Market Analysis Report (19 Oct 2021)

Polkadot (DOT) saw its price jump this week after the launch of the highly anticipated parachain auctions, which will allocate slots to projects building on the Polkadot network, were finally scheduled. The date was set through a governance vote and will kick off an important milestone for the cryptocurrency.

Polkadot’s DOT token jumped from around $33 at the beginning of the week to a $42 high before it started correcting. The cryptocurrency is at the time of writing trading just under the $40 mark.

What is Polkadot?

Polkadot is a blockchain network often described as a “blockchain of blockchains,” as it allows users to launch and operate their own blockchains on top of the main Polkadot blockchain. This main blockchain, called the relay chain, does not support smart contracts, but other blockchains connected to it can support them.

As a result, Polkadot is set to become a growing ecosystem of cryptocurrencies that competes with other smart contract networks such as Ethereum, the Binance Smart Chain, and more.

What Is DOT Used For?

DOT is the native cryptocurrency of the Polkadot network and serves as its governance token. DOT holders can stake their tokens to vote on network upgrades and help decide the future of Polkadot by actively participating in its governance.

DOT holders can influence the project’s governance by voting on changes, and by electing the Council members. These are responsible for proposing changes and determining which ones are made to the software.

Who created Polkadot?

The Polkadot project was founded by Ethereum co-founder Gavin Wood, along with Peter Czaban and Robert Habermeier in 2016. Wood is the developer behind Solidity, the coding language used to write smart contracts on Ethereum and has experience as a research scientist at Microsoft.

Source: https://www.cryptocompare.com/email-updates/daily/2021/oct/19/