Combining multiple blockchain networks within one unique network aims to establish a fully decentralized and user-controlled private web, and provide an easy way to create new applications and services.
The idea behind Polkadot is to create a basic structure that should enable a large number of blockchains and other chains to securely exchange information or transactions with each other.
The Polkadot protocol consists of 4 main components:
- Relay Chain - the core of the network that allows consensus building, information sharing and security through all blockchains within the network.
- Parachains - independent "chains" that can have their own tokens and that can be created for different purposes. Tokens or data can be communicated and exchanged between them.
- Parathread - works in a similar way to parachains
- Bridges - allow parachains and parathreads to connect and communicate with external blockchain networks such as Ethereum.
The Polkadot network has its own DOT token.