The crypto industry has been flourishing all over the world, and Montana is no exception. The state doesn’t require any money transmitters licenses to buy, sell, or store cryptocurrencies, making them even more popular among the Montanans.
If you’re from Montana and new to the crypto investing scene, you’ve landed on the right page. This article is dedicated to one of the most popular and promising cryptocurrencies in the industry at the moment — Polkadot.
Stay with us to learn all you need to know about Polkadot, its functionality and mission, and how to buy this virtual currency in the Treasure State.
Table of Contents
What Is Polkadot?
Polkadot is an open-source network protocol that allows users to transfer tokens and arbitrary data across blockchains. This sounds complicated, so let’s clarify what this process entails.
Namely, every cryptocurrency currently has its own individual blockchain. These blockchains are different from one another in nature, they’re not connected, and they cannot communicate with one another.
Polkadot aims to create one universal blockchain that will connect all the existing blockchains into a singular, decentralized network — Web 3.
Polkadot’s network would establish a connection between the existing blockchains, aiming for maximum interoperability. It would allow them to exchange information and transfer diverse types of assets between each other.
If you’re wondering how this would be possible, keep reading.
How Does Polkadot Work?
The network we’ve referenced above consists of several integral elements that make its mission possible. You should be familiar with them before we move on to the topic of how Polkadot functions.
The main chain on Polkadot is called the Relay Chain. The Relay Chain acts as a foundation for all the other blockchains chains on Polkadot — it’s responsible for the network’s interoperability and security.
The other blockchains that communicate among each other based on the existence of the Relay Chain are called parachains.
The reason these parachains can exchange information lies in the bridges. Bridges represent links between the parachains that tie all these components into a network. They can even establish connections to non-blockchain databases.
Parathreads are the last component you should know about when it comes to this structure. These elements add to the overall security of Polkadot’s ecosystem and let parachains participate in establishing the said security.
Polkadot’s native currency is called DOT. These coins have value on their own, but they also allow their owners to become a part of the Polkadot’s ecosystem.
The tokens can give you a chance to have a say concerning the future of the Polkadot project. You can also earn rewards by staking DOT. Your vote’s significance in the protocol’s governance and your rewards’ value depends on how many coins you have and what role you play in the consensus protocol of Polkadot.
The list of possible consensus roles includes validators, nominators, collators, and fishermen. Validators have the greatest and nominators the smallest responsibility in the staking process.
Significance of Polkadot
Polkadot is an innovative project that proposes a unique technology that would change the face of the crypto industry. Here are a couple of reasons this protocol is so groundbreaking and important:
- Scalability — New cryptocurrencies are typically not scalable, resulting in compromised network effectiveness and security. Polkadot’s mission to facilitate transactions across various blockchains solves that problem.
- Blockchain creation — Polkadot’s Substrate blockchain framework makes the process of blockchain creation much easier and faster for developers. It lets them customize their project according to their own needs, launch it, and connect it to the main chain in a matter of minutes.
- Interoperability and versatility — Polkadot’s network allows the transfer of both token and arbitrary data between open and private, permissioned and permissionless blockchains.
- Security — Polkadot’s network protocol allows independently governed blockchains to connect to each other, build a community, and pool their security. Together they establish a security model that allows developers to protect their blockchains as soon as they create them.
- Eco-friendliness — Conventional blockchains consume a huge amount of energy to function. That is not the case with Polkadot. Polkadot’s Proof-of-stake (NPoS) model has one of the lowest carbon footprints among all proof-of-stake protocols.
Polkadot in Numbers
Polkadot was created in 2017 but already enjoys great popularity in the industry. It has remained among the first 20 of the most popular cryptocurrencies in the world ever since its launch. Polkadot currently sits in 12th place on the same list, and its worth is $17.
This crypto’s market cap is over $17 billion, and there’s more than 987 million DOT in circulating supply when this article is being written. Its total supply is around 1.1 billion, and the number of tokens is not capped.
Where to Buy Polkadot in Montana?
You can obtain Polkadot in Montana in two ways. You can use a centralized cryptocurrency exchange platform or buy DOT from a person who owns the coins and is willing to sell them to you. Let’s consider both of these options and their advantages and disadvantages in more detail below.
Centralized Cryptocurrency Exchanges
Two types of exchange platforms work with cryptos — centralized and decentralized. If you don’t already own crypto you can exchange for DOT, you’ll have to buy it with fiat currencies. To do that, you need to use a centralized exchange.
Centralized crypto exchanges are among the most common places where people buy and sell their coins. A ton of them is available on the market, so you must know how to pick the right one.
Here’s what you need to take into account when selecting the crypto exchange platform you want to join:
- Availability in Montana — Make sure the crypto exchange you’re interested in is available in Montana. Since Montana doesn’t require crypto entities to have an MTL to carry or engage in money transmissions, as we’ve mentioned, there are a lot of exchanges that operate in this state.
- Polkadot availability — Check whether the exchange you intend to use works with DOT. This point is pretty self-explanatory.
- Other accepted cryptos — Don’t forget to check what other cryptocurrencies your exchange platform works with. The bigger the number of cryptos you can trade your DOT for, the better.
- Safety and privacy — Look into the security protocols and inform yourself about the KYC procedures your potential crypto exchange uses. You want your money and your data to be as safe as possible.
- Payment options — Examine the list of payment companies the crypto exchange you’re considering collaborates with before you choose to join it. You should have enough options to find the method that suits your needs best.
- Fees — Learn about the fees and/or any extra charges you can expect from your transaction on a crypto exchange platform. It’s important that these conditions fit your budget.
Buying Polkadot Directly
As we mentioned above, there’s another way you can buy DOT should you choose to forgo crypto exchanges. You can find the person willing to sell you DOT and purchase the coins directly from them. This might sound like a path of least resistance, but it comes with serious risks.
Crypto transactions are irreversible, so there’s always a chance you will be scammed. If you’re sure this is the way you want to go, make sure the person you’re buying from is reliable and trustworthy.
Buying Polkadot in Montana — Step-by-Step Guide
You’ll be pleased to know the purchasing process is simple if you’ve decided that crypto exchange platforms are a better option between the two. You can follow our step-by-step guide below to help you take your first step in the crypto world:
- Choose a Polkadot exchange — Select the crypto exchange platform you like the most. Keep in mind all the points we’ve listed in one of the previous sections.
- Find a crypto wallet — Once you buy your coins, you’ll need to find a place to keep them. Do some research, find a reputable crypto wallet, and set up an account.
- Register on the exchange platform of your choice — Open an account following the instructions on the registration page and log into it.
- Purchase DOT — Make a deposit using the payment method you prefer and find the option to buy DOT. You will need to enter the number of coins you’d like to purchase once you’ve selected Polkadot as the crypto you’re interested in purchasing.
- Send your DOT to your wallet — You’ll see the coins you’ve bought in your account balance once the transaction clears. Find the option to send them to your crypto wallet using its unique wallet address.
Montana is one of the rare places in the world and the only US state that doesn’t require you to have a money transmitters license to carry out or engage in money transactions. As a result, buying Polkadot in this state is as simple as it gets. You just need to find a reputable exchange platform or a trustworthy person to buy your DOT from. If you follow the guideline in our article, you’ll have DOT in your crypto wallet in no time.