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How To Buy Polkadot(DOT) For Beginners?

What Is Polkadot

Polkadot is a protocol that connects blockchains — allowing value and data to be sent across previously incompatible networks (Bitcoin and Ethereum, for example). It’s also designed to be fast and scalable. The DOT token is used for staking and governance, it can be bought or sold on Coinbase and other exchanges.

The Polkadot protocol is designed to allow unrelated blockchains to securely talk to each other, so that value or data can flow between, say, the Ethereum and Bitcoin blockchains without any intermediary. It’s also designed to be speedy and scalable, via the use of many parallel blockchains (or “parachains”) that take much of the processing demand off of the main blockchain.   

 

What is DOT?

DOT is the native token of the Polkadot network in a similar way that BTC is the native token of Bitcoin or Ether is the native token of the Ethereum blockchain.

 

What is DOT used for in Polkadot?

The Polkadot token (DOT) serves two main functions within the Polkadot network: it’s a governance token, which allows holders to have a say in the future of the protocol, and it’s used for staking, which is the way the Polkadot network verifies transactions and issues new DOT. DOT can be bought and sold on exchanges as part of your investment strategy.


lDOT for Governance

The first function of DOT is to entitle holders to control the governance of the platform. Some functions that are included under the governance mechanism include determining the fees of the network, the addition or removal of parachains, and exceptional events such as upgrades and fixes to the Polkadot platform.


lDOT for Consensus

DOT will be used to facilitate the consensus mechanism that underpins Polkadot. For the platform to function and allow for valid transactions to be carried out across parachains, Polkadot will rely on holders of DOT to play active roles. Participants will put their DOT at risk (via staking) to perform these functions. The staking of DOT acts as a disincentive for malicious participants who will be punished by the network by getting their DOT slashed.


lDOT for Parachain Slot Acquisition

DOT will have the ability to be locked for a duration in order to secure a parachain slot in the network. The DOT will be reserved during the slot lease and will be released back to the account that reserved them after the duration of the lease has elapsed and the parachain is removed.


Where To Buy DOT?

DOT token is listed and supported by the world’s leading exchanges such as Coinbase, Binance, FTX and Bitfinex.

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Disclaimer: Cryptocurrency investment is subject to high market risk. TOPSINMETA is not responsible for any of your trading losses. The opinions and statements made above should not be considered financial advice.