Crypto Spotlight: DOT

With so many new tokens joining Wirex, it can be hard to keep track. Don’t worry, we’ve got you. Our crypto spotlights help you learn everything you need to know about our new arrivals, one by one. This week, Polkadot (DOT).

What is DOT?

You know the drill by now. DOT is the native token of Polkadot, an ambitious multi-chain protocol that aims to facilitate the transfer of different assets – not just tokens – between distinct blockchains. As of November 2021, DOT is the 8th largest cryptocurrency by market capitalisation.

Who created DOT?

Polkadot is the brainchild of Dr. Gavin Wood, Robert Habermeier and Peter Czaban, who comprise the Switzerland-based Web3 Foundation. Its stated goal is to create a fully-decentralised, private web run entirely by user consensus.

What does it do?

DOT is an integral and multi-purpose part of the Polkadot protocol. Not only does it enable operations and network governance, it also helps create ‘parachains’, or parallel blockchains – a key Polkadot feature that allows for transactions to be processed simultaneously on several different blockchains.

What makes it unique?

Processing transactions on multiple blockchains at the same time means excellent processing power and scalability, but what really sets Polkadot apart from the crowd is its adaptability. The protocol allows for custom blockchains to be easily built and connected with the Polkadot network with an emphasis on swift, simple information and functionality sharing between participants.