Interested in Speckle (CCC:DOT-USD) should start with a 10,000 foot view. It is this kind of understanding that makes it interesting to watch. Its wide range of uses makes it fundamentally different from scam coins that get rich quick.
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Let’s get to the broader ideas behind polkadot, which are very well worth understanding.
When trying to understand a cryptocurrency, it is worth simply considering its utility. What a token does or how a crypto project is applied matters. Remember, these are emerging technologies.
We understand what the internet is today. But before its inception, it was those who first saw its worth who capitalized the most. The same goes for any technology. The more you understand about its benefits, and the sooner, the more you can gain.
In the case of Polkadot, that means understanding that it could be a fundamental part of the larger cryptocurrency history.
The best way I’ve heard is that Polkadot HTML is analog. HTML, or HyperText Markup Language, is the code and symbols that determine how files are displayed on the Internet. It tells your browser how the data encrypted in it will be displayed. This article states: “HTML enables sites, browsers and servers to interact with one another. “
As Polkadot states on its website, “Polkadot is a network protocol that allows any data – not just tokens – to be transmitted over blockchains.”
This does not mean that Polkadot is similar to HTML in that it does exactly the same things. Rather, this means that Polkadot can move data from private blockchains to public blockchains.
This allows applications to be built using legitimate data that is then sent to a public chain. So if a financial company wanted to build an app based on a range of private data, it could do it through DOT and then share it without permission.
In this theoretical example, developers would simply write the code in the Rust, C ++, and Golang languages, resulting in an application that shares data across blockchains.
No fraud coin
In other words, interoperability is the be-all and end-all. This is also what sets Polkadot apart from fraudulent coins, as I mentioned earlier.
If you are thinking about investing in a cryptocurrency, you should at least look for its utility. the Shiba Inus (CCC:SHIB-USD) and Dogecoins (CCC:DOGE-USD) the crypto world is missing. These projects get famous first and then try to get benefit from their projects. Projects like Polkadot do the opposite: build utility first, then find fame.
The former may be a great trading tool, but it really is little else. The latter is a much better long-term investment. Look for cryptocurrencies with a plan. Polkadot has that.
Polkadot has drawn up a roadmap for its future and is currently in the parachain rollout phase.
Reference to the website “Parachains are the final piece of core functionality provided as described in the Polkadot whitepaper and will enable Polkadot to implement its scalable multi-chain architecture. After a phase of testing, optimizing and auditing, Parachains will be ready for launch on Polkadot. “
In fact, these parachets are now known. Because the auction winners for the first slots on Polkadot’s main blockchain have already been announced. The winners are “Focus on a variety of topics from decentralized financing to investments and loans to smart contracting. These are Acala, Moonbeam, Parallel Finance, Astar and Clover. You can rent a slot in Polkadot’s Relay Chain for up to 96 weeks at a time. “
What to do with polkadot
The rubber is on its way for Polkadot. No one can say whether it will be successful or not, but the case for investing based on its utility is clear.
At the time of this writing, Alex Sirois held (neither directly nor indirectly) positions in the securities discussed in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publishing guidelines.
Alex Sirois is a freelance worker for InvestorPlace whose personal equity style is geared towards long-term, wealth-building, buy-and-hold stocks. Having worked in a variety of industries from e-commerce to translation to education and completing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.