All About Polkadot (DOT)

Polkadot is a network that allows interoperability between blockchains that plug into the Polkadot relay chain.

The Polkadot ecosystem refers to the entire ecosystem of parachains that plug into a single base platform known as the Relay Chain. DOT is Polkadot’s native token that serves four functions: payment for fees, governance over the network, interoperability, and bonding.

  • Parachains are custom, project-specific blockchains that are integrated within the Polkadot (DOT) and Kusama (KSM) networks. These parachains exist as independent blockchains – with an entirely unique token, governance systems, and functionality. You can think of parachains as independent networks that are compatible with Polkadot and each other, allowing for seamless cross-chain interoperability.
  • Similar to staking, DOT token holders can act as nominators by “bonding” their tokens to a dedicated validator to help secure the network. Bonding tokens helps increase the network’s cost of attack and allows DOT holders to earn newly minted tokens as staking rewards.

Download the Binance.US app to trade on the go: iOS | Android

Follow us on social media to stay up to date with Binance.US news and announcements:






Legal disclaimer: This material has been prepared for general informational purposes only and should NOT be: (1) considered an individualized recommendation or advice; and (2) relied upon for any investment activities. All information is provided on an as-is basis and is subject to change without notice, we make no representation or warranty of any kind, express or implied, regarding the accuracy, validity, reliability, availability or completeness of any such information. Binance.US does NOT provide investment, legal, or tax advice in any manner or form. The ownership of any investment decision(s) exclusively vests with you after analyzing all possible risk factors and by exercising your own independent discretion. Binance.US shall not be liable for any consequences thereof.

Share this article: Link copied to clipboard!