Polkadot

 

What is Polkadot?

The Polkadot network facilitates cross-chain communication and interoperability by connecting multiple blockchains into one unified network. The infrastructure includes the Relay Chain, the Parachains, and the Bridges.

The Relay Chain is the central chain of the Polkadot network. All validators of Polkadot are staked on the Relay Chain. The Parachains are parallel chains that connect to the Relay chain and are maintained by their validators, called collators. The Bridges are special blockchains that allow Parachains to connect to and communicate with external networks like Ethereum and Bitcoin.

DOT tokens serve multiple purposes such as:

Governance: where participants can manage protocol updates and fixes.

Staking: where the tokens are staked to ensure the network remains secure, as good validators are rewarded, and bad actors lose their stake. 

Bonding: where new parachains are supported by bonding tokens.

Fees: for ferrying messages across parachains.