Polkadot is a multi-chain framework that supports interoperability between widely different chains with various properties, including encrypted proof-of-authority chains suitable for internal enterprise networks. It also enables cross-blockchain transfers of any type of data or asset, not just tokens. Connecting to Polkadot gives you the ability to interoperate with a wide variety of blockchains in the Polkadot network. Besides, Polkadot is a sharded multichain network, meaning it can process many transactions on several chains in parallel, dubbed parachains. This parallel processing power improves scalability.
DOT are the token native to the Polkadot network for the purpose of carrying out the key functions of the platform. According to the Polkadot website, the DOT token serves three distinct purposes: providing governance for the network, operating the network, and creating parachains by bonding DOT. Governance, staking and bonding.
Governance means that Polkadot token holders have complete control over the protocol. All privileges, which on other platforms are exclusive to miners, are granted to them, including managing exceptional events such as protocol upgrades and fixes. Staking means that good actors are rewarded whilst bad actors will lose their stake in the network. This ensures the network stays secure. Finally, bonding means that outdated or non-useful parachains are removed by removing bonded tokens, and this is a form of proof of stake.According to CoinMarketCap, at the moment of writing this article the live Polkadot price is US$24,90 with a 24-hour trading volume of US$1.270.566.100. Besides, it is ranked number 10 in CoinMarketCap’s ranking, with a live market cap of US$24.590.375.072. It has a circulating supply of 987.579.315 DOT coins and the maximum supply is not available. Some exchanges for Polkadot trading are currently Binance, Huobi Global, OKEx, Coinbase, KuCoin and more.