Polkadot is an open-source sharded multichain protocol that connects and secures a network of specialized blockchains, facilitating the cross-chain transfer of any data or asset types, not just tokens, thereby allowing blockchains to be interoperable with each other. Polkadot was designed to provide a foundation for a decentralized internet of blockchains, also known as Web3.

Polkadot’s native DOT token serves three clear purposes: staking for operations and security, facilitating network governance, and bonding tokens to connect parachains .

Polkadot has four core components:

• Relay Chain: Polkadot’s “heart,” helping to create consensus, interoperability, and shared security across the network of different chains;
• Parachains: independent chains that can have their own tokens and be optimized for specific use cases;
• Parathreads: similar to parachains but with flexible connectivity based on an economical pay-as-you-go model;
• Bridges: allow parachains and parathreads to connect and communicate with external blockchains like Ethereum.

The Polkadot network is also highly flexible and adaptive, allowing the sharing of information and functionality between participants. Polkadot can be automatically upgraded without the need for a fork in order to implement new features or remove bugs.

Polkadot’s first initial coin offering (ICO) was held in October 2017, and the Polkadot price was $0.29, with 2.24 million tokens offered. The second ICO was held in July 2020, and the Polkadot price offered was $1.25, and 342,080 DOT tokens were sold.

The top exchanges for Polkadot (DOT) trading are currently Binance, Huobi Global, OKEx, Coinbase, KuCoin, and more.