When witnessing the ongoing DeFi craze, which is already in full swing but will eventually run out of steam, a foresighted trader and investor should already be on the lookout for an altcoin that bears the promise of astronomical gains. And that next big thing could be Polkadot (DOT), a coin issued by the blockchain project called the Web3 Foundation that created a sharded protocol that offers drastic improvements in terms of interoperability and scalability, the Achilles’ hill of this otherwise revolutionary technology that is severely hampering the process of mass adoption.
Analysis of DOT’s fundamentals
Without delving too deep into technicalities, let’s just say that Polkadot represents a blockchain network that offers all-encompassing interoperability (it can transfer not only tokens but also digital assets and data between different blockchain, including the non-Ethereum ones) and scalability that is ensured by the dispensation of transactions across multiple blockchains.
The project also places special emphasis on having a unique governance model where each blockchain is governed separately while being a part of a common security system. The Polkadot token itself has three core functions: staking, network governance, and bonding.