WHAT IS Polkado:
Polkadot is a public, open-source blockchain project that allows anyone to build and deploy their own blockchains.
The project seeks to address the scalability limitations of existing chains and make decentralization more feasible for all levels of users,
from startups to major corporations.The project’s vision is to create a “Web 3.0” ecosystem, where different blockchains can interoperate with each other and with centralized services in a user-friendly way.
This would allow all users to take advantage of the best features of each chain while still managing security and privacy.
The project has received funding from a number of major organizations, including the Ethereum Foundation and Parity Technologies.
TYPES OF POLKADOT:
Polkadot consists of two main components: the relay chain and the parachains.
The relay chain is the central component of Polkadotand is responsible for managing the overall system.
It arbitrates disputes between the parachains and manages the global pool of DOT tokens,which act as fuel for the network.
The parachains are the actual blockchains that make up the Polkadot network.
They can be created by any person and are responsiblefor processing transactions and storing data.
in the network to secure a parachainusers must stake polka tokens on it.
This locks up the tokens and preventsthem from being transfer.
Or used elsewhere.a share of the transaction fees collected by the parachain.
The amount of DOT tokens required to stake on aparachain depends on its popularity.More popular parachainswill required more tokens to be staked.
But will also offer higher rewards.Polka also allows usersto delegate their tokens to validatorswho can then vote on behalf of the delegators.
This allows users to earn rewards without havingto run their own node or take on any extra risk.
Polkadot is a highly ambitious project that seeks to addresssome of the most pressing issues facing blockchain technology today.
If successful, it could have a major impact on the way we use and interact with blockchains.