Polkadot (DOT) Tausch

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What Is Polkadot?

Polkadot is a protocol in which independent blockchains exchange information. The Polkadot project is the brainchild of the co-founder of Ethereum, Dr. Gavin Wood. Dr. Gavin created Polkadot to make inter-blockchain transactions possible, eliminating the long-standing problem of scalability for a single blockchain.

The project’s native token DOT serves mainly three purposes - governance, staking, and bonding. DOT token holders can vote, earn rewards on their stake or add new parachains by bonding. This way the project gives the users full control over the protocol - the ecosystem doesn't have miners. Instead, it leverages a proof of stake algorithm so the holders can manage protocol upgrades and other fixes. The project uses game theory and rewards users who behave honestly, while making cheaters lose part of their stake.

The DOT token has exploded in value in the fall of 2020, being one of the top crypto projects right now. The token has a maximum supply of 999 million coins.

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