$DOT
native asset
Layer 0 Multichain Network Token ÔÇö $DOT
$DOT is the native token of Polkadot, a Layer 0 protocol that enables multiple blockchains (called parachains) to interoperate and share security. Polkadot is built using the Substrate framework and connects parachains through a central Relay Chain. $DOT is used for staking, bonding parachains, governance, and paying network fees across the ecosystem. Its architecture allows developers to launch custom blockchains optimized for specific use cases while benefiting from shared security and scalability.
Use Case: $DOT is used for securing the Polkadot network through staking, voting on governance proposals, and bonding new parachains through auction mechanisms.
Key Concepts:
- Layer 0 ÔÇö The foundational layer connecting multiple Layer 1 chains (parachains).
- Parachains ÔÇö Independent blockchains that plug into the shared Relay Chain.
- Relay Chain ÔÇö PolkadotÔÇÖs central chain responsible for consensus and shared security.
- Nominated Proof of Stake (NPoS) ÔÇö Validator selection model where nominators elect trusted node operators.
- Interoperability ÔÇö Cross-chain messaging and composability between sovereign chains.
Summary: $DOT powers the Polkadot ecosystem by enabling secure consensus, decentralized governance, and the onboarding of new parachains. As a Layer 0 asset, it supports the modular future of blockchain infrastructure, where specialized chains operate together in scalable, interconnected networks.
| Feature | Details |
|---|---|
| Launch Year | 2020 |
| Founder | Gavin Wood (Ethereum co-founder) |
| Governance Model | On-chain voting via DOT holders |
| Consensus Mechanism | Nominated Proof of Stake (NPoS) |
| Key Utility | Staking, governance, parachain bonding |