Polka dot ($DOT), according to the popular crypto analysis and market commentary show Coin Bureau, could surprise investors as one of the top performing assets of 2022.
Using information from the Polkadot website, here is an overview of Polkadot:
“Polkadot is a network protocol that allows any data to be moved across blockchains, not only tokens.” Polkadot is thus a genuine multi-chain application environment, including features such as cross-chain registries and cross-chain computation.
Polkadot can move data between public, permissionless blockchains and private, permissioned blockchains.“This makes it possible to build applications that get permissioned data from a private blockchain and use it on a public blockchain.
For instance, a school’s private, permissioned academic records chain could send a proof to a degree-verification smart contract on a public chain.“
Polkadot is a “network of heterogeneous blockchains termed parachains and parathreads” that “unites a network of heterogeneous blockchains.”
The Polkadot Relay Chain connects and secures these chains, and they can “also connect with external networks via bridges.”
What Binance Academy Has To Say Regarding Polkadot’s Para Chains And Relay Chain
An individual blockchain in the Polkadot ecosystem is called a parachain (parallel blockchain), while the main chain is called the Relay Chain. The idea is that parachains and the Relay Chain can easily exchange information at all times.
You could think of parachains as being similar to individual shards in the planned implementation of ETH 2.0.
“Any developer, company, or individual can spin up their custom parachain through Substrate, a framework for creating cryptocurrencies and decentralized systems.
Once the custom chain is connected to the Polkadot network, it becomes interoperable with all other parachains on the network. ”
Coin Bureau’s host “Guy” said in a recent YouTube update that Polkadot has a lot of potential this year, saying, “DOT might become one of the top cryptos of 2022.”
Guy contended that $DOT had failed to achieve the 2021 target price point that most analysts had predicted, implying a bullish rollover into this year. Polkadot has managed to issue a number of updates and new improvements despite being down 50% in price since last October, which should figure into the project’s value moving forward.
In his statement Guy noted that the cryptocurrency markets were down across the board, causing wealth to flow from altcoins to Bitcoin. However, institutional interest has increased in recent weeks, giving the market a little boost, according to Guy.
Finally, he predicted that Polkadot’s price could more than triple if demand picks up.