Ever walk into a room and not speak the language of everyone else in the space? That is what life is like for most blockchains. There’s a language barrier that doesn’t allow blockchains to talk to each other. Polkadot (CRYPTO:DOT) is a new cryptocurrency that might just be able to solve this problem and create an opportunity for savvy investors. Polkadot is a blockchain of blockchains.
Let us look at three reasons why Polkadot is a token to watch right now.
1. Polkadot offers a solution to the interoperability problem
Most blockchains operate independently of each other. These networks are closed-loop for a variety of reasons, with security being the top priority for most decentralized networks.
Polkadot allows for trustless communication between blockchains. That is, trust does not need to be placed in any one third party in order for communication across these systems to be effective.
Think of an investor looking to swap Bitcoin (CRYPTO:BTC) for Ethereum (CRYPTO:ETH). Right now, that investor would have to use some form of exchange to facilitate the process. A centralized service such as Binance would have to