Polkadot is a blockchain platform designed to let multiple independent blockchains, called parachains, connect to a central chain and communicate with one another. This addresses a common limitation in the blockchain space, where most networks operate in isolation and cannot easily exchange data or assets with other chains.
Each parachain can be customized for a specific purpose, such as a particular DeFi application or gaming platform, while still benefiting from the shared security provided by Polkadot's central Relay Chain. This shared security model means individual parachains do not need to build their own validator network entirely from scratch.
The native token, DOT, is used for network governance, allowing holders to vote on proposed changes, as well as for securing a parachain slot through a process called staking or, historically, through auctions.
Frequently Asked Questions
What is a parachain?
A parachain is an independent blockchain that connects to Polkadot's main Relay Chain, gaining access to shared security and interoperability with other parachains, while still maintaining its own specialized functionality.
What is DOT used for?
DOT is used for staking to help secure the network, for participating in governance votes on protocol changes, and historically for bonding to secure a parachain slot on the network.
