What is Polkadot (DOT)?

While the Web3 vision aims to provide a decentralized, user-oriented and interoperable structure for the internet, the ability to seamlessly integrate multiple blockchains stands out as one of the fundamental building blocks of this transformation. This is exactly where Polkadot comes into play. Polkadot, one of the projects that has been talked about since the early days of Web3, is a platform that aims to enable different blockchain networks to exist together under a single roof and to work together, and has a “multi-chain architecture” in this direction. In other words, Polkadot aims to become the “internet of blockchains” by bringing together disconnected and incompatible blockchains and enabling data and value transfer between them. For example, even between networks that cannot normally communicate, such as Bitcoin and Ethereum, information and asset transfer can be carried out over the Polkadot network without requiring an intermediary. Although Polkadot and its native token DOT have been on the market for a relatively long time, some investors have questions such as what is Polkadot and what is DOT coin. Let’s take a look at the answers to these questions and much more in this guide…

Definition and Origin of Polkadot

Polkadot's definition is shaped around the concepts of a heterogeneous multi-chain network and interoperability. For example, even between networks that normally cannot communicate, such as Bitcoin and Ethereum, information and assets can be transferred over the Polkadot network without requiring an intermediary. The Polkadot network consists of a central main chain called the Relay Chain and independent sub-chains connected to it. These sub-chains have been called parachains and have become one of the fundamental building blocks of the Polkadot ecosystem.

So, what exactly is a parachain? Each parachain works as its own private blockchain. In other words, these are "sovereign" blockchains with their own tokens, consensus rules, and governance mechanisms. Thanks to Polkadot's multi-chain architecture, these different chains are also connected to Polkadot's main Relay Chain, benefiting from common security. In addition, the chains can communicate seamlessly with each other. In other words, the Polkadot network maintains the independence of blockchains that serve different purposes, while securely connecting them all. Thus, according to some, Polkadot acts as a “higher-level protocol.” The protocol’s approach is to solve scalability and interoperability issues in the blockchain ecosystem.

The emergence of Polkadot dates back to 2016. In 2016, Dr. Gavin Wood, who is also a co-founder of Ethereum (ETH), came up with the idea of ​​creating a scalable, flexible, and “fragmentable” blockchain infrastructure based on his experiences on the Ethereum network. In line with this vision, Polkadot’s technical document, or whitepaper, was published in October 2026.

The whitepaper explained in detail the concept of a “heterogeneous multi-chain” that would allow independent blockchains to operate in a common security pool. This “heterogeneous multi-chain” means a multiple chain where different types of blockchains work together. When the team led by Gavin Wood started developing the Polkadot protocol, they pointed to the fact that blockchain networks were disconnected from each other and the need for them to come together as the main reason. At that time, every project in the cryptocurrency world was creating its own chain. However, communication between these chains was becoming almost impossible. Polkadot's aim was to solve exactly this problem. In other words, it was to create the structure of the new generation internet called web3 by connecting different blockchains into a single ecosystem. With this passion for web3, the project was brought to life with the support of the Web3 Foundation. Gavin Wood and his colleague at Parity Technologies, Peter Czaban, founded the Switzerland-based non-profit Web3 Foundation in 2017 and declared Polkadot as the foundation's first and most important project. The Web3 Foundation was established to finance Polkadot's research and development activities and to provide strategic support to the project. Polkadot developments were carried out by Parity Technologies, a company founded by Wood in 2015.

To briefly summarize the emergence and definition of Polkadot... In particular, the answer to the question of what is Polkadot blockchain? provides a very good definition. Polkadot was founded in 2016 by Dr. It is a blockchain platform designed under the leadership of Gavin Wood, took the first steps to raise the necessary funding in 2017 and emerged with the mission of unifying different blockchains. So, what is DOT token? Polkadot coin features helps the ecosystem via the token. Because it serves as the native cryptocurrency of the Polkadot blockchain. However, its launch extends to 2020.

Polkadot's History: Important Milestones

Polkadot, one of the leading projects in the Web3 field, is also considered old in the cryptocurrency field. Because it has a history of 9 years. Therefore, it is necessary to summarize the important milestones. Below, you can see the most notable developments in Polkadot's history in chronological order:

• 2017: Polkadot launched the DOT token with the first public token sale (ICO) held through the Web3 Foundation. Thus, funds were raised for the development of the project. Approximately $144 million worth of Ethereum (ETH) was raised during this ICO, which took place in October 2017. Then, Polkadot's native token DOT was offered to investors for the first time. At this point, it is useful to open a parenthesis: There was a technical problem in Parity wallets after the ICO. For this reason, some of the funds were locked. Nevertheless, the Polkadot team managed to complete the financing process with additional private sales in 2019.
• 2020: The Polkadot network officially launched its mainnet on May 26, 2020, after a long period of testing and development. Initially, the network was controlled by the Web3 Foundation with a gradual transition strategy. However, by June 2020, the Polkadot network switched to a fully decentralized verification model by switching to the “Nominated Proof of Staking (NPoS)” consensus mechanism. In the same year, in August 2020, the Polkadot network became fully active by affecting DOT token transfers.
• 2021: Parachain slot auctions, a key part of Polkadot’s scalability vision, were launched this year. The first parachain slot auction began on November 11, 2021, and the Acala project joined the Polkadot network as the first winning parachain. As of December 2021, the first parachains were added live to the Polkadot Relay Chain, and the network’s multi-chain architecture began to be used in practice. This development delivered an important stage in Polkadot's technical roadmap. Because now multiple blockchains can operate in parallel under Polkadot.

• 2023: The XCM protocol, designed to further improve inter-chain communication in the Polkadot ecosystem, received significant updates. XCM, or the Cross-Consensus Messaging protocol, is a communication format that allows for the standard transfer of all types of data and assets between different parachains. Although the Polkadot network released the first XCM version in May 2022, many new features such as bridging external networks, inter-chain locking, and NFT support were added with the XCM v3 update in 2023. In July of the same year, Polkadot announced that it had reached the "Polkadot 1.0" stage, announcing that all the basic features initially specified in the whitepaper had been completed. Thus, the multi-chain Web3 infrastructure that Polkadot targeted at launch has largely become a reality.

Why is Polkadot Valuable?

What does Polkadot do? Let’s take a closer look at why Polkadot is so valuable and what problems it solves in the crypto world. Polkadot is an innovative platform that allows blockchains to connect to each other. Until now, most blockchains could only operate within their own network, but Polkadot removes this limitation and allows different networks to interact with each other. This feature makes Polkadot one of the fundamental infrastructures of the Web3 world. So, what exactly makes the DOT coin and ecosystem valuable? Here are the key points…

Interoperability between chains

The most valuable aspect of Polkadot is that it allows different blockchains to communicate with each other. The network allows messaging and transactions between different blockchains, thus facilitating the transfer of data and assets between independent chains. Thanks to this interoperability, decentralized applications built on Polkadot can benefit from the features of multiple networks instead of being limited to a single blockchain. For example, a Polkadot parachain can instantly send or receive data to another parachain through the XCM protocol.

This XCM protocol is a standardized messaging structure that allows all parachains in the Polkadot ecosystem to speak a common language, and provides high-speed cross-chain interaction across the network. In short, Polkadot is trying to create a complete ecosystem where many different platforms work together. Thus, it eliminates the “piecemeal” structure of the blockchain world.

Scalability and customization with parachain structure

The Polkadot network consists of parallel “side chains” called parachains. Therefore, it is highly scalable. Each parachain can be designed to be specific to a specific application or use case. For example, one can be specialized for DeFi applications, another for digital identity. This allows for the highest level of customization and flexibility. In particular, it is critical for developers to use a modular development framework called Substrate in terms of customization. In this way, developers can create new blockchains that suit their needs with Substrate and integrate them into the Polkadot network. Thanks to the parachain architecture, transactions are executed on different chains in parallel. Therefore, they are not limited to the capacity of a single chain: Much more transaction volume is supported across the network. Polkadot’s unique multi-chain architecture reduces congestion and provides high scalability by sharing transactions across different chains. Moreover, parachains also benefit from the common security model provided by Polkadot. The reason for this is very simple: shared security on the Polkadot Relay Chain. In this way, each parachain achieves high-level security without having to establish its own validator network. In short, Polkadot’s parachain-based structure offers faster and more efficient network performance, while also allowing each chain to be customized to meet different needs.

The basic infrastructure of the Web3 vision: Polkadot

The Polkadot project plays a critical role in the implementation of the decentralized internet (Web3) vision. This is because it is one of the first groundbreaking projects in the Web3 field. The Web3 concept, put forward by Gavin Wood, describes a future internet consisting of interconnected decentralized networks where control belongs to users, not monopolies. Polkadot was designed as a Web3 infrastructure protocol that provides the infrastructure for exactly this vision.

An ecosystem is created on the Polkadot network where different platforms and applications can communicate without any central authority. This allows developers to benefit from the power of multiple blockchains simultaneously while developing decentralized applications, or dApps. For example, in the Polkadot ecosystem, a finance application can run on one chain, an identity verification application on another chain, and interact securely via Polkadot. Thanks to such combinations, new innovations are distributed within the scope of the Web3 vision. Polkadot’s self-renewing (fork-free upgradeable) structure and internal governance system also allow the network to evolve over time, in line with Web3’s goals.

Security, governance, DOT coin and staking mechanism

Polkadot network uses an advanced governance and staking model to encourage security and network participation. Thanks to the consensus mechanism called Nominated Proof of Stake, DOT token holders can nominate validators on the network by staking their tokens. Token holders can even become validators themselves. This Polkadot staking process ensures the security of the network, and in return, DOT rewards are distributed to staking investors.

When the features of DOT coin are examined, the most important functions stand out as the ability of this token to be locked to ensure the security of the network (staking) and to grant voting rights in on-chain governance. Polkadot’s on-chain governance system gives DOT holders a direct say in decision-making processes regarding the future of the network. Issues such as network upgrades, the addition of new parachains, or protocol changes are decided by the votes of DOT coin holders. This gives the Polkadot ecosystem a strong democratic governance dimension, and many investors are part of this democratic process. In the meantime, let's give some price information for those who want to buy DOT and have a say in the governance. DOT coin is trading at $4.6 as of May 2025. However, the cryptocurrency saw an all-time high of $55 a little over 4 years ago.

As a result, DOT coin usage areas cover a wide range from staking for network security to governance voting and payment of transaction fees. The mechanisms in the Polkadot network ensure that the network remains secure against external attacks and enable community management. Thus, in general, it increases the value of Polkadot.

Wide ecosystem and strong developer community

Polkadot has created a rapidly growing ecosystem and an active community since its launch. Because there are dozens of parachain projects operating in different sectors on the network. Blockchain projects specialized in decentralized finance (DeFi), gaming, smart contract platforms, digital identity, Internet of Things and many more are available in the Polkadot ecosystem. This rich Polkadot ecosystem creates synergy between projects and offers a comprehensive infrastructure for users and developers.

Moreover, Polkadot hosts an active development community worldwide. According to the analysis, Polkadot is one of the top five cryptocurrency projects with the most developers. A report from Electric Capital found that there are over 800 full-time developers working on the Polkadot network, making Polkadot one of the largest ecosystems in the industry in terms of developer numbers. With such strong developer interest, the Polkadot network remains very vibrant. On the other hand, the Polkadot community actively contributes to the project through forums, governance votes, and grant programs. Organizations such as the Web3 Foundation and Parity also support the ecosystem by offering regular developer training, competitions (e.g. Polkadot Hackathons), and funding support. Putting all these elements together, the foundation of a solid community is formed that contributes to Polkadot’s long-term success.

Who is the Founder of Polkadot?

Finally, it is necessary to answer the question of who is the founder of Polkadot. Dr. Gavin Wood, the founder of Polkadot, is a well-known name in the blockchain world and an innovative computer scientist. Who is Gavin Wood? To briefly introduce, he was one of the co-founders of Ethereum and served as Ethereum's first chief technology officer (CTO). Gavin Wood provided one of the most important technical contributions to the Ethereum project, developing Solidity, Ethereum's smart contract programming language. He is also the author of the Yellow Paper (Ethereum Virtual Machine definition) document that defines the technical infrastructure of the Ethereum network. Wood, who left his position at Ethereum in 2016, charted his own path to realize the decentralized internet vision that was shaped in his mind. Immediately after leaving Ethereum, he founded EthCore (later renamed Parity Technologies), a company that develops blockchain infrastructure software. Parity Technologies continued its work with Ethereum clients, later focusing on Substrate and Polkadot technologies.

Gavin Wood's Polkadot adventure officially began with the Polkadot whitepaper he published at the end of 2016. Wood, with his experience in Ethereum, embodied the idea of ​​a decentralized network where blockchains are connected to each other with the Polkadot project. In 2017, Wood accelerated the development of Polkadot by establishing the Web3 Foundation with his collaborator Peter Czaban. The Web3 Foundation is a non-profit organization that funds Polkadot's research, development, and community management activities. In particular, it became the institutional support point for Gavin Wood's Polkadot vision. Wood also played a role in the implementation of Kusama, Polkadot's test network. In addition, he first tested the innovations to be implemented in Polkadot on Kusama and ensured that they were safely transferred to the main network. In 2022, Gavin Wood stepped down from his position as CEO of Parity Technologies and moved towards taking on a larger role in the Polkadot ecosystem. Wood led the Polkadot project, where he continued to be the technical lead, and implemented significant upgrades to the protocol (e.g. the new open governance model OpenGov).

Frequently Asked Questions (FAQ)

Below are some frequently asked questions and answers about Polkadot (DOT):

• When and why did Polkadot come into being?: Polkadot was created in 2016 by Dr. Gavin Wood to solve the problem of blockchains not being able to communicate with each other. Backed by the Web3 Foundation, Polkadot raised funds through an ICO in 2017 and went into its mainnet in 2020.
• Who is the founder of Polkadot?: Dr. Gavin Wood is the founder of Polkadot. Gavin Wood is also the co-founder of Ethereum and the creator of the Solidity programming language.
• How does Polkadot work, how does it connect with other chains?: Polkadot consists of independent sub-chains called parachains connected to the main chain called Relay Chain. Thanks to this structure, data and assets can be shared between different blockchains. Inter-chain communication is provided with the XCM protocol.
• What is the DOT token used for?: The DOT token has functions such as securing the Polkadot network, earning rewards by staking in the network, and taking an active role in network governance (voting) processes. It is also used as collateral for parachains to join the network.
• Why is Polkadot important?: Polkadot enables different blockchains to work together with each other thanks to its multi-chain architecture. This feature creates a critical infrastructure for Web3 and makes Polkadot an important platform in the crypto world. In addition, Polkadot's customized parachain structure allows a wide range of applications to work more efficiently.

Follow our JR Kripto Guide series for more information about Polkadot's vision and its place in the Web3 world.