The Polkadot blockchain protocol is designed to help other blockchains work together in a single network. Polkadot aims to let different blockchains quickly communicate value or information without an intermediary. For example, the Polkadot blockchain allows Bitcoin and Ethereum to transfer data to one another. It accomplishes this by using parallel blockchains, known as parachains, that take the burden of processing power away from the main blockchain, making the Polkadot blockchain generally more efficient. Proponents believe this could solve some existing cryptocurrency challenges of interoperability and scalability, by processing many transactions on parachains at the same time. DOT is the native utility coin of the network.
The Polkadot network is made up of two kinds of blockchains: the relay chain, where all transactions are finalized, and custom, user-generated chains, called parachains that use the computing power of the relay chain to validate transactions. On top of these, Polkadot has another layer composed of Bridges that enable data to move between different blockchains — and even connect with non-blockchain databases. The network’s many parachains, each of which is like a blockchain unto itself, do a lot of the heavy lifting for the main relay chain. As a result, the Polkadot network can process more than 1,000 transactions per second. As the network grows and more parachains are added, Polkadot should get even faster..