What type of currency is DOT (Does DOT have potential)?

08/10/2023 16:16 • NFT Newsflash • 71 views

What type of currency is DOT? DOT is a synonym for a blockchain protocol with the code name dot. Unlike Bitcoin and Ethereum, DOT is not transferred or paid through any intermediaries. On the Bitcoin network, there are no intermediaries that can access the transaction records on the chain. Instead, users need to store their cryptocurrency in a wallet and send a small amount of DOT to it (usually on Ethereum).

When a node wants to withdraw funds, they must transfer a large amount of value, in the millions of dollars, from their own wallet. (Bitcoin.com)

Does DOT have potential?

Editor’s note: This article is from the FHBT18 community (ID: FHBT18), written by Peipei, and authorized for reprint by Odaily Star News.

Hello, I’m Peipei. The coin DOT was launched in late last year, but recently there has been no news about it. Yesterday, some media reported that it has been “pumping” since January this year. However, many friends are not sure if this is a bull market, so they haven’t paid much attention to it.

In my personal opinion, DOT is similar to a few topics we discussed before:

First of all, it is a forked project, a branch of the Polkadot network called PolkaWorld. The native token of this blockchain, DOT, is a digital currency of the same type as Polkadot, officially issued by PolkaWorld. Its total supply is 1 billion, with 80% belonging to the foundation and 10% used for future ecological development. The remaining 20% will be allocated to the development team as an incentive plan, that is, rewards will be obtained through staking. To participate in the Polkadot network, you can use DOT as payment. DOT itself is also a smart contract platform with a wide range of use cases. Users can publish various applications, such as transfers and transactions, on it.

For many investors, they may consider this as a small token investment category, which may not necessarily be profitable for them. However, there might be some pressure if they want to buy it. Therefore, it is recommended not to pay too much attention to price fluctuations. Secondly, this token is currently in its early stages. Although it has not been fully issued yet, according to defipulse data, as of September 2020, more than 2 billion DOTs have already been burned. So, how are these DOTs? I think this token indeed has potential.

First of all, from the graph, we can see that there are still over 500 million DOTs in circulation, which means there are only about 400 million US dollars. Based on the current price, DOT is only about 1.5 times. Looking further ahead, there might be room for growth. Of course, it is worth noting whether this incremental capital will enter the circulation field, as the market size is estimated to be small, with only two or three institutions entering. The second point is that the recent largest exchanges, Bitmex and Kraken, have announced support for DOT. In addition, according to bitMEX, the exchange is testing a new version of its wallet product called Gnosis Safe.

Lastly, it is worth noting the issue of “hackers” mentioned in the recent news. “Attackers” refer to those who exploit vulnerabilities on Ethereum to steal users’ encrypted assets and carry out targeted redemption. “Hackers” transfer all the ETH in their accounts to their own wallets, and the purpose of doing so is to ensure that users can access their private keys to protect the security of their assets. “Hackers” (also known as coin thieves) are a cryptographic encryption technique.

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What type of currency is DOT (Does DOT have potential)?

Does DOT have potential?

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