Polkadot is a blockchain protocol for a new internet, designed to address security, stability, and scale issues as the world move beyond consensus-as-a-service providers such as Proof-of-Work and towards open, global networks secured by stakeholders’ governance.
Polkadot has been developed by Web3 Foundation, a non-profit technology development company established to foster the future of decentralized web technologies in an open environment that gives resilience against collapse.
What is Polkadot Token (polkd)?
Polkadot token (symbol: Polkadot or DOT) is the governance token for Polka, which holds value in exchange for validating transactions and securing the network. The use of DOT as a stake to reserve validator nodes entitles their owners to compensation in the form of transaction fees, block rewards, security deposits, and other incentives built into the protocol’s mechanism design. The issuance model will be Proof-of-Stake with delayed finalization.
The Polkadot token will be used as a stake to secure the network and the governance of protocol amendments. A minimum balance of 20 tokens is required on all nodes that want to validate blocks (staking) or vote on protocol amendments (voting). This is known as the validation deposit.
If a node stops signing blocks correctly, their deposited DOTs are forfeited; stakers may voluntarily forfeit deposits at any point in time by withdrawing them from their wallet. This process is referred to as slashing. To discourage hasty or rash decisions by validators regarding protocol changes, finalizing protocol amendments will require a supermajority of 80% (+1) approval via votes, where DOT balances.
Check out: How to Become A Blockchain Expert?
Buying in Malaysia
If you are wondering how to buy polkadot coins in Malaysia, read on to get an overall understanding. To invest in Polkadot, you’ll need to allow your Ethereum address. Details about how to do this can be found on the official website. Likely, details for its TDE will also be available here at around the same time.
To buy a polka dot coin in Malaysia, you may have to pass a KYC/AML check where you will need to provide some form of identification documentation such as a passport or driver’s license.
Benefits and cautions to take while buying Polkadot in Malaysia
There are several benefits to this brand-new protocol. It claims to solve the issues surrounding blockchain governance, interoperability, and scalability. Polkadot will use parachains (blockchain networks) which would be able to confirm transactions faster than Ethereum can do so at present.
Polkadot is also based on the Proof-of-Stake consensus model, which suggests that no miners’ reward is created to confirm transactions within a network. This might seem like a disadvantage in profitability, but it doesn’t affect any existing uses cases since the users’ payments to validators are provided.
The success of this project depends on many factors, including community participation and adoption, software development progress, and legal hurdles. As a result, the team has a lot to do in the coming months.
Polkadot is viewed as one of the most anticipated ICOs, but it also comes with risks like any other. If you’re considering investing in Polkadot, make sure that you conduct your research and carefully read its whitepaper before doing so. You should also examine every component of the project since this will help you know if it’s worth investing in or not.
By following these simple steps mentioned above about buying polkadot in Malaysia, we believe that you can invest without worrying too much about the potential problems that might arise from buying an ICO at the wrong time. Happy trading!
How much money will I need?
It’s difficult to say how much you’ll need because none of us knows precisely what this coin will be worth at the time when it goes live. However, we can look at the initial token sale, where a total of 10 million DOT tokens were released, representing 50% of all the tokens that will ever exist. The remaining 50% will be mined in the future or reserved for Polkadot’s ecosystem.
In case something goes wrong during the ICO, you might end up losing your money altogether. Furthermore, if you invest too much and don’t see any positive results at one point, you might get discouraged and feel like reinvesting in this particular ICO is not worth it.
Check out: Blockchain Technology, Cryptocurrency Trading & Digital assets
Source@techsaa: Read more at: Technology Week Blog
