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November 10, 2022

Crypto Academy

Introducing Polkadot: what is it and how can I buy it?

We’ve just launched our latest token available to buy & sell in the app - Polkadot (DOT). Learn all you need to know about DOT in this week’s article.

By Amy W

The weather sucks, and so do a lot of our financial situations at the moment. That being said - not all is bleak. We’ve been releasing new tokens in our app weekly for our users to securely leverage the growing world of crypto. This week’s drop is no other than the layer 1 protocol, Polkadot.

Here’s all you need to know about our newest token.

What is Polkadot? 💡

Polkadot is a blockchain technology that aims to connect and support other blockchains with its core network.

If you’ve been checking in with us on the other token drops, you’ll know what’s coming. If not, here’s our best attempt at making that description sound waaay more simple than, well, that description:

  1. Polkadot is a ‘blockchain technology’
    While our regular readers are likely having a bit of a groundhog day with this one - if you’re new here, this is pretty important to cover. Blockchain technology, in short, is much like a database formed by a sequence of entries rather than manual input from centralised individuals. Check out The Village Story for a really really brilliant breakdown of what this actually means.
  2. Polkadot ‘aims to connect and support other blockchains’
    The development of cryptocurrency was revolutionary in itself, but as the industry has grown, it has also faced a number of growing pains that many developers of newer blockchain technologies have set out to conquer. One of these fundamental & architectural flags most commonly known is the interconnectivity between different flagship blockchains. In a little more complexity, this is exactly what Polkadot sets out to improve.
  3. Polkadot does this ‘with its core network’
    With a goal to improve communication and adaptability across different blockchains, Polkadot built a foundation layer network operating at a deeper level than blockchains like Ethereum and Solana to become a network for other networks. It does this by enabling parachains (specialised, network-specific blockchains that work in parallel with the Polkadot network) to transfer almost any type of data between each other and building bridges that help those in the Polkadot network connect to external networks.

Side note: if these still have you scratching your head, don’t worry too much. We’re hedging our bets here, but assuming you don’t fully understand the database your dentist uses to process your appointments, would that affect your decision-making when it comes to getting dental work? Try think of the underlying tech behind the blockchain technology here a little like this.

Why does Polkadot exist? 🤨

Polkadot was the brainchild of Ethereum co-founder & ‘Web3’ coiner, Gavin Wood.

Launched in 2020, it was built as a ‘layer-0’ blockchain to build stronger foundations for other blockchains to successfully work together and improve the inhibited infrastructures they host due to pre-existing tech limitations (like compatibility with one another).

What can I do with DOT? 🤝

The native token of the Polkadot network is DOT.

DOT has two main functions across the Polkadot network: staking on the network to support transactions & security, and its use for product governance.

As with most tokens, DOT can also be bought & sold on crypto exchanges and held in crypto wallets by token enthusiasts. As a traded token, DOT has gained a fair amount of popularity since its initial coin offering (ICO) in August 2020, having often found itself among the top 10 cryptocurrencies for popularity by market cap over the two years, sitting alongside contenders like Ethereum, Solana, and Bitcoin.

Along with our other listed tokens, many choose to buy & hold DOT due to the value they believe it’s worth on the basis of things like growing popularity, longevity, and crypto’s growing economy. Much like our own everyday currency - the pound - DOT’s value is determined by people’s trust and faith in the token, and the supply-and-demand nature of currency ownership. While nobody can predict the future, as long as the network sees more growth, in theory the token's value should inherently increase.

Why should I buy DOT? 💰

Why should I buy doughnuts for my afternoon snack? Truth is - no one can answer that question other than me, and the same goes for crypto. We’re not financial advisors and we’ll never tell you what to buy or when to buy it, but we built a secure and trusted platform that enables you to buy DOT because we believe in its value and have confidence in the infrastructure behind the token.

As with all of the tokens on our app, we think it's important that people have safe access to acquire, accumulate, and store their DOT holdings.

How do I buy DOT in the UK? 🚀

As an FCA-registered and publicly-listed UK app, we’ve made it our mission to make Mode the safest way to buy crypto in the UK. Crypto has come a long way since the birth of Bitcoin, but its complexities are still pretty evident in a lot of products today. At our core, we work relentlessly to grow, shape, and mould Mode in a way that offers easy access into the space, without having to worry about hidden fees, higher risks, or difficult steps.

You can buy and sell DOT with as little as £20 in the Mode app today, and start watching your portfolio grow within seconds.

Down the road, we’ll be exploring adding features such as crypto rewards and crypto payments as part of our future roadmap. Stack more by shopping with 400+ top UK brands like Deliveroo, Foot Locker, and Trip.com.

Until next time,

Happy hodling!

Buy Polkadot (DOT) with

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T&C’s apply. Redemption and withdrawal limits apply. Digital Assets are not UK regulated. No FOS/FSCS on Cryptoasset-related services & products. Gains may attract Capital Gain Tax. Mode does not offer any financial or investment advice.

Fibermode Limited trading as Mode is a registered Cryptoasset firm with the UK Financial Conduct Authority, pursuant to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. Firm Reference Number: 928786.Greyfoxx Limited is an authorised and regulated firm with the UK Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money and payment instruments. Firm Reference Number: 901025. Mode Global Holdings PLC is a public limited company incorporated and registered under the laws of England and Wales with company number 12794676.

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