Top 4 Reasons You Should Buy Polkadot Coin - EXPLAINOPEDIA
Polkadot

Top 4 Reasons You Should Buy Polkadot Coin

by Alison Davis

Polkadot Bitcoin paved the foundations for the behemoth cryptocurrency. Although it was the first crypto coin introduced to the market, it wasn’t perfect. Many inconsistencies needed improvements and modifications, and that’s why many other altcoins started becoming very popular very soon as they solved the problems holding the crypto industry back. And Polkadot is one of those altcoins that have solved a major crypto interoperability problem.

Unlike its predecessor, ETH, which could perform only one transaction at a time, Polkadot or Dot leverages parallel chains or parachains of blockchains series that can complete multiple transactions simultaneously. As more transactions happen per unit, it significantly reduces the transaction cost. That is one of the top reasons why more and more investors and traders buy Polkadot. To help you understand further, here are four reasons to invest in Polkadot.

  1. It Solves The Interoperability Problem

Suppose you walk into a room of strangers where no one speaks your language. It would be challenging for you to communicate with anyone and exchange ideas and thoughts. There has to be some common channel or language between you and the other person to create better communication, and the same is with blockchain.

Projects based on different blockchain technologies cannot transact information with other projects unless there are bridges. These inter-project bridges significantly increase the project cost and time. Polkadot solves this interoperability problem by allowing communication from a private project to a public project and vice versa without additional cost.

2. Self-Governance

Only the miners have the privilege to alter the protocol and define the rules. But the DOT coin has changed that. Until now, only the miners had the right to modify, upgrade and fix the protocol. But DOT coin allows the token holders to have a say and right in the process. The DOT holders even have the privileged that were exclusive to miners earlier. The DOT holder communities have the right to govern the network and also are an esteemed part of the ecosystem.

3. High Market Cap

Along with all the exceptional features, the DOT coin is financially robust. The market cap of the DOT is $24 billion, which is an excellent indicator of its stability. The higher market cap ensures that it stays stable despite market fluctuations. The higher market cap and ability to sustain market fluctuations make DOT a low-risk investment and why more investors buy Polkadot than ever. Over the span of months, the coin has sustained its value despite some significant market shocks.

4. It Allows Specializations and Customization

Every blockchain is different and has distinct functions. All of these functionalities cannot be supported by a single platform. It can not only raise lots of non-compatibility issues but can severely affect stability. Thankfully, the Polkadot protocol offers a Substrate Development Framework so the participating blockchains can create customizations in their platform and be compatible with other blockchains or a particular use case.

The ability to simultaneously operate different blockchains on one platform allows the developers to shift their focus to high-quality code development. That’s why more developers and users are turning towards Polkadot. The increased interest of coders and users has drawn more investors as well.

These are enough valid arguments to convince you why buying Polkadot makes more sense as an investor. Its lower token price is also a good reason the DOT coin would be a great addition to your crypto portfolio.

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