DOT could get a 290% raise in the long run - Sofi12z
█ Fundamental Analysis
Polkadot (DOT) is an innovative blockchain project that aims to create a secure interconnection infrastructure between different blockchains, while providing scalability possibilities and new functionalities to them.
One of the recently created cryptocurrency projects that has captured the most attention from around the world is Polkadot (DOT). The reason? This new blockchain technology plan seeks to dethrone Ethereum with a much more scalable and efficient network. At the same time, it offers the possibility of interconnecting various blockchains and becoming an unparalleled cross-chain development hub.
Undoubtedly, this makes Polkadot a plan with a fairly high goal and that leaves us with the following question: Will it succeed? Well, in this article you will have the opportunity to learn everything about this plan and answer these and other questions about this spectacular plan for yourself.
Polkadot, origin of this plan
The principles of this plan lead us to meet one of the main figures in the entire crypto world, Gavin Wood. Wood is a well-known blockchain technology creator who was part of the Ethereum development team. By the way, Wood held the position of prime inventor of Ethereum, being in the same rank as Vitalik Buterin. A situation that denotes his understanding and his work in this plan. It is thanks to Wood's work that Ethereum has the powerful Solidity programming language, which was developed by his person. However, on January 11, 2016, Wood made the decision that it was time to leave and start his own plan, abandoning the Ethereum plan.
At that time, Wood's initiative was to initiate a blockchain plan capable of overcoming the weaknesses of Ethereum. In particular, its scalability and enable novel cross-chain handling constructs. Thus, by June 2016, Wood had already started working on this new plan, and in October 2016, he presented the first version of the Polkadot whitepaper to the world. With this, this interesting plan began, in which the inventor Marek Kotewicz was also participating.
From that moment on, the development of Polkadot would start its way, until gathering a larger proportion of attention on it. Something that, by the way, can be seen precisely today. And it is that, Polkadot belongs to the blockchain projects with the greatest increase throughout 2020 and the beginning of 2021.
Initial financing of the plan
Gavin Wood began this plan initially with financial support from his organization Parity and the Web3 Foundation, which he also helped create. Although Parity and the Web3 Foundation are benchmarks within the entire Ethereum world, their collaboration in financing Polkadot is essential.
However, the resources of the two organizations were limited as they were focused on Ethereum. This led to the execution of an Initial Coin Offering ( ICO ) that was made from October 15 to 27, 2017. The triumph of the ICO has been extraordinary, being able to raise 143 million dollars for the development of this plan. .
However, shortly after, this triumph would be put in serious danger. A hack would see Parity lose well over $90 million on the Ethereum network. With his income severely diminished, the work route was reconsidered and Gavin Wood left it clear that Polkadot's work would continue. This is because there was enough money for the plan to be successful and the conditions of the ICO will be respected.
Additionally, Parity and the Web3 Foundation sought a way to request support to make a hard fork that would allow them to recover the rest of the ETH blocked by the hack. The size received harsh criticism and the society opposed the execution of an action such as the one granted after the hack of The DAO in 2016. This was because they feared that this case would lead to a completely new incision in society. Outcome? Funds are still locked in the well-known Parity Bug, and there seems to be no way to get money out of that site.
Polkadot, an extremely different blockchain network initiative
Now, Polkadot began its path in the mind of Gavin Wood as a network capable of giving the same abilities as Ethereum, simultaneously overcoming its weaknesses, and offering a sequence of unique properties. In order to do this, Polkadot devised from its foundations an entirely new set of technology and agreement protocols intended for this purpose.
In the first instance, Polkadot was created with the performance of heterogeneous networks in mind, which could be interconnected. Thus, Polkadot could consummate with 2 well-defined functionalities:
As a chain of data transmission and processing. A feature that enables it to receive information from other chains, process that information, and send it back to the chain it came from. This first choice enables Polkadot to become a scalability layer for any other blockchain that requires it.
Free performance building your own strings. That is, produce chains with their own abilities, such as the compatibility situation to carry out smart contracts or tokens. This enables the native management of decentralized applications (DApps) and tokens on the network that have the possibility of taking full advantage of the potential of the network.
The initiative with all of the above is that Polkadot manages to become a scalability choice for networks such as Ethereum or other cryptocurrencies. In addition, it could also serve to interconnect various ecosystems in various blockchains, all on the same network. This last case, exemplifying; can be seen with the DeFi plan, Equilibrium making life on EOS.
Relay Chain and Parachains, the separation of Polkadot chains
Additionally, this handling enables Polkadot to provide better stability, scalability through sharding and parallel execution on the network, which increases its overall performance. At this point, it is essential to highlight the application of sharding in Polkadot . Recall that this computing technique divides the parent chain and the network into some sub-chains and sub-networks attached to it. Thus, each subchain has its own blockchain history, nodes, and all the elementary infrastructure for its management.
In Polkadot in other words just what happens. The subchains in Polkadot are called parachain, which can be seen as a sidechain or secondary chain, where a blockchain instance of its own is made. In other words, a parachain has its own blockchain or history, which supports its own reality of tokens, smart contracts, and nodes. In this way, this parachain has its own capacity and computing power to meet its needs.
The Relay Chain, however, is Polkadot's parent chain, and it exists under the alliance of the history of each of the parachains running in parallel on the Polkadot network. This organization makes it possible for Polkadot to carry out smart contracts in parallel, and additionally, it enables greater scalability than recent blockchains.
Additionally, this segmented functionality also enables the life of the Bridges or Bridges, with which the parachains have the possibility of opening communication with other blockchains (such as Ethereum, EOS or Bitcoin) and serve as a link with them. As the parachains have the possibility of communicating with each other, this also makes it possible for various Bridges pointing to other chains to communicate, serving as cross-chain channels to carry out operations between them. In short, with Polkadot and its Bridges, it is possible to interconnect Bitcoin and Ethereum (or other blockchains) very quickly, with enormously reduced prices, without ever abandoning stability.
Smart contracts and tokens in Polkadot
Polkadot does not natively support smart contracts. This rules out building tokens or DApps natively on the network. However, Polkadot parachains are extensible and modular, having the function of being able to generate abstraction layers that allow the execution of these smart contracts. When executed in a parachain, their effect is reduced in terms of resource consumption, to said parachain, leaving the rest of the system working in a common way. This prevents, for example, that a high number of transactions in a parachain, reduce the performance of the rest of the system.
Another great virtue of this system is that its handling, design, programming and deployment is much simpler. That has made Polkadot a much more secure network. Additionally, smart contract-capable parachains have the ability to activate high-speed alternative protocols that allow the execution of those smart contracts with minimal effect on the overall Polkadot ecosystem.
An example case for this class of functions is EdgeWare, which has an expansion layer for Polkadot that enables their execution, including compatibility with Ethereum smart contracts and its EVM. Additionally, there is also Ink, a development designed to build smart contracts that exploit the abilities of Substrate, an important section of Polkadot, and that uses the secure programming language, Rust.
Another highly relevant plan in this regard is Moonbeam, which enables a Polkadot parachain with these abilities, which implements a solution that is fully compatible with the Ethereum EVM, and with the Web3 RPC API, giving each of the elementary instruments to users. programmers to harness the potential of Ethereum smart contracts over Polkadot.
Obviously, these are not the only resolutions for smart contracts in Polkadot parachains, however they are a clear example of the probability of carrying out this technology easily and much more on the network.
Network organization in Polkadot
Now to be able to do this kind of management, Polkadot has made a whole new network organization in which 4 resources stand out. These resources are:
Validators
The Polkadot network, like any blockchain network, has a set of validator nodes whose job is to review, validate and inform the network about the information contained in each block that belongs to the blockchain. These blocks come from the nominators, who are delegated to generate the candidate block that will be examined and validated by the validators.
Given the value of a validator, and the way Polkadot works, this stance requires powerful hardware, high bandwidth, a dedicated connection solely to its work on the network, and additionally, Polkadot validators have to block DOT tokens in order to qualify as network validators.
However, he recalls that Polkadot is a network with performance segmented in sharding and with parallelism capacity, which raises the demands of computing power and connection.
Nominators
Nominators, on the other hand, are a particular type of node whose job it is to produce a secure kinship between validators and the entire network performance process. The role of the nominators is simple: take the transactions from the network, group them and do the process of generating the necessary metadata so that the validators can verify it and include it in the history of the Polkadot blockchain.
Undoubtedly, this functionality is very similar to Proof of Work (PoW) system miners or Proof of Stake (PoS) validator nodes, and its functionality is practically the same in this regard.
Additionally, nominators issue to validators the composition of a block to be examined by validators, who will have the final say in issuing it and make it part of Polkadot's history.
Classifiers
This class of nodes help validators to keep a complete history of the parachain (subchain of Polkadot ) to which they were pointed. Its job is to preserve elemental information at all times to generate new blocks in the parachain, which will ultimately culminate in the entire history of Polkadot. In classic situations, it will collect and execute transactions to generate a block and provide it, along with a Zero Proof of Understanding (ZKP), to one or more currently triggering validators who are suggesting a block on the parachain.
Fishermen
Given Polkadot's handling of sharding, where there are different substrings that are part of a more complete history, an infrastructure designed to prevent malicious actors from cheating has been created. That composition is maintained by the fishermen or fisherman. These nodes have the ability to search for duplicate transactions or illegal operations in the network, to avoid them, in exchange for a reward.
The performance of these 4 parts is what enables the orchestration of the process of generation, verification, validation and issuance of blocks in Polkadot and its parachains. In addition, it is noteworthy that the communication between all these resources (between the subchains and the main chain) is completely asynchronous and parallel, guaranteeing a high speed of communication within the system.
Network consensus
The resources that are part of the Polkadot network work in unison thanks to the Polkadot agreement protocol known as NPoS or Nominated Proof of Stake. This agreement protocol is intended as a slight alteration of the well-known Proof of Stake (PoS) protocol.
In NPoS, validators have to provide the infrastructure and maintenance of the network. They are the cause of the production of new blocks, the validation of the parachain blocks, guaranteeing the objective and ultimately the stability of the network. They have to be responsive at all times and make a secure and reliable infrastructure.
In addition, validators require tokens to support them, which incentivizes them to comply with the rules, because otherwise some of those tokens could be removed (a criterion called “cutoff”). For their services, validators are paid in rewards called in the native token of the underlying network. In order for validators to be able to do their services for the network, they have to be in the active group. The active pool validators take turns raising, validating, and adding new blocks.
For their part, nominators are token holders who contribute to the stability of the network by financially supporting (also known as “nominating”) up to 16 validators of their choice with their tokens (also known as “staking”). Nominators share part of the rewards earned by validators in the active pool they nominated. It is essential to consider that nominators also remain subject to cuts in the event of misconduct by one of their nominated validators.
How does it work?
NPoS can be equated with a choice and was inspired by Phragmen's sequential procedure. This procedure was introduced at the end of the 19th century to optimize the voting of a group of a defined number of individuals from a larger pool of candidates. In this way, the purpose of NPoS is to ensure decentralization and fair representation through justified proportional representation. And next to it, provide high stability through greater support.
Proportional Justified Representation ensures that slots are allocated to validators in proportion to their nominations. Therefore, the more nominations and, ultimately, the larger the proportion of tokens endorsing a validator, the greater the chance that the validator will be chosen for the active pool. The validators are finally chosen from each. This means that the pool of active validators changes every Era.
When validators are elected to the active pool based on their nominations, the aid grants a share of the nominated collaboration whereby each validator in the active pool has about the same proportion of collaboration supporting it. This increases the overall stability of the network by raising the stakes by supporting the "weakest links" of the validator pool, ultimately making it more resistant to attack.
Distribution of rewards in NPoS
In NPoS, all validators in the active pool receive the same proportion of rewards. From these rewards, the validator commission is inferred. The remaining rewards are distributed among the nominators in proportion to their collaboration. At this point, the system works identically to Proof of Stake (PoS).
DOT token, the economic heart of Polkadot
To retain control of the entire Polkadot network, this plan has developed a DOT name token. The purpose of this token is multiple. In the first instance, it serves for the decentralized governance of the protocol. For that, the DOT token enables the validators a voting power with which they have the possibility to participate in the elections and evolution of the plan.
Additionally, the DOT token serves to bind and incentivize validators to act honestly on the network. This by having a financial interest in the veracity of the verification process. Even Polkadot parachains or subchains have the possibility of being created, joined or destroyed due to DOT tokens. Something that undoubtedly gives great flexibility and maintainability to the network.
█ Technical Analysis:
Polkadot is a good project, but it is quite new, although it has good development and a strong community, in addition to being solid in terms of liquidity, it could attract our attention to invest in it in the long term.
The volatility in the asset is currently at a 2021 low, so it is safer to trade now than in previous years. This serves to take long-term positions with greater security.
Basic Information.
Rank: 14
Market cap: 938M
Price in BTC: 0.000386
Available supply: 987,579,314.96
Maximum supply: 1,103,303,471
Volume (USD): 636,260M / 961,497M
Relative volume: 0.66 ×
Volatility: 7.41%
Range: $14.765857 – $15.566612
Supports:
5D: This gets its value from 14.5 to 15.83 USDT which would be the strongest support today and with higher volume.
1W: Located at the value of 11.9 USDT which would be the zone with the greatest demand, but currently there are no orders with great relevance in this value, in case the 5D support is broken, this zone would probably be the last zone in which the price could enter a cumulative zone.
3D: This is in the range of 15.83 to 18.12.
Resistors:
3D: From 18.89 to 19.56 USDT being a testing resistance.
1W/5D(R): 23.21 to 23.85 USDT being the resistance in which a strong impulse should be made in order to climb and obtain liquidity to seek new long-term objectives.
Terms:
T1, T2 = Target 1, Target 2
Zone1, Zone2 = These are zones in which the price can have an impulse.
Conclusions
The volatility is at a minimum and long-term purchases are beginning to be found in the asset, in general I would look to buy in the range of the 3D support in the best case, make DCA until the weekly support in which I doubt that the price will obtain values inferior looking long-term to obtain 200% in the asset in a pessimistic way.
All the indicators come to indicate oversold, but I prefer to use technical analysis concepts combined with fundamentals for my spot, giving volume information higher priority than moving averages or oscillators.
If you liked the analysis, leave your like and leave any questions in the comments, I will answer as soon as I can.
Polkadot (DOT) is an innovative blockchain project that aims to create a secure interconnection infrastructure between different blockchains, while providing scalability possibilities and new functionalities to them.
One of the recently created cryptocurrency projects that has captured the most attention from around the world is Polkadot (DOT). The reason? This new blockchain technology plan seeks to dethrone Ethereum with a much more scalable and efficient network. At the same time, it offers the possibility of interconnecting various blockchains and becoming an unparalleled cross-chain development hub.
Undoubtedly, this makes Polkadot a plan with a fairly high goal and that leaves us with the following question: Will it succeed? Well, in this article you will have the opportunity to learn everything about this plan and answer these and other questions about this spectacular plan for yourself.
Polkadot, origin of this plan
The principles of this plan lead us to meet one of the main figures in the entire crypto world, Gavin Wood. Wood is a well-known blockchain technology creator who was part of the Ethereum development team. By the way, Wood held the position of prime inventor of Ethereum, being in the same rank as Vitalik Buterin. A situation that denotes his understanding and his work in this plan. It is thanks to Wood's work that Ethereum has the powerful Solidity programming language, which was developed by his person. However, on January 11, 2016, Wood made the decision that it was time to leave and start his own plan, abandoning the Ethereum plan.
At that time, Wood's initiative was to initiate a blockchain plan capable of overcoming the weaknesses of Ethereum. In particular, its scalability and enable novel cross-chain handling constructs. Thus, by June 2016, Wood had already started working on this new plan, and in October 2016, he presented the first version of the Polkadot whitepaper to the world. With this, this interesting plan began, in which the inventor Marek Kotewicz was also participating.
From that moment on, the development of Polkadot would start its way, until gathering a larger proportion of attention on it. Something that, by the way, can be seen precisely today. And it is that, Polkadot belongs to the blockchain projects with the greatest increase throughout 2020 and the beginning of 2021.
Initial financing of the plan
Gavin Wood began this plan initially with financial support from his organization Parity and the Web3 Foundation, which he also helped create. Although Parity and the Web3 Foundation are benchmarks within the entire Ethereum world, their collaboration in financing Polkadot is essential.
However, the resources of the two organizations were limited as they were focused on Ethereum. This led to the execution of an Initial Coin Offering ( ICO ) that was made from October 15 to 27, 2017. The triumph of the ICO has been extraordinary, being able to raise 143 million dollars for the development of this plan. .
However, shortly after, this triumph would be put in serious danger. A hack would see Parity lose well over $90 million on the Ethereum network. With his income severely diminished, the work route was reconsidered and Gavin Wood left it clear that Polkadot's work would continue. This is because there was enough money for the plan to be successful and the conditions of the ICO will be respected.
Additionally, Parity and the Web3 Foundation sought a way to request support to make a hard fork that would allow them to recover the rest of the ETH blocked by the hack. The size received harsh criticism and the society opposed the execution of an action such as the one granted after the hack of The DAO in 2016. This was because they feared that this case would lead to a completely new incision in society. Outcome? Funds are still locked in the well-known Parity Bug, and there seems to be no way to get money out of that site.
Polkadot, an extremely different blockchain network initiative
Now, Polkadot began its path in the mind of Gavin Wood as a network capable of giving the same abilities as Ethereum, simultaneously overcoming its weaknesses, and offering a sequence of unique properties. In order to do this, Polkadot devised from its foundations an entirely new set of technology and agreement protocols intended for this purpose.
In the first instance, Polkadot was created with the performance of heterogeneous networks in mind, which could be interconnected. Thus, Polkadot could consummate with 2 well-defined functionalities:
As a chain of data transmission and processing. A feature that enables it to receive information from other chains, process that information, and send it back to the chain it came from. This first choice enables Polkadot to become a scalability layer for any other blockchain that requires it.
Free performance building your own strings. That is, produce chains with their own abilities, such as the compatibility situation to carry out smart contracts or tokens. This enables the native management of decentralized applications (DApps) and tokens on the network that have the possibility of taking full advantage of the potential of the network.
The initiative with all of the above is that Polkadot manages to become a scalability choice for networks such as Ethereum or other cryptocurrencies. In addition, it could also serve to interconnect various ecosystems in various blockchains, all on the same network. This last case, exemplifying; can be seen with the DeFi plan, Equilibrium making life on EOS.
Relay Chain and Parachains, the separation of Polkadot chains
Additionally, this handling enables Polkadot to provide better stability, scalability through sharding and parallel execution on the network, which increases its overall performance. At this point, it is essential to highlight the application of sharding in Polkadot . Recall that this computing technique divides the parent chain and the network into some sub-chains and sub-networks attached to it. Thus, each subchain has its own blockchain history, nodes, and all the elementary infrastructure for its management.
In Polkadot in other words just what happens. The subchains in Polkadot are called parachain, which can be seen as a sidechain or secondary chain, where a blockchain instance of its own is made. In other words, a parachain has its own blockchain or history, which supports its own reality of tokens, smart contracts, and nodes. In this way, this parachain has its own capacity and computing power to meet its needs.
The Relay Chain, however, is Polkadot's parent chain, and it exists under the alliance of the history of each of the parachains running in parallel on the Polkadot network. This organization makes it possible for Polkadot to carry out smart contracts in parallel, and additionally, it enables greater scalability than recent blockchains.
Additionally, this segmented functionality also enables the life of the Bridges or Bridges, with which the parachains have the possibility of opening communication with other blockchains (such as Ethereum, EOS or Bitcoin) and serve as a link with them. As the parachains have the possibility of communicating with each other, this also makes it possible for various Bridges pointing to other chains to communicate, serving as cross-chain channels to carry out operations between them. In short, with Polkadot and its Bridges, it is possible to interconnect Bitcoin and Ethereum (or other blockchains) very quickly, with enormously reduced prices, without ever abandoning stability.
Smart contracts and tokens in Polkadot
Polkadot does not natively support smart contracts. This rules out building tokens or DApps natively on the network. However, Polkadot parachains are extensible and modular, having the function of being able to generate abstraction layers that allow the execution of these smart contracts. When executed in a parachain, their effect is reduced in terms of resource consumption, to said parachain, leaving the rest of the system working in a common way. This prevents, for example, that a high number of transactions in a parachain, reduce the performance of the rest of the system.
Another great virtue of this system is that its handling, design, programming and deployment is much simpler. That has made Polkadot a much more secure network. Additionally, smart contract-capable parachains have the ability to activate high-speed alternative protocols that allow the execution of those smart contracts with minimal effect on the overall Polkadot ecosystem.
An example case for this class of functions is EdgeWare, which has an expansion layer for Polkadot that enables their execution, including compatibility with Ethereum smart contracts and its EVM. Additionally, there is also Ink, a development designed to build smart contracts that exploit the abilities of Substrate, an important section of Polkadot, and that uses the secure programming language, Rust.
Another highly relevant plan in this regard is Moonbeam, which enables a Polkadot parachain with these abilities, which implements a solution that is fully compatible with the Ethereum EVM, and with the Web3 RPC API, giving each of the elementary instruments to users. programmers to harness the potential of Ethereum smart contracts over Polkadot.
Obviously, these are not the only resolutions for smart contracts in Polkadot parachains, however they are a clear example of the probability of carrying out this technology easily and much more on the network.
Network organization in Polkadot
Now to be able to do this kind of management, Polkadot has made a whole new network organization in which 4 resources stand out. These resources are:
Validators
The Polkadot network, like any blockchain network, has a set of validator nodes whose job is to review, validate and inform the network about the information contained in each block that belongs to the blockchain. These blocks come from the nominators, who are delegated to generate the candidate block that will be examined and validated by the validators.
Given the value of a validator, and the way Polkadot works, this stance requires powerful hardware, high bandwidth, a dedicated connection solely to its work on the network, and additionally, Polkadot validators have to block DOT tokens in order to qualify as network validators.
However, he recalls that Polkadot is a network with performance segmented in sharding and with parallelism capacity, which raises the demands of computing power and connection.
Nominators
Nominators, on the other hand, are a particular type of node whose job it is to produce a secure kinship between validators and the entire network performance process. The role of the nominators is simple: take the transactions from the network, group them and do the process of generating the necessary metadata so that the validators can verify it and include it in the history of the Polkadot blockchain.
Undoubtedly, this functionality is very similar to Proof of Work (PoW) system miners or Proof of Stake (PoS) validator nodes, and its functionality is practically the same in this regard.
Additionally, nominators issue to validators the composition of a block to be examined by validators, who will have the final say in issuing it and make it part of Polkadot's history.
Classifiers
This class of nodes help validators to keep a complete history of the parachain (subchain of Polkadot ) to which they were pointed. Its job is to preserve elemental information at all times to generate new blocks in the parachain, which will ultimately culminate in the entire history of Polkadot. In classic situations, it will collect and execute transactions to generate a block and provide it, along with a Zero Proof of Understanding (ZKP), to one or more currently triggering validators who are suggesting a block on the parachain.
Fishermen
Given Polkadot's handling of sharding, where there are different substrings that are part of a more complete history, an infrastructure designed to prevent malicious actors from cheating has been created. That composition is maintained by the fishermen or fisherman. These nodes have the ability to search for duplicate transactions or illegal operations in the network, to avoid them, in exchange for a reward.
The performance of these 4 parts is what enables the orchestration of the process of generation, verification, validation and issuance of blocks in Polkadot and its parachains. In addition, it is noteworthy that the communication between all these resources (between the subchains and the main chain) is completely asynchronous and parallel, guaranteeing a high speed of communication within the system.
Network consensus
The resources that are part of the Polkadot network work in unison thanks to the Polkadot agreement protocol known as NPoS or Nominated Proof of Stake. This agreement protocol is intended as a slight alteration of the well-known Proof of Stake (PoS) protocol.
In NPoS, validators have to provide the infrastructure and maintenance of the network. They are the cause of the production of new blocks, the validation of the parachain blocks, guaranteeing the objective and ultimately the stability of the network. They have to be responsive at all times and make a secure and reliable infrastructure.
In addition, validators require tokens to support them, which incentivizes them to comply with the rules, because otherwise some of those tokens could be removed (a criterion called “cutoff”). For their services, validators are paid in rewards called in the native token of the underlying network. In order for validators to be able to do their services for the network, they have to be in the active group. The active pool validators take turns raising, validating, and adding new blocks.
For their part, nominators are token holders who contribute to the stability of the network by financially supporting (also known as “nominating”) up to 16 validators of their choice with their tokens (also known as “staking”). Nominators share part of the rewards earned by validators in the active pool they nominated. It is essential to consider that nominators also remain subject to cuts in the event of misconduct by one of their nominated validators.
How does it work?
NPoS can be equated with a choice and was inspired by Phragmen's sequential procedure. This procedure was introduced at the end of the 19th century to optimize the voting of a group of a defined number of individuals from a larger pool of candidates. In this way, the purpose of NPoS is to ensure decentralization and fair representation through justified proportional representation. And next to it, provide high stability through greater support.
Proportional Justified Representation ensures that slots are allocated to validators in proportion to their nominations. Therefore, the more nominations and, ultimately, the larger the proportion of tokens endorsing a validator, the greater the chance that the validator will be chosen for the active pool. The validators are finally chosen from each. This means that the pool of active validators changes every Era.
When validators are elected to the active pool based on their nominations, the aid grants a share of the nominated collaboration whereby each validator in the active pool has about the same proportion of collaboration supporting it. This increases the overall stability of the network by raising the stakes by supporting the "weakest links" of the validator pool, ultimately making it more resistant to attack.
Distribution of rewards in NPoS
In NPoS, all validators in the active pool receive the same proportion of rewards. From these rewards, the validator commission is inferred. The remaining rewards are distributed among the nominators in proportion to their collaboration. At this point, the system works identically to Proof of Stake (PoS).
DOT token, the economic heart of Polkadot
To retain control of the entire Polkadot network, this plan has developed a DOT name token. The purpose of this token is multiple. In the first instance, it serves for the decentralized governance of the protocol. For that, the DOT token enables the validators a voting power with which they have the possibility to participate in the elections and evolution of the plan.
Additionally, the DOT token serves to bind and incentivize validators to act honestly on the network. This by having a financial interest in the veracity of the verification process. Even Polkadot parachains or subchains have the possibility of being created, joined or destroyed due to DOT tokens. Something that undoubtedly gives great flexibility and maintainability to the network.
█ Technical Analysis:
Polkadot is a good project, but it is quite new, although it has good development and a strong community, in addition to being solid in terms of liquidity, it could attract our attention to invest in it in the long term.
The volatility in the asset is currently at a 2021 low, so it is safer to trade now than in previous years. This serves to take long-term positions with greater security.
Basic Information.
Rank: 14
Market cap: 938M
Price in BTC: 0.000386
Available supply: 987,579,314.96
Maximum supply: 1,103,303,471
Volume (USD): 636,260M / 961,497M
Relative volume: 0.66 ×
Volatility: 7.41%
Range: $14.765857 – $15.566612
Supports:
5D: This gets its value from 14.5 to 15.83 USDT which would be the strongest support today and with higher volume.
1W: Located at the value of 11.9 USDT which would be the zone with the greatest demand, but currently there are no orders with great relevance in this value, in case the 5D support is broken, this zone would probably be the last zone in which the price could enter a cumulative zone.
3D: This is in the range of 15.83 to 18.12.
Resistors:
3D: From 18.89 to 19.56 USDT being a testing resistance.
1W/5D(R): 23.21 to 23.85 USDT being the resistance in which a strong impulse should be made in order to climb and obtain liquidity to seek new long-term objectives.
Terms:
T1, T2 = Target 1, Target 2
Zone1, Zone2 = These are zones in which the price can have an impulse.
Conclusions
The volatility is at a minimum and long-term purchases are beginning to be found in the asset, in general I would look to buy in the range of the 3D support in the best case, make DCA until the weekly support in which I doubt that the price will obtain values inferior looking long-term to obtain 200% in the asset in a pessimistic way.
All the indicators come to indicate oversold, but I prefer to use technical analysis concepts combined with fundamentals for my spot, giving volume information higher priority than moving averages or oscillators.
If you liked the analysis, leave your like and leave any questions in the comments, I will answer as soon as I can.
免責聲明
這些資訊和出版物並不意味著也不構成TradingView提供或認可的金融、投資、交易或其他類型的意見或建議。請在使用條款閱讀更多資訊。