The Polkadot Project Is Bringing Some New Solutions To Crypto
Polkadot is a project that is attempting to connect a bunch of different blockchains together
What is Polkadot? DOT Explained with Animations
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Sep 18, 2021
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Polkadot DOT Explained With Animations
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FULL VIDEO TRANSCRIPT
00:00
you know how we have covered a ton of
00:01
different blockchains like solana and
00:03
tezos and cardano and monero and it just
00:06
seems like there’s a never-ending list
00:08
of these coins and platforms for you to
00:10
throw your money at basically each one
00:12
does something a little different but
00:14
they say they’re the next new and crazy
00:16
idea that will solve the scalability
00:18
trilemma well polka dot offers itself as
00:21
something actually new they plan to be
00:23
the very first layer zero solution we’ll
00:26
talk about what that means in a bit but
00:28
first welcome to whiteboard crypto the
00:30
number one youtube channel for crypto
00:32
education and here we explain topics of
00:34
the cryptocurrency world using analogies
00:37
stories and examples so that you can
00:39
easily understand them in this video we
00:41
are going to explain what polka dot is
00:43
how it plans to solve the big problem of
00:46
blockchains talking to each other and as
00:48
always at the end we’ll get into the
00:50
tokenomics of the dot coin and what that
00:52
means for the future price in crypto we
00:55
see an awful lot of emphasis given to
00:57
names and sometimes they can seem a
00:59
little odd the polka dot blockchain name
01:02
can actually be a huge asset to help
01:04
beginners visualize what it’s actually
01:06
about you can probably guess where this
01:08
is going polka dot is kind of similar to
01:10
you know polka dots the fabric pattern
01:13
featuring a blank background with
01:14
scattered dots is a good starting point
01:16
to visualize this project that’s because
01:19
right now crypto is a little unfriendly
01:21
we have a lot of these competing
01:23
projects doing similar things using
01:25
similar blockchains working in isolation
01:28
each of these blockchains can basically
01:29
be seen as one individual dot but that’s
01:32
just the start the reason polka dot is
01:34
important is because it lets us connect
01:36
all these chains with each other so
01:39
imagine you have this huge field of
01:40
polka dots but you could actually draw
01:42
lines in between all the dots and start
01:44
to connect them each dot would represent
01:46
an individual block chain and drawing
01:48
lines between them all connects all of
01:50
these different projects now you might
01:52
be wondering what problem does this
01:54
actually solve well one of the biggest
01:56
problems we constantly see in the crypto
01:59
space is a lack of what they call
02:01
interoperability the problem is like the
02:03
problem in early personal computers
02:05
before we even had the internet we have
02:07
all these blockchains hanging out like
02:08
stars and space drifting around without
02:11
any actual way to interact with each
02:13
other polka dot is basically a way to
02:15
make it easy to create and connect
02:17
blockchains to each other along with our
02:19
example computers were great but the
02:21
ability to actually send and receive
02:23
information between two different
02:24
computers really got people on board
02:27
polkadot is betting that the same thing
02:29
is going to be true for blockchains
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bitcoin and ethereum and cardano and all
02:33
the other big chains might be great on
02:35
their own but they need to be able to
02:37
interact with each other easily this is
02:39
where we get into the polka dot
02:40
blockchain which actually serves as what
02:42
they call a layer zero function think
02:45
about it like a neighborhood we have our
02:46
little crypto neighborhood with all our
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blockchains basically like individual
02:50
houses but how do all these houses all
02:52
get electricity water and roads so that
02:55
they’re all connected polka dot wants to
02:56
get even more fundamental than layer one
02:59
individual blockchains and just give
03:01
them an easy way to connect them all
03:02
together this layer zero foundation is
03:05
intended to make building and using
03:06
blockchains easier so now we kind of
03:08
understand how it works how does polka
03:10
dot actually work at its core polka dot
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is just a proof of stake blockchain that
03:15
connects other blockchains to each other
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they’re all connected but how do they
03:19
actually become connected how do they
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maintain their connection and what does
03:22
being connected actually do for those
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blockchains we’re going to answer each
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one of these questions by talking about
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two main components of polka dot the
03:29
relay chain and the many different para
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chains that exist on the network think
03:34
about it like this the polka dot network
03:36
actually works like a hub and spoke
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model for those unfamiliar with this
03:40
analogy this basically means that there
03:42
is one center and many different
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branches coming off of the center for
03:46
polka dot the hub or center is the relay
03:49
chain this is the basis of the network
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where all the different para chains come
03:53
to achieve consensus as we mentioned
03:54
before polka dot is a proof of stake
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blockchain and requires that validating
03:59
nodes or basically people that want to
04:00
participate in the network stake at
04:02
least ten thousand dot coins which is
04:05
pretty much the token used on the polka
04:07
dot network kind of like ether on
04:08
ethereum this ensures that those
04:10
validating the blockchain are
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financially invested in its future and
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will not attack it or cheat so when all
04:17
these validators come together to
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achieve consensus it happens right in
04:21
the relay chain but if the point of
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polka dot is to connect different
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blockchains and dabs which are
04:26
decentralized applications then how do
04:28
these things maintain their own
04:30
individual unique rules and use cases
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well that is where para chains come in
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para chains are the spoke part of the
04:37
hub and spoke model that we mentioned
04:38
earlier the pair of chains go and do
04:40
their own thing whatever that use case
04:42
of their specific blockchain is and then
04:43
they come back to the relay chain for
04:45
everything to sync up gavin wood who is
04:47
the founder of polkadot describes this
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process like an office the employees in
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an office will have their own specific
04:53
jobs that they do by themselves but
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every so often they come together and
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sync up and coordinate their work with
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meetings or phone calls para chains are
05:01
simply timed to meet up with the relay
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chain every so often to make sure that
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everything is secure and on the same
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page in fact this shared security is a
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huge part of what makes polka dot
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attractive instead of having to secure
05:13
your own network secure funding and
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figure out a million other details
05:17
polkadot makes it easy to set up
05:19
parachains quickly and easily which
05:21
reduces the feedback loop time already
05:23
you can see that polka dot is set up to
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be very responsive with new ideas and
05:27
experiments which definitely makes it
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very robust and in some ways
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anti-fragile the two main tools that
05:33
allow polkadot to change and adapt
05:35
quickly and thoroughly are the treasury
05:37
and its test network kusama now
05:40
according to gavin wood kusama has a
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live fast dai young attitude and
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embraces chaos normally blockchain
05:46
projects want to emphasize their
05:48
reliability and security to counter the
05:50
typical connotation that comes with
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being a crypto project now this isn’t to
05:54
say that polka dot is not reliable or
05:56
secure but that they recognize the time
05:58
and place for experimentation and
06:00
adaptation let me make it simple for you
06:03
kusama is basically a practice network
06:05
now actually a lot of blockchain
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networks have things like this where
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users can test different things before
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they actually get launched on the real
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network the interesting thing about
06:14
polka dots test network kusama is that
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kusama has real stakes the amount of
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money and stakes are much lower than the
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real polka dot network but it gives
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people enough of an incentive to not
06:25
play around too much and actually try
06:27
things that they are both ready for the
06:28
real world and maybe a little risky also
06:31
kusama isn’t just a jv version of polka
06:34
dots varsity platform because it shows
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which things are working and which
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aren’t it actually ends up having a
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significant influence on the development
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of the real polka dot network so
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basically kusama is just a test net for
06:45
pokedon the engineers might get upset at
06:47
me for saying that though let’s move on
06:48
to the treasury now we’ve actually
06:50
talked about treasuries and many other
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blockchain projects like cardano an
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official treasury is useful because you
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know that when you are using the
06:57
blockchain to engage in transactions the
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fees from those transactions are helping
07:01
the network as a whole these funds can
07:03
be used for a variety of different
07:05
reasons like community building and
07:06
outreach marketing security and software
07:09
development basically those who want to
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make changes can use the funds from the
07:13
treasury by sending a deposit and then
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their deposit is refunded if the changes
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are accepted from the treasury and
07:19
kasama to its fundamental basis polka
07:22
dot clearly wants to position themselves
07:24
as a platform for innovation
07:26
interoperability scalability and
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experimentation
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to me it’s actually a fresh idea in the
07:32
world of crypto that may end up being
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the idea that ties everything together
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and actually creates a massive
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interconnected crypto ecosystem i know
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that sounds crazy but it’s probably the
07:42
best way i could put it personally i’m
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quite curious to see how this all plays
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out oh and as we in this video we wanted
07:48
to let you know about a secret project
07:50
that we’ve been working on if you’re new
07:52
to the world of decentralized finance or
07:54
want to learn about how to make money
07:55
using cryptocurrency we actually
07:57
recently put together a guide for
07:59
beginners that pretty much explains
08:01
important ideas and very simple topics
08:03
if you’re interested you can grab a copy
08:05
of that guide for free at
08:06
whiteboardcrypto.com but you don’t have
08:08
to if you don’t want to anyways thanks
08:10
for watching we hoped you enjoyed this
08:12
video we really hope that maybe you’ve
08:14
learned something and most of all we
08:16
hope to see you in our next video
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you