
## What is Polkadot (DOT)?
Polkadot is the only next-generation blockchain protocol connecting multiple specialized blockchains, enabling them to transfer messages and value in a trust-free fashion. The internet was designed by Polkadot so that our data belongs to us; it does not lie upon a server owned by a company. The native cryptocurrency of the Polkadot network is DOT, with uses in governance, staking, and bonding.

### What Problem Does Polkadot (DOT) Solve?
Polkadot aims to solve several salient problems within the blockchain and cryptocurrency space:
Interoperability: Rejecting the siloed nature of current blockchain networks by enabling different blockchains to communicate and share information.
Scalability: Allowing many blockchains to process numerous transactions in parallel which facilitates Parachain and hence increases the overall scalability of a network.
Customizability: Using the Polkadot Substrate framework, developers will be able to create custom blockchains that are tailored for specific use cases and applications.
Security: Polkadot shares security among all chains connected to it. This pools security across all interconnected blockchains so that, in each given blockchain, the utmost protection against attacks is guaranteed.

### Why Does the Crypto Market Need Polkadot (DOT)?
The crypto market will more than benefit from its interoperability, bridging the gap between different blockchains, allows for seamless interaction and collaboration in the growth of DeFi and other blockchain applications.
Efficient: Polkadot is designed to offer an innovative scaling solution that will eliminate the congestion of individual blockchains, avoiding slow but costly transactions.
Innovation Catalyst: With a platform for custom blockchains, Polkadot provides the building space for newer crypto-ecosystem applications and services to be developed.

### History of Polkadot (DOT)
Polkadot was created in 2016 by Dr. Gavin Wood, co-founder and former CTO of Ethereum, who imagined a more scalable, interoperable, and flexible blockchain platform. This brought in $145 million during an ICO conducted in October 2017. Despite suffering a significant setback when the wallet Polkadot used for the ICO was hacked, it continued building and launched its mainnet in May 2020.

### Who Created Polkadot (DOT)?
Polkadot was founded by Dr. Gavin Wood, founder of the Solidity programming language that powers Ethereum. The development of Polkadot is managed by Web3 Foundation, which funds protocol research and development. Parity Technologies is a blockchain infrastructure company cofounded by Wood, concerned with the leading technical development of Polkadot.

#### What Technology Does Polkadot (DOT) Use and How Does It Work?
Relay Chain: The central chain that does all the network maintenance and consensus on security issues.
Parachains: Independent blockchains hosted parallel to the Relay Chain, benefiting from Polkadot's shared security.
Bridges: Specialized links connecting Polkadot to other blockchain networks, like Ethereum and Bitcoin, that allow cross-chain interoperability.
Nominated Proof of Stake (NPoS): The consensus mechanism used by Polkadot, in which nominators back validators with their stake to safely secure and efficiently run networks.

### What Affects Polkadot (DOT) Price?
Below are some factors that may influence the price of DOT:
**Market Sentiment:** Positive developments, partnerships, and technological advancements within the Polkadot ecosystem can drive up the cost of DOT.
**Adoption and Usage:** In light of the increasing number of applications and projects being launched on the Polkadot network, there will be a subsequent increase in its usage, which should help drive the demand for DOT.
**Regulatory Environment:** Changes in the regulatory environment about cryptocurrencies bear a bearing on investor confidence and price movements of DOT.
M**acroeconomic Trends:** General economic trends, such as interest rates and inflation, may impact the price of DOT.

#### What is the Current Number of DOT Tokens in Circulation?
Among the most recent critical fundamental data, it is estimated that there are around 1.3 billion DOT tokens in circulation. In August 2020, Polkadot underwent redenomination whereby the total supply was changed from 10 million to 1 billion without altering the value held by each account holder. 

#### What is the Maximum Supply of Polkadot (DOT)?
Polkadot does not specify a fixed maximum supply. The network, therefore, introduces new DOT tokens with an inflationary model that incentivizes network participation, especially in staking and governance mechanisms. At a current rate of around 10% annually, DOT is consistently supplied to incentivize stakeholders to secure the chain and its governance.

### What is Polkadot (DOT) Utility?
A feature crucial to the Polkadot network itself allows DOTs to be used:
Governance: DOT holders are empowered to vote on network upgrades, changes, and proposals.
Staking: DOT holders can stake their coins to have a chance of earning some rewards and supporting the network.
Bonding: DOT is used to release new parachains into the Polkadot network to make sure the activity is alive.

## Tokenomics of Polkadot (DOT)
Tokenomics was organized to be secure yet scalable, Polkadot's tokenomics were purposely structured.
Inflationary Model: Instead of mining rewards, the case in Polkadot is an inflationary model for issuing tokens that further incentivize and award network security.
Staking Rewards: DOT holders receive staking rewards by participating in the NPoS agreement of the network.
Voting Rights: The holder of the DOT has voting rights and can be part of the governance decisions on how to influence the future of the network.

#### What is the All-Time High and All-Time Low for Polkadot (DOT)?
Polkadot hit an all-time high of around $55.08 in November 2021, driven by increased adoption worldwide and upward sentiment that engulfed most of the cryptocurrency markets. Its all-time low was at about $2.70 back in August 2020, which was soon after redenomination.

### Where to Buy Polkadot (DOT)?
DOT can be purchased on various major cryptocurrency exchanges, including:
Binance
Coinbase
Kraken
Huobi
Bitfinex
All these exchanges support DOT trading to fiat currency (USD, EUR) and leading cryptocurrencies (BTC, ETH).

#### Who Invested in Polkadot (DOT) at an Early Stage?
The very first investment into Polkadot came during its ICO, raising $145 million. An "equal balance" of venture capital firms, institutional investors, and individuals who believed in Polkadot's vision to "build more connected and scalable chains out there."

### What Are the Revenue Streams of Polkadot (DOT)?
Revenue Streams:
**Transaction Charges:** Collected from transactions processed on the Polkadot network.
**Staking Rewards:** Distributed to speakers who hold DOTs and stake their tokens in participating toward the network's security.
**Parachain Slot Auctions:** Projects pay for the right to place their parachain in Polkadot's relay chain to obtain security within the ecosystem, and by that, they can operate.


Polkadot is a platform still pushing toward more innovation and expanding its ecosystem while establishing a more scalable, interoperable blockchain architecture secure for the future.



