Polkadot is a cryptocurrency that has been designed to perform transactions more privately and efficiently. Polkadot builds on the success of the Ethereum project while introducing unique innovations. This digital currency was founded by Gavin Wood in 2016, a co-founder of Ethereum.

One of the primary innovations introduced with Polkadot is the operation of two types of blockchains. There is a main network, known as a relay chain, in which transactions are permanent, as well as user-created parachains. The parachains feed into the main blockchain, allowing parachain transactions to inherit the security of the main chain. Parachains can be customised to suit many different uses. Meant to empower developers to build better solutions, Polkadot makes it easier to connect and create decentralised institutions, services and applications offering inherent value. While the relay chain does not inherently support smart contracts, the parachains do.

Available for purchase through cryptocurrency exchanges, Polkadot is listed using the abbreviation DOT when traded. Polkadot uses an auction system to assign parachains to new projects. As of 20 February 2022, there are 10 parachains that have been auctioned off. Some of the more interesting projects that have been awarded parachains include using the platform to fund commercial real estate development and support for Bitcoin use in decentralised finance applications.

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