Polkadot (DOT) is a protocol for establishing an interconnected network of blockchains, facilitating communication and collaboration among independent blockchains. The project’s overarching objective is to construct a fully decentralized web.

The native crypto powering Polkadot is the DOT token, serving as a governance token. Token holders wield influence over the Polkadot protocol through voting. Additionally, the DOT token is utilized for transaction validation through staking and plays a role in bonding Polkadot’s parachains.

In this blog, let’s learn about Polkadot (DOT) and how you can buy DOT tokens in India.

What is Polkadot?

Polkadot is envisioned as an enhanced version of Ethereum, launched in May 2020 by Ethereum (ETH) co-founder Gavin Wood. Currently overseen by the Web3 Foundation (W3F) and developed by Parity Technologies, both co-founded by Wood, Polkadot operates at a foundational level, providing a base upon which other crypto projects can be constructed. It describes itself as a Layer 0 blockchain, distinguishing it from Layer 1 blockchains like Ethereum, Solana (SOL), and Cardano (ADA).

How Does Polkadot Work?

Polkadot is a decentralized platform for transferring digital assets using a secure public and private key cryptography system. The public key’s hash serves as the recipient’s address, while the private key functions as a password, enabling the authorization and broadcast of transactions. Transactions are consolidated into blocks approximately every six seconds, forming the Polkadot blockchain.

Beyond basic transactions, Polkadot operates as a sharded multi-chain network with a central Relay Chain orchestrating various Parachains. This innovative architecture allows parallel processing of data and transactions across multiple shards, enhancing transaction throughput compared to older blockchain models.

Polkadot’s design enables multiple Parachains to seamlessly integrate, benefiting from the overall network’s security and significantly improving scalability, interoperability, and cross-chain functionality. Unlike traditional blockchains, Polkadot mitigates congestion, high fees, and compatibility issues.

The platform employs a Nominated Proof-of-Stake (NPoS) consensus mechanism, rewarding users for staking DOT tokens rather than relying on mining rewards. Stakers can operate Validator nodes for network maintenance, Collators manage Parachain nodes, and Fishermen nodes monitor the network. DOT holders can stake tokens as Nominators, selecting up to 16 Validators as trusted candidates. Validators, in turn, produce new blocks, validate Parachain blocks, and ensure finality, creating a robust and efficient governance system for automatic network upgrades without resorting to hard forks.

Polkadot vs. Ethereum

While Ethereum is a smart contract platform primarily targeting decentralized finance, Polkadot takes a different approach by providing a framework for easily constructing specialized blockchains. Each blockchain can independently host its smart contracts, similar to Ethereum, with the added capability of connecting across diverse networks.

Both platforms cater to developers interested in building Decentralized Applications (DApps) and aim to address scalability issues through a multi-layer architecture. Ethereum’s layer-2 rollups resemble Polkadot parachains. However, a notable distinction lies in Ethereum rollups lacking shared security and true interoperability, features offered by Polkadot parachains. Additionally, Ethereum Layer-2 networks often exhibit lower decentralization.

Polkadot and Ethereum embrace Proof-of-Stake as an energy-efficient blockchain security mechanism compared to Proof-of-Work. Polkadot employs a unique system called NPoS, which enhances security and contributes to decentralization and fair representation. Importantly, NPoS is more inclusive, making it accessible to smaller stakeholders with fewer tokens to contribute.

Polkadot Tokenomics

The initial distribution of DOT tokens is outlined as follows:

• Private Sale Investors receive 3.42%.
• SAFT Investors are allocated 5.00%.
• Auction Investors hold 50.00%.
• Future Sales are allocated 11.58%.
• The Web 3 Foundation holds 30.00%.

Buying Polkadot (DOT) in India

Below are a few simple steps you can follow and buy the DOT token in India with WazirX, India’s most trusted and widely used crypto exchange.

The best way to buy DOT tokens is by depositing INR in your WazirX wallet. Alternatively, you can also buy DOT using P2P trade; to get answers to all your queries related to the P2P trade, click here!

Step 1 – Sign-Up on the WazirX platform

To begin buying and selling DOT, you must sign up for an account on the WazirX platform. If you already have an account, you can log in directly.

For your reference, here’s how you can open an account on WazirX.

Step 2 – Set up your account security by verifying your email address.

This step is about verifying your email address. After you sign up on the WazirX platform, you’ll get a verification link on your registered email. By clicking on that link, you’ll get two options to ensure the security of your account – the authenticator app and mobile SMS.

Note: The authenticator app is a more secure way to stay safe when compared to mobile SMS because there’s a risk of delayed reception or SIM card hacking.

Step 3 – Complete the KYC process.

After choosing your country, you can proceed with completing the KYC process. Click here for a detailed overview.

Note: You must complete your KYC to be able to trade P2P or withdraw funds on the WazirX app.

Step 4 – Add funds to your WazirX wallet.

To add funds, simply go to your account on the WazirX app or web. Click on “Funds” and then on “Deposit INR.”

You can deposit INR using any mode (NEFT/ RTGS/ IMPS).

You can also buy DOT through P2P to the WazirX wallet. The DOT will act as funds to help you buy your favorite cryptos.

Step 5 – Finally, buy DOT on WazirX.

You can now easily purchase DOT tokens using INR Deposits. In the case of P2P trade, check DOT to INR here and USDT from here.

After logging in to your WazirX account, you can choose INR from the “Exchange” tab. You can also check all the price charts, order book data, and an order input form on the right side of the screen.

Click “Buy” after entering the amount and checking the total INR amount to be paid.

Your order will be placed according to the price you have input. And, in the case of P2P trade, a seller willing to sell at a price will be notified, and then you can exchange the tokens using P2P.

The order might take a few minutes to complete, but as soon as it is executed, you will receive the DOT Tokens you purchased in your WazirX wallet.

Happy Trading!

Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.