How Does Polkadot Simplify the Blockchain with Better Functionality?

Blockchain technology is secure and has many applications like money transfers, financial exchanges, lending, insurance, personal information, real estate, etc. Unfortunately, many find blockchain technology too complex to manage and understand, slowing its adoption. 

However, the good news is that several new updates like Polkadot aim to simplify the blockchain. In this blog post, you will get an opportunity to learn what is Polkadot (DOT) is and how it makes things better. 

How Does Polkadot Simplify the Blockchain with Better Functionality?

Understanding Problems With Blockchain

As per market data, there are around 1000 blockchains with four types of networks. While every blockchain works on the same principle, its underlying technology is different and causes interoperability, data privacy, scalability, and governance problems. 

How Does Polkadot Aim to Make Things Better?

Polkadot is an advanced protocol that aims to connect different blockchains in a unified Polkadot network. The Polkadot protocol was designed to create a decentralized network where the control lies with the users. The goal of the Polkadot is to enable different blockchains to connect to the Polkadot network and communicate with each other.  

Now that you got the answer to the question, what is Polkadot (DOT)? You will be able to understand the problems solved by this network protocol. 

Scalability

The rising popularity of cryptocurrencies has led to an increase in trade volumes. Most blockchains run in isolation, and they can only process limited transactions at any given time. Polkadot enables the connection of multiple blockchains to its network. Blockchains can run in parallel, allowing users to eliminate the bottlenecks occurring on blockchains where transactions are completed one by one. The arrival of Polkadot has improved the scalability of blockchains. 

Specialize

Each blockchain that exists today was created for a specific purpose. The creators of blockchain technology are always in a dilemma regarding which features to include and which ones to omit while developing blockchain technology. 

Also, blockchains cannot have all features due to their limited resources, and there is always a possibility of incorrect codes that can bring the whole blockchain network down. Therefore, many blockchain developers limit the features in their blockchains to avoid technical issues. 

The Polkadot blockchain technology allows blockchains to run with their special use cases, and they can function with their features in all environments. When these blockchains connect to Polkadot, they outsource their features to others and use them when connected to the Polkadot network. 

Interoperability

As mentioned earlier, most blockchains are designed to function as standalone systems. Hence, they exchange information or communicate with each other directly. However, Polkadot aims to simplify things by providing cross-chain connectivity and interoperability. 

When blockchains are connected to the Polkadot ecosystem, they can exchange information and features without depending on their centralized service providers. 

Polkadot allows them to exchange information and opens doors to access new services. A good example of interoperability is a De-Fi service that can receive data from an oracle chain like stock or commodity prices. 

Self-Govern

The Polkadot ecosystem aims to give the users full control of blockchains. When a blockchain connects to the Polkadot network, the DOT token holders get the right to vote on a referendum no matter where the voting takes place. 

Their stake in the blockchains weighs all DOT token holders, and they can decide by vote. The agreed-upon changes are automatically applied to the blockchain network. 

The Polkadot is a revolutionary protocol that connects blockchains and allows users to combine the blockchains technology and extend its functionality.