Polkadot (DOT) for Beginners: A Complete Guide to the Multichain Network

In today’s crypto world, thousands of blockchains exist, each with its own rules, communities, and purposes. But most of them are like islands, unable to exchange information or assets directly. The lack of communication between various networks arguably makes it difficult for users to maximize opportunities on them. 

This is where Polkadot steps in. Built with the vision of becoming the “internet of blockchains,” Polkadot is designed to connect multiple blockchains into a single, unified network. Instead of each blockchain working alone, Polkadot allows them to share security, exchange data, and scale — all without sacrificing their individuality.

Whether you’re a crypto investor, a blockchain developer, or simply curious about the next stage of internet evolution, this article is curated to help you understand all there is about Polkadot. Let’s get right into it. 

What is Polkadot (DOT)? 

Polkadot is a scalable, secure, and decentralized blockchain network designed to connect multiple blockchains into one unified blockchain. In other words, the platform is built to serve as a foundation or host for other blockchain-based projects and applications to build and operate on. This allows for the secure exchange of data and transactions between various blockchains, including public, private, and permissioned chains, as well as oracles. 

Instead of existing in isolation, projects like Ethereum, Solana, and XRP could all run on top of Polkadot. These blockchains can communicate, share security, and exchange data or assets. This is something most blockchains can’t do on their own.

For instance, if both Solana and Ethereum operated on Polkadot, you could purchase a memecoin on Solana and then use or trade it on Ethereum. This architecture enables Polkadot to process transactions in parallel across multiple blockchains. This process enables higher transaction throughput and scalability than single-chain systems. 

Brief History of Polkadot

Polkadot was co-founded by Dr. Gavin Wood, one of the co-founders and former CTO of Ethereum. After writing Ethereum’s first technical specification and creating the Solidity programming language, Wood envisioned something even bigger. 

He imagined not just a single blockchain, but a network of blockchains, each unique, yet connected through a shared foundation. So, in 2016, he laid out the vision in the Polkadot whitepaper. He outlined the concept for a multi-chain framework that could connect many blockchains into one unified network.

Birth of Web3 Foundation & Early Development

To turn this vision into reality, Wood co-founded the Web3 Foundation in 2017, a non-profit focused on driving the development of decentralized web technologies. 

Parity Technologies, another company co-founded by Wood, developed Polkadot. The company is generally focused on building such solutions as well as core protocols and tools.

Funding and Launch

Polkadot’s development was fueled by one of the largest token sales of its era, raising approximately $145 million in 2017.

Yet, the road was not smooth as the project experienced a notorious wallet freeze that locked a large portion of funds. For projects, that would have been the end. But Polkadot pressed forward. 

Fast forward to May 2020. After years of research, coding, and community building, the first Polkadot block went live. This marked the start of its mainnet. Initially, governance was handled by the Web3 Foundation. But true to its ethos of decentralization, control was gradually transferred to the network’s token holders.

Founders

Polkadot was founded by Dr. Gavin Wood, Peter Czaban, alongside Robert Habermeier. Here’s a breakdown of the key information about them: 

Dr. Gavin Wood, recognized as Polkadot’s primary founder and visionary, is best known as a co-founder and former CTO of Ethereum. He created the Solidity programming language, authored the Polkadot whitepaper, and co-founded Parity Technologies. 

Robert Habermeier is the co-founder of Polkadot and a Thiel Fellow with a strong foundation in cryptography and distributed systems. He has been instrumental in the design and development of Polkadot’s core protocol and cryptographic foundations.

Peter Czaban, another co-founder, serves as the Technology Director of the Web3 Foundation. He has a strong background in engineering and research and helped shape Polkadot’s architecture and ecosystem development.

How Does Polkadot Work? 

Polkadot’s design is all about connecting blockchains and making them work together without sacrificing speed or security. It achieves this through a unique architecture and consensus system called Nominated Proof-of-Stake (NPoS). This is combined with its Relay Chain, parachains, and bridges. 

Nominated Proof-of-Stake (NPoS)

Nominated Proof-of-Stake (NPoS) is a variation of Proof-of-Stake (PoS) and is used in Substrate-based blockchains such as Kusama, Edgeware, or Polkadot. It is the process of selecting validators to be allowed to participate in the consensus protocol. 

Polkadot uses NPoS to secure its network and validate transactions. The roles in NPoS include:

Validators are nodes that produce new blocks, validate transactions, and maintain the network. 

• Nominators support validators by staking DOT tokens behind them. They do this by “nominating” validators they trust, essentially staking their DOT tokens behind those validators.

If the nominated validator is chosen to produce blocks and acts honestly, both the validator and the nominator share in the staking rewards.

• Collators maintain parachain nodes and produce parachain blocks, and pass them to validators for final approval.
• Fishermen keep an eye on the network to detect and report malicious activity.

This model is designed to increase decentralization by allowing token holders to influence validator selection. It also improves security as validators are financially incentivized to act honestly. Additionally, NPoS encourages good behavior; validators who act maliciously can have their staked DOT “slashed.”

Relay Chain

This serves as Polkadot’s backbone or core blockchain. It does not run smart contracts or store app-specific data. Instead, it’s optimized for security, consensus, and cross-chain communication.

It connects all the other blockchains (parachains) and ensures they share the same security model. Validators on the Relay Chain confirm blocks from all connected parachains, creating a unified network.

Parachains

Parachains are independent blockchains that run in parallel while connecting to Polkadot’s Relay Chain. Each parachain can have its own token, governance system, and specialized features. This gives developers freedom to design blockchains optimized for their specific needs. For example, some parachains are tailored for DeFi platforms, others for gaming, identity, or supply chain solutions.

Instead of building a blockchain entirely from scratch, developers can use Substrate, Polkadot’s blockchain framework, to launch a parachain more quickly. With Substrate’s deep customization, teams can design governance, tokens, and features tailored specifically for their parachain’s needs.

To connect to the Relay Chain, projects must lease a parachain slot through auctions, which are paid in DOT. Winning a parachain slot grants projects direct access to Polkadot’s shared security and seamless interoperability. This means that every parachain benefits from the strength of the whole network while still maintaining its independence.

Parathreads

They are a pay-as-you-go version of parachains. They are suitable for blockchains that do not need constant connectivity to the Relay Chain. Unlike parachains, which lease long-term slots through auctions, parathreads operate on a pay-as-you-go model, paying fees on a per-block basis.

In other words, Parachains are like permanent residents of the Polkadot network, while Parathreads are more like short-term visitors who only pay when they use the system.

Bridges

Bridges connect Polkadot to external networks like Ethereum, Bitcoin, or Cosmos. This allows tokens, data, and even smart contract calls to move between Polkadot and other blockchains.

Additionally, Bridges help Polkadot achieve true interoperability by connecting to external networks. This approach solves the ‘island problem’ where blockchains would otherwise operate in isolation.

Governance

Polkadot has a built-in governance system that lets DOT holders propose and vote on upgrades. Unlike many blockchains that require “forks” to upgrade, Polkadot can upgrade itself on-chain without splitting into multiple versions.

This makes it highly adaptable as technology and community needs evolve.

Shared Security & Scalability

All parachains benefit equally from the robust security provided by the Relay Chain. They don’t have to bootstrap their own validator set.

Transactions are processed in parallel across parachains, making Polkadot far more scalable than single-chain designs.

Cross-Consensus Messaging (XCM) 

This is Polkadot’s native communication protocol that allows parachains to interact as part of one ecosystem. XCM makes interoperability efficient and trustless.

Polkadot’s Scalability

Scalability remains one of the greatest challenges in blockchain. Most traditional blockchains process transactions on a single chain, which quickly leads to congestion, high fees, and slow throughput. Polkadot solves this problem with its multi-chain architecture.

• Parallel Processing with Parachains

Instead of having just one chain do all the work, Polkadot has multiple parachains running side by side. Each parachain can process its own transactions at the same time as others.

This is similar to adding more lanes to a highway so that more cars (transactions) can move at once without causing traffic jams.

• XCM & Interoperability Without Overhead

As mentioned earlier, XCM allows parachains to communicate directly with each other. This means tokens, data, and instructions can move seamlessly across the network without relying on slow or congested external systems.

By enabling direct chain-to-chain communication, Polkadot avoids the bottlenecks that often occur when blockchains interact through third-party bridges or intermediaries.

• Flexible Access with Parathreads

Not every project needs a permanent parachain slot. Therefore, Parathreads lets smaller or less active projects connect on a pay-per-use basis. This ensures Polkadot can scale to support both high-demand and low-demand blockchains without waste.

• Bridges to External Chains

Bridges extend scalability beyond Polkadot itself by connecting to other ecosystems like Ethereum, Bitcoin, or Cosmos. This allows Polkadot to scale as part of a broader, interconnected blockchain ecosystem.

Polkadot Blockchain

Polkadot blockchain employs a hybrid consensus model that combines two protocols. They are GHOST-based Recursive ANcestor Deriving Prefix Agreement (GRANDPA) and Blind Assignment for Blockchain Extension (BABE). 

GRANDPA serves as the finality gadget for Polkadot’s relay chain. It ensures that once a block is finalized, it’s irreversible and can’t be reorganized. Validators use this gadget to reach fast, network-wide agreement on which blocks are final.

BABE works with GRANDPA to ensure blocks are produced consistently across the network. This protocol assigns block production slots to validators using a randomness-based lottery.

BABE’s combination of randomness and slot allocation creates a secure, decentralized system for consistent block production. It also allows for fork resolution when multiple validators produce blocks for the same slot.

This hybrid approach enables the network to benefit from both rapid block production and provable finality, ensuring security and performance. By separating block production from finality, Polkadot enables both rapid block creation and strong finality guarantees. This aims to overcome many of the trade-offs faced by traditional consensus mechanisms.

The Security Benefits of Polkadot

Polkadot is designed so that every blockchain in its network benefits from the same strong security. This is called shared security, and it offers several key advantages:

• Protection for All Parachains

Even small or new blockchains connected to Polkadot get the same level of validator protection as larger ones. They don’t have to build their own security systems.

• Nominated Proof-of-Stake (NPoS)

Polkadot’s NPoS system encourages good behavior. Validators and nominators collaborate to secure the network. Validators produce and confirm blocks, while nominators back reliable validators with their DOT. 

Both share rewards for honest behavior and risk slashing if they act maliciously. This creates strong economic incentives to keep the network secure.

• Decentralized Validator Network

Hundreds of independent validators work together to secure the entire network. This makes it difficult for any single group to take control.

• Interoperability Without Weakness

Through Cross-Consensus Messaging (XCM), parachains can communicate directly without relying on external bridges, which are often a weak point in blockchain security. This design reduces risks while still enabling interoperability.

• Fishermen for Extra Safety

Special nodes called fishermen constantly watch the network and report dishonest behavior, adding another layer of protection.

Key Features of Polkadot (DOT)

Polkadot was built to solve major blockchain problems like scalability, security, and interoperability. Here are its most important features:

• Shared Security

All parachains connected to the Relay Chain benefit from the same strong validator network. This means even small projects get enterprise-level security without having to build their own.

• Scalability Through Parachains

Polkadot can process many transactions in parallel by running multiple parachains simultaneously. More parachains mean more capacity for the network.

• Interoperability with XCM

Parachains can send data, assets, and messages to each other using the XCM system. Bridges extend this to other blockchains like Bitcoin and Ethereum.

• Nominated Proof-of-Stake (NPoS)

The security of the network is maintained as validators and nominators stake DOT tokens. Bad behavior is punished through slashing, which keeps the network trustworthy.

• Forkless Upgrades

Polkadot can upgrade its code without hard forks. This makes improvements faster and reduces the risk of network splits.

• Customizable Parachains

Each parachain can be tailored to specific needs, from DeFi and gaming to identity and supply chain tracking.

• Decentralized Governance

DOT holders can vote on network upgrades, fee structures, and future developments.

What Makes Polkadot Unique?

Polkadot stands out from other blockchains because it combines several powerful features. It offers scalability with sharding, shared security through its relay chain, flexible consensus, and the ability for multiple blockchains to work together. 

By processing transactions in parallel across different shards, it achieves high throughput. Cross-chain functionality then allows any type of data or asset to move seamlessly between them.

Recall that Polkadot is built using the Substrate blockchain framework. This means other projects using Substrate can quickly launch custom chains that run natively on Polkadot. So, developers can even start building with the framework before they’re ready to deploy on the network. This gives them the flexibility to experiment and prepare at their own pace.

Additionally, Polkadot’s appeal comes from working alongside existing blockchains instead of competing with them. In other words, the project serves as a platform on which diverse blockchain projects coexist and mutually benefit from one another in a highly scalable manner. 

Polkadot also makes it easier for projects by staying compatible with existing platforms like Ethereum. It also avoids the limitations of being stuck on a single blockchain, offering clear community governance and automatic upgrades. This approach has attracted more than 350 projects to its ecosystem, spanning smart contracts, decentralized finance (DeFi), oracles, NFTs, and more.

Notably, Polkadot is not a smart contract platform itself. Instead, it provides the infrastructure for dApp developers to integrate smart contracts across an interoperable network. This has helped Polkadot achieve one of the largest increases in active developers among major protocols.

The DOT Cryptocurrency

DOT is the native cryptocurrency of the Polkadot network. It powers the entire ecosystem and plays a key role in keeping the network secure, functional, and community-driven.

Unlike most cryptocurrencies, DOT is not limited in supply. This is designed to incentivize the network and adjust dynamically based on users’ staking participation rates. The token can inflate by up to 10% per year. As of the time of writing, the token has a circulating supply of over 1.6 billion. 

Validator rewards come from this system, while the rest goes to the network treasury along with transaction fees to keep users motivated to stake. 

Use Cases of the DOT Coin

Governance: DOT holders can vote on important network decisions such as protocol upgrades, fee structures, and development priorities. The voting power is proportional to the amount of DOT a person holds.

Staking for Network Security: DOT is used for staking, which is essential for securing the network. Users can stake their DOT to become validators or nominators, helping to validate transactions and secure the network. 

Stakers earn rewards in the form of newly minted DOT, incentivizing them to participate honestly. Staking also helps to increase the cost of attacking the network, as malicious actors would need to acquire a large amount of DOT to do so. 

Bonding for Parachains

DOT is used to “bond” or reserve slots on the Polkadot Relay Chain, known as parachains. To connect, projects need to bond a certain amount of DOT for a specific period, essentially renting a slot. 

This mechanism ensures that only projects with genuine commitment can connect to the network and prevents spam. 

Transaction Fees

DOT is used to pay fees for transferring assets, interacting with smart contracts, and using Polkadot’s network services. These fees prevent spam and help maintain network efficiency.

DOT Price and Prediction 

At the time of writing, DOT was trading at $3.87 with a market cap of approximately $5.8 billion. The token is currently trading 92.96% below its peak of $54.98 and 43.51% above its lowest price of $2.70. 

While the current market sentiment is bearish, with the Fear & Greed Index showing 56 (Greed), the token is predicted to surge by 0.75%, reaching $ 3.90 by September 18, 2025.

In 2026, DOT is expected to trade within a range of $3.98 to $4.60, with an average price of around $4.11. Based on current levels, this would represent a potential return on investment of about 18.85%.

While these price predictions give an expected DOT price performance, it is essential to note that the volatile nature of the crypto market largely influences its market value. Factors like regulatory development, adoption, and market trends will likely contribute to DOT performance. 

Is Polkadot a Good Investment? 

Polkadot has several features that make it appealing to investors. Since its inception, the project has captured significant adoption. 

However, the decision to invest in the asset ultimately lies with each investor. So, it is vital to conduct thorough research before buying and only invest what you can afford to lose. Like all cryptocurrencies in the volatile market, Polkadot comes with risks. Let’s weigh the pros and cons.

Pros

• Technological Innovation: Polkadot’s focus on interoperability and scalability makes it a strong contender in the crypto market.
• Market Growth: Polkadot consistently hovers within the top 30 cryptocurrencies by market cap, placing it in the “major protocol” tier.
• Strong Ecosystem: Projects like Moonbeam and Kusama demonstrate Polkadot’s thriving developer community.

Cons

• Market Volatility: Like other cryptocurrencies, DOT is subject to price swings.
• Competition: Rivals like Ethereum, Solana, Cosmos, and Avalanche are also pushing interoperability and scalability.
• Technical Complexity: Polkadot’s architecture is robust but complicated, which may slow adoption among developers.
• Regulatory Risks: Future regulations could impact Polkadot’s adoption and value.

Projects Built on Polkadot

Polkadot supports a wide range of projects across various sectors, including DeFi, real-world asset tokenization (RWA), and even decentralized AI. Here’s a breakdown of some prominent projects within the Polkadot ecosystem:

DeFi

Acala: This is a DeFi hub focused on bringing DeFi functionality to Polkadot. It utilizes a dual-protocol approach with Homa (for stake liquidity) and Honzol (for the aUSD stablecoin). 

Moonbeam: This is an EVM-compatible smart contract platform that enables developers to deploy Ethereum-based applications on Polkadot. 

Polkadex: This is a decentralized exchange (DEX) built on Polkadot. It features a non-custodial, order-book model for high-performance trading and benefits from Polkadot’s interoperability.

Reef Finance: A Substrate-based DeFi project focused on aggregating liquidity from various sources. 

Real-World Asset Tokenization (RWA)

Centrifuge: A project for tokenizing real-world assets like real estate and credit, connecting them to the DeFi space. 

Polkadot’s infrastructure (XCM, shared security, scalability): Provides the foundation for RWA projects by enabling interoperability, shared security, and scalable operations. 

Other notable projects include Moonriver, KILT Protocol, Bittensor, Phala Network, and Kusama. 

Polkadot (DOT) Staking Explained

Staking DOT allows holders to earn passive rewards while contributing to the security of the network. As discussed earlier, the platform uses Nominated Proof-of-Stake (NPoS) to secure its network.

In this system, DOT holders can earn rewards by locking or staking their coins to support validators who process transactions and maintain the network. Staked DOT tokens are bonded and locked, requiring an unbonding period before they can be withdrawn, which strengthens network security.

DOT holders can stake either as a validator or as a nominator. Validators run specialized nodes that produce blocks, validate transactions, and ensure network security. On the other hand, nominators choose trusted validators and stake DOT in support of them. They earn a portion of the validator’s rewards.

How to Claim Polkadot (DOT) Staking Rewards

To claim Polkadot (DOT) staking rewards, you will generally need to initiate a claim transaction, as rewards are not automatically transferred to your account. Rewards are distributed at the end of each era (~24 hours). 

However, you don’t need to claim every era. Users can choose to accumulate rewards and claim them later when they feel it’s worthwhile. 

The specific steps will vary depending on whether you are staking directly, through a nomination pool, or using a custodial service. 

For direct staking, you might claim rewards through the Polkadot{.js} UI or your wallet interface. For nomination pools, you will typically claim through the staking dashboard on Polkadot{.js} or your wallet. Custodial services will have their own procedures. 

Direct Staking:

Polkadot{.js} UI:

Navigate to the “Staking” > “Payout” section and click the “Payout” button (or similar, depending on the UI version). 

Wallet (e.g., Nova Wallet, Talisman, Ledger Live):

Open your wallet, navigate to the staking section, and find the “Claim” or “Withdraw” option. 

Nomination Pools

Polkadot{.js} UI:

Go to the “Pool” tab and click “Manage” then “Update Claim Permission” to choose your claiming preference (e.g., anyone can claim, only you can claim). 

Custodial Services

Follow the instructions provided by the specific exchange or platform where you staked your DOT. 

It is important to note that claiming rewards typically involves a transaction fee. So, you might consider claiming when fees are low or bundling multiple claims. Validators may automatically pay out rewards after each era, so you might not need to claim manually.

Polkadot Staking Risks and Best Practices

While staking DOT can be a great way to earn rewards, it comes with risks that every participant should understand.

Risks Associated with Staking DOT

• If your nominated validator acts maliciously or performs poorly, a portion of your staked DOT can be slashed or lost.  
• Once you stake DOT, it’s locked. If you decide to stop staking, you must wait 28 days during the unbonding period before you can transfer or sell it.
• DOT’s market price can fluctuate significantly. Even if you earn staking rewards, the value of your DOT in fiat terms might drop during market downturns.
• Choosing the wrong validator (with downtime, high commission fees, or poor performance) can reduce or even eliminate your rewards.

Good Practices for Safe and Profitable Polkadot Staking 

• Choose reliable validators with low commission rates (5–10%), high uptime, and no history of slashing.
• Diversify your nominations by choosing several validators. Spread your stake to reduce risk.
• Monitor performance regularly by checking validator status periodically to ensure they remain active and reliable.
• Keep your wallet secure by using hardware wallets for maximum security, especially if staking large amounts.
• Only stake the DOT you can afford to lock up for an extended period.

How to Use Polkadot?

To use Polkadot, you’ll first need a compatible wallet to store your DOT. There are options like Talisman, Ledger, Nova Wallet, Fearless, and SubWallet. After setting up your wallet, you’ll need to acquire DOT, either through an exchange or from another user. 

Then, you can manage your DOT, including sending, receiving, and staking, through your chosen wallet and potentially the Polkadot{.js} extension and apps,

As a DOT holder, you can participate in governance by voting on network proposals such as protocol upgrades and parameter changes. Votes are proportional to the amount of DOT you hold and lock for voting.

Polkadot permits users to earn rewards by staking their DOT. You can do this by nominating validators or joining nomination pools. You can also interact with dApps and services built on Polkadot’s parachains. 

Furthermore, you can use Polkadot’s interoperability to move assets or data between connected parachains. Bridges also allow transfers between Polkadot and external blockchains like Ethereum.

Polkadot Wallet

Polkadot wallet is a tool, like an app or device, used to manage DOT.  It allows users to store, send, receive, and manage their DOT securely. It also lets them interact with the Polkadot network and its ecosystem.

Think of it as your access point to the Polkadot network, enabling you to participate in activities like staking, governance, and more. 

Apart from storing DOT, a Polkadot wallet allows you to interact with various applications, services, and features built on the Polkadot network. These include staking, governance, and more.  Polkadot wallets manage your private and public keys, which are essential for signing transactions and accessing your funds on the blockchain. 

Here are some of the most popular Polkadot wallets and the supported devices:

• Nova Wallet (Mobile)
• Talisman (Browser)
• Subwallet (Browser and Mobile)
• Fearless (Browser and Mobile)

Key features and Considerations:

Non-custodial: Many Polkadot wallets are non-custodial, meaning you have full control over your private keys and assets. 

Security: It’s important to choose secure wallets, which often include features like PIN codes, recovery phrases, and secure element chips to protect your funds.

Features: Some wallets offer additional features like staking, NFT management, and access to decentralized applications (dApps). 

Choice of wallet: There are various types of Polkadot wallets, including browser extensions, mobile apps, and hardware wallets, each with its own advantages. 

Interoperability: Polkadot wallets don’t just store DOT.  They also let you move assets and interact across different blockchains in the Polkadot ecosystem. This is possible through Polkadot’s XCM technology, which makes everything work together smoothly.

How to Choose a Polkadot Wallet?

When selecting a Polkadot wallet, prioritize security, ease of use, and features that match your needs, like staking or DeFi. 

Hardware wallets have a reputation of higher security, while software wallets provide convenience. Therefore, carefully consider factors like your experience level and whether you need advanced features to make informed decisions. Some factors to consider are:

Ease of Use: Look for wallets with clear navigation, straightforward instructions, and a clean design.

Mobile and Desktop Support: Consider whether you need a wallet that works on your phone or computer. 

Staking: If you plan to stake your DOT, choose a wallet that supports staking and provides tools for managing your nominations.

DeFi: If you’re interested in decentralized finance (DeFi) applications on Polkadot, look for wallets that integrate well with these platforms. 

Browser Extensions: These allow you to interact with Polkadot dApps directly from your browser. 

Reputation and Reviews: Research the wallet provider and read reviews from other users. 

By carefully considering these factors and doing your research, you can find the perfect Polkadot wallet to suit your needs and keep your DOT secure. 

Polkadot ATM

Polkadot ATMs are crypto machines that let you buy or sell DOT using cash or a debit card. Some ATMs only permit buying, while others allow both buying and selling. You can use your existing wallet or create one at the machine, and it’s a good idea to keep the receipt. 

Fees are usually higher than online exchanges, but as more ATMs appear worldwide, costs may go down. Since Polkadot is part of this current generation of digital assets, not all crypto ATMs support DOT yet. However, many will likely add it in the future. 

How to Purchase DOT Coins

To purchase Polkadot (DOT) coins, you’ll need to use a cryptocurrency exchange that supports DOT trading. Here’s a step-by-step guide to buying DOT on Binance:

• Create a Binance Account – Sign up on the Binance website or app and complete identity verification (KYC). If you already have an account, log in.
• Navigate to “Buy Crypto” – Click on the “Buy Crypto” button to see the available purchase options in your country.
• Choose a Payment Method – You can buy DOT using fiat currency via credit/debit card, bank transfer, or peer-to-peer (P2P) trading. Alternatively, you can buy USDT or USDC first and then trade it for DOT. 
• Confirm Your Order – Review the payment details, check for any applicable fees, and complete your purchase.
• Secure Your DOT – You can store your DOT on the exchange’s wallet or transfer it to a personal cryptocurrency wallet for added security. 

Frequently Asked Questions (FAQs) about Polkadot

Who created Polkadot?

Polkadot was co-founded by Dr. Gavin Wood, Robert Habermeier, and Peter Czaban.

What does Polkadot DOT do?

Polkadot (DOT) is the native token of the Polkadot network. It acts as the network’s utility token, used for governance, staking, and bonding new chains. 

How much is 1 DOT worth? 

At the time of writing, DOT trades at $3.77.

Is DOT an ERC-20 token?

No, DOT is not an ERC-20 token. Initially, DOT was launched as an ERC-20 token in 2017 to help fund the development of the Polkadot project. Today, the native DOT token runs on the Polkadot Relay Chain, which is separate from Ethereum.

Can I mine Polkadot?

No, Polkadot (DOT) cannot be mined in the traditional sense. Instead of using the PoW mechanism like Bitcoin, Polkadot uses the NPoS consensus mechanism. This means new DOT tokens are not created through computational mining, but through staking.

How many Polkadot (DOT) are in circulation?

As of August 19, 2025, there are approximately 1.52 billion DOT tokens in circulation, according to data from CoinGecko. 

Can I stake Polkadot to earn money? 

Yes. Holders of DOT can earn rewards by staking the token. 

When did the Polkadot testnet launch? 

Polkadot’s initial testnet, called Rococo, was launched in August 2020 to test the network’s cross-communication protocols between shards specifically. Before Rococo, Polkadot also had a canary network called Kusama, which was launched in September 2019. 

To Sum It Up (Conclusion)

Polkadot is not just another blockchain. It’s an ambitious network designed to connect many blockchains into a unified, secure, and scalable ecosystem. By combining interoperability, shared security, and customizable parachains, it offers a powerful foundation for the future of decentralized applications and Web3.

Its technology is impressive, and the growing list of projects built on Polkadot shows strong developer interest. For users, Polkadot offers a glimpse into a future where different blockchains can seamlessly communicate and work together. For investors, it presents high potential. 

However, the road ahead is competitive and volatile, like any cryptocurrency. Therefore, before investing in Polkadot, do your research, manage risks wisely, and never invest more than you can afford to lose. And if you have invested in the project already, stay informed to make well-thought-out decisions to navigate space successfully.

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