With a market cap of over $20 billion, calling Polkadot’s DOT token “popular” is an understatement. Currently sitting at number 4 on Coinmarketcap.com, DOT is an ambitious project created by some of the top people in the crypto world.
Not only is it popular, but DOT is a proof-of-stake cryptocurrency. That means participants can earn regular rewards by staking – without the need for expensive mining hardware.
Polkadot is offering good returns on your investment at the moment, That’s why we’ve put together this guide to simplify how staking works and how to get started.
What is Polkadot?
The easiest way to think of Polkadot is as an Ethereum competitor. The project aims to support countless features and blockchain types thanks to its open design. The software powering DOT is a relatively new product called Substrate from Parity Technologies.
One of the main selling points behind Polkadot is that it aims to eventually replace or compete with the existing tech oligopoly.
The official website describes the project, suggesting that it will “enable a completely decentralized web where users are in control.” Further, the group behind it says Polkadot “[seeks] to free society from its reliance on a broken web where its large institutions can’t violate our trust.”
Polkadot definitely has a strong pedigree. Unlike other projects that are formed by anonymous individuals, Polkadot’s founders include a co-founder and current CTO of Ethereum, Dr. Gavin Wood. Dr. Wood is also the president of the Web3 Foundation – a group that funds research and development of a decentralized internet.
The project’s native currency, DOT, is currently trading at over $20 each. There are just over 900 million DOT on the market today.
The Fundamentals Of Staking DOT
If you’ve tried your hand at staking before, your experience probably went something like this. You downloaded an official wallet app to your computer, downloaded the entire blockchain, deposited some coins, and…