What is Polkadot (DOT)?
- Claim to be a Layer-0 solution
- Project that attempts to connect blockchains together
- Solves the problem of interoperability: like the internet today that connects multiple computers together, Polkadot aims to be the internet of blockchains where information can be easily sent and received from different blockchains
- Another way of putting it, alt coins built on the ETH (layer 1) network will work well with each other, but alt coins built on ETH will not work well with alt coins built on Solana
- Polkadot aims to solve that problem so that all coins/blockchains will work with each other
How does Polkadot Work?
- Hub and Spoke model: the Hub is the Relay Chain which sits in the center of the block chain, and the Parachains connects into the hub to achieve consensus
- Analogy of how Polkadot works is imagine an office; the parachains are the office workers which have independent roles
- Every so often, the office workers must meet together to sync up their activities like the hub
- Smart contract event on eth triggers a payment on BTC network
- Cross-chain swap of LTC for XRP using smart contracts without intermediaries