Polkadot (blockchain platform)

Last updated
Polkadot Network
Polkadot Logo.png
Denominations
CodeDOT
Development
Original author(s) Gavin Wood
White paper Polkadot White Paper
Implementation(s) polkadot , gossamer
Initial releaseMay 26, 2020
Code repository github.com/paritytech/polkadot-sdk
Development statusActive
Written in Rust
Operating system Cross-platform
Source model Open source
License GPL-3.0
Ledger
Timestamping scheme Proof of stake
Website
Website polkadot.network

Polkadot is a decentralized, nominated proof-of-stake blockchain with smart contract functionality. The cryptocurrency native to the blockchain is the DOT.

Contents

It is designed to allow blockchains to exchange messages and perform transactions with each other without a trusted third-party. This allows for cross-chain transfers of data or assets, between different blockchains, and for decentralized applications (DApps) to be built using the Polkadot Network.

History

Gavin Wood, founder of Polkadot. Gavin Wood.jpg
Gavin Wood, founder of Polkadot.

Founding and ICO (2016–2019)

Polkadot was created by the Ethereum co-founder Gavin Wood, [1] Robert Habermeier and Peter Czaban. [2] The white paper for Polkadot was published by Wood in 2016. [2] The Polkadot SDK and other core technology components are being developed by Parity Technologies. The project raised over $144.3 million in its Initial coin offering in October 2017. [3]

In 2017, Gavin Wood, Ashley Tyson, and Peter Czaban established the Web3 Foundation, a non-profit organization based in Zug, Switzerland [4] , to promote and provide funding for blockchain-based decentralized web technologies. [5] The Polkadot SDK and other core technology components are being developed by Parity Technologies, a blockchain infrastructure company founded in 2015 by Gavin Wood and Jutta Steiner. [6]

In October 2017, Polkadot raised over $144.3 million in its initial coin offering (ICO). [7] Shortly after the ICO, a vulnerability in the multi-signature wallets developed by Parity Technologies led to the freezing of approximately $150 million worth of Ethereum, including a significant portion of the funds raised. [8] Over 500 wallets were impacted, including Polkadot’s wallet, which held a significant portion of the $144.3 million raised during its ICO. [9] In 2019, Polkadot raised an additional $43 million through a private token sale. [10]

Network Launch and Parachains (2020-2021)

In May 2020, Polkadot launched its mainnet under a proof-of-authority consensus model, managed by the Web3 Foundation during its early phase. [11] By June 2020, the network transitioned to a Nominated Proof-of-Stake (NPoS) consensus mechanism, allowing token holders to nominate validators to secure the network and process transactions. [12]

In December 2021, Polkadot introduced parachain functionality, allowing multiple blockchains to run simultaneously and connect to the network's Relay Chain. [13]

Concepts

Polkadot relays. Several Polkadot relays.png
Polkadot relays.

Multi-chain ecosystem

Polkadot is founded on the premise that there will be a multitude of blockchains in the future. It provides an open-source software development kit called Polkadot SDK that can be used by development teams to build their own blockchains. These blockchains can function independently, known as "solochains," or integrate into the Polkadot network as "parachains," thereby benefiting from shared security and cross-chain communication capabilities. [14]

Sovereignty, shared security and interoperability

Polkadot offers three properties to parachains: sovereignty, shared security and interoperability.

Cross-Consensus Message Passing (XCMP)

XCMP is Polkadot's protocol for facilitating communication between parachains. It enables the transfer of arbitrary data across chains, supporting a wide range of applications, including token transfers, smart contract interactions, and more complex cross-chain operations. XCMP operates by allowing parachains to send messages to each other through the Relay Chain. [17]

Governance

Polkadot implements an on-chain governance system, allowing stakeholders to influence the network's development and decision-making processes. Over time, its governance model has transitioned from Governance V1 to OpenGov, to address concerns of decentralization and community involvement. [18] Polkadot Council members and Relay Chain Validators are selected via Phragmen election method. [19]

Technical details

Proof of stake

The network uses a nominated proof-of-stake consensus algorithm. [20] The protocol used, Blind Assignment for Blockchain Extension (BABE), is derived from Ouroboros. [21] Validators are responsible for block production and validation, while nominators support validators by staking DOT tokens on their behalf. [22]

See also

Related Research Articles

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References

  1. ↑ Vigna, Paul (March 3, 2022). "How Bitcoin and a Crypto Exchange Became Part of Ukraine's War Effort". Wall Street Journal.
  2. 1 2 "About Polkadot, a platform for Web3". PolkadotAbout. October 17, 2017.
  3. ↑ Butcher, Mike (October 17, 2017). "Polkadot passes the $140M mark for its fund-raise to link private and public blockchains". Techcrunch.
  4. ↑ "Web3 Foundation Entity Details". Zefix. Retrieved January 8, 2025.
  5. ↑ Butcher, Mike (October 17, 2017). "Polkadot passes the $140M mark for its fund-raise to link private and public blockchains". TechCrunch. Retrieved January 8, 2025.
  6. ↑ "The future of Blockchain infrastructure, with Gavin Wood and Jutta Steiner at Disrupt Berlin". TechCrunch. July 21, 2015. Retrieved January 8, 2025.
  7. ↑ Butcher, Mike (October 17, 2017). "Polkadot passes the $140M mark for its fund-raise to link private and public blockchains". TechCrunch. Retrieved January 8, 2025.
  8. ↑ "Code bug freezes $150m of Ethereum crypto-cash". BBC News. November 8, 2017. Retrieved January 8, 2025.
  9. ↑ "Code bug freezes $150m of Ethereum crypto-cash". BBC News. November 8, 2017. Retrieved January 8, 2025.
  10. ↑ Butcher, Mike (October 17, 2017). "Polkadot passes the $140M mark for its fund-raise to link private and public blockchains". TechCrunch. Retrieved January 8, 2025.
  11. ↑ "Ethereum Blockchain Killer Goes By Unassuming Name of Polkadot". Bloomberg. October 17, 2020. Retrieved January 8, 2025.
  12. ↑ "After Musk Bitcoin U-turn, which coins are more climate friendly?". Al Jazeera. May 13, 2021. Retrieved January 8, 2025.
  13. ↑ "Polkadot's Parachain Slot Auctions Raise Over $200 Million via Crowdloans". Nasdaq. June 27, 2021. Retrieved January 8, 2025.
  14. ↑ Ezzat, Shahinaz Kamal; Saleh, Yasmine N. M.; Abdel-Hamid, Ayman A. (2022). "Blockchain Oracles: State-of-the-Art and Research Directions". IEEE Access. 10: 67551–67572. Bibcode:2022IEEEA..1067551E. doi:10.1109/ACCESS.2022.3184726.
  15. 1 2 van Haaren-van Duijn, Birgitte; Bonnin Roca, Jaime; Romme, A. Georges L.; Weggeman, Mathieu (September 2023). "The Seven Capital Sins in the Governance of Blockchain Ecosystems" (PDF). IEEE Engineering Management Review. 51 (3): 13–17. doi:10.1109/EMR.2023.3280130.
  16. ↑ "Understanding XCM on Polkadot and How It Enables Cross-Chain Use Cases". Moonbeam. Retrieved 2024-09-11.
  17. 1 2 Morháč, Dušan; Valaštín, Viktor; Košťál, Kristián; Kotuliak, Ivan (2023). "ParaSpell XCM SDK: A New Protocol for Interoperability in Polkadot Paraverse". 2023 Fifth International Conference on Blockchain Computing and Applications (BCCA). pp. 569–576. doi:10.1109/BCCA58897.2023.10338906. ISBN   979-8-3503-3923-9.
  18. ↑ Kiayias, Aggelos; Lazos, Philip (2022). "SoK: Blockchain Governance". Proceedings of the 4th ACM Conference on Advances in Financial Technologies. pp. 61–73. doi:10.1145/3558535.3559794. ISBN   978-1-4503-9861-9.
  19. ↑ Brill, Markus; Freeman, Rupert; Janson, Svante; Lackner, Martin (January 2024). "Phragmén's voting methods and justified representation". Mathematical Programming. 203 (1–2): 47–76. doi:10.1007/s10107-023-01926-8. PMC   10858002 . PMID   38344413.
  20. ↑ Piven, Ben (13 May 2021). "After Musk Bitcoin U-turn, which coins are more climate friendly?". www.aljazeera.com. Retrieved 5 July 2021.
  21. ↑ "BABE | Research at Web3 Foundation". research.web3.foundation. Retrieved 2024-09-10.
  22. ↑ Cevallos, Alfonso; Stewart, Alistair (2021). "A verifiably secure and proportional committee election rule". Proceedings of the 3rd ACM Conference on Advances in Financial Technologies. pp. 29–42. arXiv: 2004.12990 . doi:10.1145/3479722.3480988. ISBN   978-1-4503-9082-8.
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