Polkadot is an innovative, interoperable blockchain network that has the potential to revolutionize the crypto industry. It is the brainchild of Dr. Gavin Wood, one of the co-founders of Ethereum.

Polkadot provides a platform for different blockchains to interact with each other, enabling the exchange of data and assets between them.

With its scalability, robust security features, and cross-chain compatibility, Polkadot is quickly becoming one of the most popular networks for developers and users. This comprehensive guide will provide an overview of the Polkadot network and its features and a look at some of the projects built on the platform. From its scalability to its security and interoperability, this guide will cover the basics of Polkadot and why it is revolutionizing the blockchain industry.

History of the Polkadot Network

‍The Polkadot network is a scalable, interoperable blockchain network designed to connect numerous blockchain networks and facilitate data and asset transfer between them. It was proposed by Gavin Wood, one of the co-founders of Ethereum, and was funded by a successful ICO in 2017. 

The network is powered by a native token known as DOT, which governs the network and exchanges data between chains.

Polkadot is unique in that it is designed to be "hack-proof", due to its implementation of a "democratic" consensus mechanism. While a small number of miners control other blockchain networks, Polkadot's consensus is controlled by a large pool of validators who are democratically elected by users of the network. This ensures that no one party can completely control the network, making it resistant to cyber-attacks.

Polkadot's Scalability

One of the biggest issues affecting the blockchain industry is scalability. Networks like Ethereum can only process 15 transactions per second, which is far from sufficient for mass adoption. If a blockchain network hopes to be used by large corporations and governments, a low transaction capacity is a huge barrier to entry.

Polkadot uses a unique relay chain system to solve the scalability problem. The relay chain system acts as a bridge between different blockchains, allowing them to connect to each other. The chains are controlled by validators who process transactions for chains they are not a part of. 

This allows for transactions on the Polkadot network to be processed by a network of blockchains instead of one single blockchain. This allows for a significant increase in transaction capacity, with one estimate showing 200,000 transactions per second.

The Security Benefits Of Polkadot

Polkadot is committed to providing secure, stable blockchain networks that are not susceptible to cyber attacks. To achieve this, Polkadot uses a unique governance model that allows a large pool of validators to secure the network against attacks.

‍Any party can become a validator on the network by staking DOT tokens. Validators are then rewarded for their work by being paid a portion of DOT token fees generated by the network. 

Validators have a lot of power on the Polkadot network and are responsible for:

• Confirming transactions
• Producing blocks
• Processing cross-chain communication, and 
• Governing the network. 
  

If a validator behaves maliciously on the network, the network can punish them by reducing their reward or completely removing them from the network.

Polkadot's Interoperability

One of the biggest problems facing blockchain networks is interoperability. Blockchains cannot communicate with each other, which is a significant barrier to the implementation of blockchain technology on a large scale. Polkadot uses a unique system known as the relay chain to enable cross-chain communication between different networks. 

For example, let's say that a business wants to move funds from a corporate blockchain network to a public blockchain network for the purpose of trading digital assets. Currently, there is no way for these blockchains to communicate with each other, which makes the process extremely difficult and expensive.

With Polkadot's relay chain, the funds are sent from one blockchain to the relay chain; then they are sent to the other blockchain. The relay chain allows blockchain networks to communicate with each other and exchange data, removing the interoperability barrier.

Projects Built on Polkadot

Polkadot has a handful of projects being built on its network. Acala is one such project.

Acala is the ultimate DeFi solution, providing a secure and scalable blockchain platform built on Polkadot, along with a variety of cross-chain financial tools. Users can trade, borrow, provide liquidity, access staking derivatives, and earn high-interest returns on their digital assets. Compatible with Ethereum and optimized for DeFi, Acala's all-in-one network offers endless possibilities for decentralized finance.

How to Buy Polkadot Crypto?

To buy Polkadot’s token, follow these 3-simple steps:

1. Select a Cryptocurrency Exchange

If you’re new to investing in cryptocurrency, you’ll have to open an account with a cryptocurrency exchange. If you’re deciding between exchanges, pay attention to the platform’s security features, account minimums and added fees. Eg: Binance, Coinbase, Kraken

2. Submit Your Polkadot Order

Once you get an exchange account, you can fund it by either linking your bank account or entering your debit card information. Some exchanges allow you to use a credit card, but think twice before using credit as it might charge excess fees. When you’re ready to purchase Polkadot, use the ticker symbol—DOT—and enter the amount you want to invest, such as $50 or $100.

3. Store Your Polkadot

Whenever you buy cryptocurrencies, you have to handle storage on your own. Properly storing your investment is essential to ensure you keep your tokens safe. There are several storage options:

Hard Wallet: A hard wallet resembles a flash drive or USB drive. It’s a small, physical device that plugs into your computer or laptop and stores your private and personal crypto keys. They are considered “cold” because they aren’t connected to the internet or a network when not actively in use.

Paper Wallet: This form of storage is less popular than it used to be but can be a viable storage option. With a paper wallet, you write down keys or apps to download a QR code. If you lose it, you can recover your cryptocurrencies.

Software Wallet: Software wallets are apps or programs you can download to manage your cryptocurrencies electronically. Because they’re connected to the internet and networks, they’re less secure, but they make it easy to trade your holdings.

Crypto Exchanges: Some cryptocurrency exchanges, such as Coinbase, has built-in storage and store cryptocurrencies on your behalf. But relying on an exchange for storage can be risky, and you may want to consider other solutions for long-term storage.

Is Polkadot A Good Investment?

Although Polkadot might experience a bearish 2023, this indeed can be the right time to invest. Because, In 2021, Polkadot concreted its worth to potential traders and investors with apparent proof.

How?

Polkadot has actually kept its promise as the DOT token went on to hit an all-time high along with ranking well among the crypto peers in 2021. Despite a market crash or a price drop, Polkadot is still estimated to be in the profit zone. 

To cut it short, crypto prediction experts suggest that 2023 is the ideal time to buy DOT tokens, yet, it’s suggestible to do your own research and analysis before you make the call.

Future Of Polkadot Crypto

Polkadot is a fairly young asset of the crypto world,  but it saw a great surge in its popularity among cryptocurrencies in 2021 and 2022. Experts project that Polkadot's position would rise over time and confront other high-ranking cryptos like Ethereum.

Polkadot’s big aspect is its interoperability with various independent blockchains. Interoperability is a broad term used in the crypto space to describe the process of interacting between two or more different blockchains.

Although many networks share similar concepts, Polkadot is the only platform that makes this vision a reality, as it is the first solution that can achieve significantly high interoperability.

The Bottom Line

The Polkadot network aims to be the internet of blockchains by allowing different blockchain networks to connect with each other and exchange data. With its scalable network, robust security features, and cross-chain compatibility, Polkadot is quickly becoming one of the most popular networks for developers and users.

With the implementation of the relay chain, Polkadot is positioning itself as the first truly interoperable blockchain network and a game-changer in the blockchain industry.

Cardano (ADA) can be described as a blockchain platform that’s designed to enable the development of decentralized applications and smart contracts. It is the first blockchain platform to be built on a scientific philosophy and to be developed through peer-reviewed research and scientific rigor. Developed by a global team of leading researchers and engineers, Cardano is set to revolutionize the way we use and interact with blockchain technology. 

This beginner's guide to Cardano will provide you with all the information you need to understand the platform, its features, and how to use it. From its unique consensus algorithm to its native token ADA, this guide will provide you with a comprehensive overview of Cardano. Whether you're a beginner interested in learning more about Cardano or a blockchain expert looking for the latest information, this guide has you covered from end-to-end. 

History of Cardano

Cardano was founded by Charles Hoskinson, who also co-founded Ethereum. However, Cardano is a very different platform from Ethereum regarding its design and goals. Whereas Ethereum is a decentralized application ("dapp") platform designed to power all sorts of different decentralized applications, Cardano is designed to be a "first generation" blockchain platform that can be used to build decentralized applications, as well as other things.

The Cardano Foundation, IOHK, and Emurgo are developing the Cardano platform. The three groups are working together to build the Cardano platform and will hold a stake in the Cardano ecosystem. 

The first phase of Cardano's development began in 2015. At the time, a company called Input-Output (IOHK) was contracted to build the platform. In 2017, IOHK decided to hand over control of the project to the Cardano Foundation and Emurgo. The three partners are now working together to bring Cardano to market. The next development phase has been completed sometime between 2020 and 2021. After that, Cardano emerged as a fully decentralized blockchain.

How Does Cardano Work?

The Cardano platform uses a proof of stake (PoS) consensus algorithm to manage its decentralized network. Proof of stake is a consensus algorithm where the right to add new blocks to the blockchain is determined not by computing power but by coin ownership. In PoS-based blockchains, users must "stake" or "deposit" their coins to add new blocks to the blockchain for a certain amount of time. The more coins a user stakes, the greater the chance that the user will be selected to add a new block. Cardano uses the Ouroboros proof of stake algorithm. 

Ouroboros is the first proof of stake algorithm to be proven secure in a peer-reviewed paper. This unique algorithm uses a "random selection of a catch-up fellow" to create a network with no central authority. In other words, no single person or group can control the network. The algorithm works by randomly selecting a "follower" who can "catch up" with the "leader."

The leader is the person responsible for adding new blocks to the blockchain. The follower has one job: to predict what the leader will do. If the follower is correct, they are promoted to the leader and given a chance to add a new block. If the follower is incorrect, they remain a follower, and another random person is selected to catch up. The Ouroboros algorithm was expected to be completed by June 2020. But, according to recent reports, Charles Hoskinson said that the Ouroboros Genesis implementation will be in 2023.

Cardano's Development and Governance

The development and governance of Cardano are handled by three large organizations:

‍The Cardano Foundation: The Cardano Foundation maintains Cardano's core. This group promotes the platform, manages its marketing and communications, and defends the brand.

IOHK: IOHK leads the team behind Cardano's core. This group is responsible for developing and maintaining the platform's core software and bringing new features to the market.

Emurgo: The third group, Emurgo, brings businesses and investments to the Cardano ecosystem. Emurgo helps businesses integrate with the Cardano network and encourages others to build projects on the Cardano platform.

The functioning of Cardano stands tall because of the highly secured and powerful ecosystem as mentioned above. Now, what is Cardano’s native token ADA?

Cardano's Native Token - ADA

Cardano's native token, ADA, sends money on the Cardano blockchain. It also rewards people who help maintain and build the network. The team behind Cardano has stated that ADA is more than just a token: it also serves as "the fuel that drives the Cardano ecosystem." Cardano’s development team has stated that the platform will be fully decentralized once the network has been around for a few years. Until then, the platform will be maintained by a group of stakeholders who have a vested interest in the platform's success. These stakeholders have a stake in the system and are rewarded with ADA for helping maintain the platform. ‍

There are 3-easy ways to earn ADA: 

• Hosting a node, 
• Providing software assurance, or 
• Contributing to the development of Cardano's software or research.

Apart from these, Cardano’s powerful 3-layered ecosystem makes it reliable and trustworthy. 

The 3-Layered Cardano's Ecosystem

Here are the three secured-layers that constitute Cardano (ADA): 

The Cardano Network: The Cardano network is the blockchain that runs the ADA token and smart contracts. It is maintained by the stakeholders, who receive ADA for their work.

Cardano's core technology: The Cardano core represents the core software that powers the Cardano network. This includes the programming languages used to build decentralized applications and the virtual machine that runs those apps.

All the projects built on top of the Cardano platform: The Cardano projects layer lists all the decentralized applications built on top of the Cardano network.
To top it all, you can also enjoy the benefit of smart contracts on Cardano. 

Smart Contracts On Cardano

Although Cardano is designed to be a dapp platform, it can also be used to build smart contracts. The programming language used to build smart contracts on Cardano is called Haskell and Cardano's virtual machine, called the "Computing Resources And Dispatcher" (CRDD), can execute many programming languages.

Any decentralized application built in any programming language can be hosted on the Cardano network. Cardano's smart contracts are unique because they are the first to be verified by a formal verification tool called the "Industrial Strength Verification" (ISV). This tool will help you confirm whether or not a smart contract is safe to use.

Cardano's Use Cases

Use Case #1: The first use case for Cardano is a decentralized application platform. This means that developers can build apps on top of the Cardano blockchain. These dapps will be able to send and receive ADA and use other features like the ability to create a wallet or sign a transaction. 

Use Case #2: The second use case for Cardano is as a financial asset. Investors can buy and sell ADA on cryptocurrency exchanges, and the token could also represent ownership in a company.

Now, let’s see the security measures that Cardano aims to offer.

Security on Cardano

One of the most common questions about Cardano is how secure it is compared to other blockchains. Cardano does not claim to be more secure than other blockchains but seeks to be as secure as possible. The team behind Cardano has said that one of their goals is to be the "safest and most reliable blockchain." 

One way Cardano strives to be more secure is through its unique design. While other blockchains are designed to do one thing well, Cardano is designed to do many different things less well. Cardano's design means no single platform part is crucial to its operation. If one part of the platform fails, many other parts can take its place. This indicates safety at its best.

Is Cardano a Worthy Investment?

There we are swinging again to whether or not Cardano is a good investment. Let’s check out the latest updates before we decide, shall we?

According to the Cryptoglobe’s Report, ADA’s price might soar up to 100% by 31st January, 2023. ‍Major upgrades are being anticipated by investors to improve DeFi’s significance through its oracles.

So, Cardano is something to look forward to owing to its upcoming features. 

Future of Cardano

Let’s dive a bit further into the future. Cryptopolitan thinks the price of ADA will soar up to $21.35 on an average, with a minimum price of $20.55. Changelly also believes that ADA price will rise, but the website thinks the coin price will only peak at $15.69, with an average of $13.92, similar to the data from Price Prediction. The website’s analysts predict that the coin’s maximum price will be $15.69 with a minimum of $13.55.

Most experts predict that Cardano might see a bright future in 2023. With persistent developments Cardano’s ecosystem has been witnessing, and in the crypto asset market as a whole, Cardano can potentially reach a new high.

The Bottom Line

Cardano aims to be a "first generation" blockchain technology. The platform is being built by a group of organizations, each with a specific role in the project.

The team hopes this design will help Cardano achieve its goal of being the most secure blockchain. The platform uses a unique consensus algorithm, and its native token is storable in various wallets. The token can be used to represent ownership in a company. 

Dogecoin (DOGE) has been making headlines lately as cryptocurrency continues to gain mainstream attention. But what exactly is Dogecoin, and should you consider investing in it? This article aims to explain Dogecoin's basics, how it works, and what you should consider before investing. 

Dogecoin is a cryptocurrency created in 2013 as a joke but has since become a serious player in the cryptocurrency market. At its core, Dogecoin is a decentralized, open-source, peer-to-peer digital currency that allows users to send and receive money with low transaction fees. It is based on the Litecoin protocol, a modified version of Bitcoin. 

Dogecoin has recently gained popularity due to its rapidly-growing user base, low transaction fees, and fast transaction speeds. Despite its novelty, Dogecoin is a legitimate cryptocurrency with many advantages over other currencies, including its security, low costs, and ease of use. Whether or not you choose to invest in Dogecoin is ultimately up to you. But by understanding the basics of the currency and doing your research, you can make an informed decision about whether or not Dogecoin is right for you.

A Quick Overview Of Dogecoin

Dogecoin is a decentralized, open-source, peer-to-peer digital currency that uses Litecoin's Scrypt algorithm as proof of work. Users can send and receive DOGE, while miners can also produce new Dogecoin as a reward for verifying transactions. As of December 2022, there are over 132 billion DOGE tokens in circulation, with a total supply expected to be in the trillions. 

Dogecoin's supply has no limit, meaning it can be mined infinitely. The maximum number of coins that can be mined per day is 100,000,000, while the maximum number of coins that can be mined per hour is 6,000,000. Dogecoin is traded on an average of 50 exchanges, with the highest daily volume being over $560 million. Bitcoin's market capitalization is $320 billion, while Dogecoin stands at $11.96 billion.

How Does Dogecoin Work?

As mentioned above, Dogecoin is a decentralized, open-source, peer-to-peer digital currency that uses Litecoin's Scrypt algorithm as proof of work. The Scrypt algorithm is based on the SHA-256 algorithm, which is used by cryptocurrencies like Bitcoin. The SHA-256 algorithm is parallelized, meaning it can be divided into independent sections and computed simultaneously.

The Scrypt algorithm, on the other hand, is designed to be less predictable. This makes it more difficult for people to calculate a mining reward and for ASICs to be used for mining. This makes mining Dogecoins more decentralized, with users across the globe contributing to the mining process.

Advantages of Dogecoin

The top three advantages of Dogecoin are stated below for your best understanding:

1. Security: Dogecoin's proof-of-work algorithm is much less susceptible to hacking than centralized, third-party payment providers. 

2. Low costs: Dogecoin's low transaction fees and high supply make it a cheaper alternative to services like PayPal. 

3. Fast transaction speeds: Dogecoin's block time of one-and-a-half minutes makes it one of the fastest cryptocurrencies regarding transaction speed.

Disadvantages of Dogecoin

On the other hand, there are a couple of disadvantages that might need your attention, especially if you are looking for an active investment in Dogecoin:

• No proper accountability: While no entity owns or controls Dogecoin, there is no accountability if the cryptocurrency is hacked. This means that no one can reimburse you if your Dogecoins are stolen. 

• Fraud risk: Because Dogecoin is not monitored by a central authority, there is a risk of fraud. This means you need to be extra cautious when investing in Dogecoin and always double-check the legitimacy of any exchange or company you plan to do business with.

Dogecoin's Market Performance

Dogecoin's market performance since its inception has been impressive. In 2022 alone, Dogecoin experienced a 350% increase in value, making it one of the top-performing cryptocurrencies in the last year. While it is difficult to determine what exactly caused this surge in value, there are a few things we can point to.

Dogecoin recently announced that it would partner with a company called Dogewallet to release a new cryptocurrency wallet. This news likely drove Dogecoin's value up, allowing the currency to become even more accessible to its growing user base. Dogecoin has also made headlines due to its sponsorship of a NASCAR race car and a social media tipping campaign.

Now that you know the performance of Dogecoin over the years, let’s look at the simple process of buying and owning it.

How to buy Dogecoin?

Buying Dogecoin is not difficult. Just follow four basic steps:

1. Account Creation: Create an account on a cryptocurrency exchange that lists Dogecoin.
2. Finish your KYC: Complete the identity verification process. Exchanges typically require a scan of an identity document such as a driver's license or passport.
3. Do the Money Transfer: Transfer money from your bank account to the cryptocurrency exchange. The exchange may accept other payment methods, but bank account transfers generally have the lowest fees.
4. Just Click on “Buy”: Once the money is available in your account with the exchange, select the "buy" option to purchase Dogecoin.

Right there, you have it all ready to trade or store Dogecoin. 

The Controversy Around Dogecoin

If you are aware of Dogecoin, then you might know the controversy surrounding it. When Elon Musk first tweeted about it - supporting it - its prices soared to the sky but came down crashing. There is also a $258 million lawsuit against him for this that states:

According to an amended complaint filed in the Manhattan court, Elon, his companies, Tesla and SpaceX, Boring and others intentionally drove up the price of the Dogecoin to more than 36,000% over two years and then let it crash. As a result, the defendants made tens of billions of dollars which came at the expense of other Dogecoin’s investors, while knowing that it has less intrinsic value and will rise up or go down only by marketing. 

This might make you worry about the future of Dogecoin and make you think if you should invest in DOGE or not.

Should You Invest in Dogecoin?

Dogecoin is a cryptocurrency that has experienced impressive growth since its inception. It has several advantages over other cryptocurrencies, including its security, low costs, and ease of use. These advantages make Dogecoin a viable investment option for those who want to try their hand at cryptocurrency but do not want to start with Bitcoin. That said, cryptocurrency trading is risky, and investing in Dogecoin can come with risks. 

There is no guarantee that Dogecoin's value will continue to rise, meaning that there is a risk that you could lose money. Additionally, investing in Dogecoin means you must be comfortable keeping your money in a digital wallet. If you are interested in investing in Dogecoin, be sure to do your research, make an informed decision, and invest only what you can afford to lose.

The Bottom Line

Dogecoin has seen exponential growth followed by a drastic fall due to the fact that its value depends on the market sentiment. One tweet from Musk can spike its price overnight, and, in the long-run it might be a risky investment.

This is just our opinion as per data. Having said that, we would suggest you to always have a complete analysis of the market response to Dogecoin and how it keeps changing with times. This way you will be able to make an informed or rather a wise decision.

Disclaimer

The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website's content as such.

Token Metrics does not recommend that any cryptocurrency should be bought, sold, or held by you. Do your own due diligence and consult your financial advisor before making any investment decisions.