in an easy-to-understand manner.
table of contents
- What is the crypto currency Polkadot?
- Features of Polkadot
- Can achieve interoperability
- Can solve scalability problems
- Anyone can develop a blockchain
- High security performance
- Has an open governance system
- Polkadot price trends and current ratings
- Chart from the listing of Polkadot to the present
- Factors behind the soaring price of polka dots
- Future price forecasts and outlooks for Polkadot
- Should I buy Polkadot?
What is the crypto currency Polkadot?
| Currency (token) name | Polkadot |
| Blockchain | Polkadot |
| Ticker symbol / unit | DOT |
| Market capitalization ranking (as of January 2022) | 10th |
| Official site | Polkadot official website |
As of January 18, 2022
Polkadot is a project aiming to realize the world of Web3.0, and a blockchain for that purpose .
The crypto currency (token) handled on the Polkadot blockchain is also called Polkadot .
Web3.0 refers to the new decentralized (decentralized) Web world that is being realized by blockchain technology .
The world of the Web so far is
- Web1.0: An era in which users browse homepages unilaterally
- Web2.0: An era of two-way communication via SNS (Web2.0 as of 2022)
I have walked the history.
In the past, for example, Google users have presented personal information to Google for use.
Others such as amazon, yahoo, and Rakuten are also the same.
In this way, it was a centralized world where some companies collect and manage personal information .
But in the case of centralized,
- Privacy issues that allow some companies to monopolize personal information
- Security issues that can lead to a large amount of personal information being leaked when a problem occurs with the company
had.
In fact, you often see the news that personal information has been leaked from major companies.
Therefore, at Polkadot, by using blockchain technology, personal information can be managed in a decentralized manner among users on the blockchain, and the risk of unauthorized access and information leakage can be reduced . We are aiming for Web3.0.
Polkadot was also developed by a Swiss foundation called the Web3 Foundation.
Among the founders of the Web3 Foundation is Ethereum co-founder Gavin Wood, which also draws a lot of hope and attention from Polkadot.
Features of Polkadot
Polkadot aims to realize a decentralized Web world that can interoperate by connecting Web3.0 and eventually various blockchains .
In addition, it has the following features to achieve this.5 features of Polkadot
- Can achieve interoperability
- Can solve scalability problems
- You can easily make a blockchain
- High security performance
- Has an open governance system
Can achieve interoperability
Interoperability means ” interoperability ” in Japanese .
Here, it means that different blockchains can be connected and interoperable .
Previous blockchains, such as Bitcoin and Ethereum, were incompatible and could not connect each blockchain to each other.
Therefore, when trying to convert Bitcoin to Ethereum, it was necessary to trade on the exchange.
Going through an exchange means that you need something centralized with an administrator .
In other words, in the past, although each blockchain was decentralized, it had to be centralized as well.
However, it is possible to realize interoperability by connecting different blockchains via Polkadot, and it is possible to create a completely decentralized Web world = Web3.0.
Can solve scalability problems
Scalability issues are issues where users are too concentrated on the blockchain, causing delays in transaction processing and rising fees .
Also, the main reason for the delay was the time it took to validate the transaction when the users were concentrated.
On the other hand, at Polkadot, a parallelized blockchain called “Parachain” solves the scalability problem by processing transactions in parallel and increasing the processing speed.
Anyone can develop a blockchain
Polkadot generally provides a blockchain development tool called ” Substrate “.
By using Substrate, anyone can develop a blockchain compatible with polka dots.
High security performance
Many blockchains in the past have devoted a lot of resources to each blockchain in order to ensure security for each blockchain.
Also, with a small blockchain, it was not possible to secure sufficient security resources, and it was happening that it was attacked from the outside.
On the other hand, in the case of Polkadot, security programs are pooled on the network in the form of “Pooled Security”, which can be utilized by each blockchain.
Therefore , common security performance is guaranteed for all blockchains without having to devote resources to each blockchain.
Has an open governance system
At Polkadot, the management side does not proceed with development unilaterally, but the system is such that users work together to develop the network.
Specifically, Polkadot users can be given governance rights by holding crypto currency (tokens) and can be involved in determining fees in the network, adding / removing blockchains, updating protocols, etc. It will be like.
Polkadot price trends and current ratings
Polkadot is a relatively new cryptocurrency (token) that just went public in August 2020 .
However, it is extremely popular, and as of January 2022, it ranked 10th in the market capitalization ranking in just about a year, and the price continues to rise.
Here, let’s take a look at the past price changes of Polkadot, the current evaluation, and the factors behind the soaring price.
Chart from the listing of Polkadot to the present
Polkadot’s DOT / USD chart from August 2020 to January 2022 is shown in the image above.
Since its listing in August 2020, it has continued to skyrocket, reaching a high of about $ 47 in May 2021.
Prices then plummeted, dropping to below the high of about $ 12, which is about a quarter of the high in July 2021.
However, since then, the price has continued to rise as shown in the chart above, and as of January 18, 2022, the price is trading at about ¥ 2,958.52.
Factors behind the soaring price of polka dots
The main factors behind the soaring polkadots are believed to be:Three main factors for the soaring polkadot
- China’s leading exchange Binance establishes fund to support Polkadot
- Insurance marketplace “Polka Cover” related to DeFi (decentralized finance) announces implementation of IDO
- Cryptocurrency exchange Bitrue announces handling of Polkadot and start of staking service with annual interest rate of 7.3%
China’s leading exchange Binance establishes fund to support Polkadot
On December 23, 2020, China’s major crypto exchange Binance established a $ 10 million fund to support Polkadot’s project.
This is said to be one of the efforts called “Binance Launchpool” to provide Binance users with DeFi (decentralized finance) opportunities.
DeFi (decentralized finance) is explained separately in the article What is DeFi, so please have a look if you like.
Insurance marketplace “Polka Cover” related to DeFi (decentralized finance) announces implementation of IDO
“Polka Cover” is a project to provide insurance for DeFi assets.
It was announced on January 3, 2021 that an IDO will be made for the project .What is IDO?
IDO is an abbreviation for Initial DEX Offering and refers to the sale of cryptocurrency tokens held on the Decentralized Exchange (DEX) .
Cryptocurrency exchange Bitrue announces handling of Polkadot and start of staking service with annual interest rate of 7.3%
On January 5, 2021, Singapore’s cryptocurrency exchange Bitrue announced that it will handle Polka Dot and launch a staking service with a high annual interest rate of 7.3% .What is staking service?
The staking service is a mechanism to receive rewards as compensation by holding the target crypto currency and participating in the blockchain network.
Due to the frequent occurrence of positive news about Polkadot in such a short period of time, it is believed that it attracted attention and soared.
I think it will continue to attract attention in the future, so please consider investing.
Future price forecasts and outlooks for Polkadot
Regarding the future outlook for Polkadot, there may be a temporary adjustment phase due to the current surge, but there is a strong view that it will continue to grow in the long run .
There are three reasons for this.Three reasons why Polkadot is expected to continue to grow
- Steak service is provided
- Over 300 projects are already in operation
- A project to tokenize Bitcoin is underway
- Steak service is provided
The staking service is a mechanism to obtain income gain by holding the target crypto currency .
Currently, multiple cryptocurrency exchanges are offering staking services for Polkadot.
As of January 2022, according to the staking data site “Staking Rewards”, Polkadot is ranked third overall in terms of the value of stakes converted to US dollars, which is very popular.
Users who own Polkadot for income gain purposes are basically supposed to hold it for a long time , so it is difficult to sell it, that is, it is unlikely to be a factor that lowers the price.
- Over 300 projects are already in operation
Since the end of 2020, there have been a series of announcements about projects related to Polkadot, but it is said that more than 300 projects are still underway on the Polkadot blockchain .
Therefore, it is expected that news that will be a positive factor related to Polkadot will be announced on a regular basis and will attract more attention in the future.
- Parachain operation started
Polkadot went live with Parachain in December 2021.
In the future, five projects will be connected to Parachain and the operation of Polkadot will start in earnest, so there are high expectations for the future.
By March 2022, six projects are expected to be connected and are attracting attention.
- A project to tokenize Bitcoin is underway
At Polkadot, a project is underway to convert Bitcoin into tokens (PolkaBTC) so that it can be used on decentralized exchanges (DEX), stablecoin issuance, lending, etc.
It is expected to be realized by the end of 2022, and when it is realized, more attention will be paid.
- Many users have long-term holdings for staking purposes
- Positive news about Polkadot will continue to appear on a regular basis.
For these reasons, Polkadot is expected to continue to grow.
