Polkadot (DOT) hosts a 3rd-generation blockchain protocol connecting multiple specialized blockchains into one unified network. Polkadot shares many similarities with the interoperability of Cardano.

Blockchains, by themselves, can only process a limited amount of traffic. Polkadot utilizes a sharded multichain network, meaning it can process many transactions on several chains in parallel, eliminating the bottlenecks that occurred on 1st-generation networks that processed individual transactions. This parallel processing power significantly improves scalability. Various chains connected to Polkadot are called “parachains” because they run on the network in parallel. When it comes to blockchain architecture, cryptocurrencies have varying features and characteristics.

On Polkadot, each blockchain can have a novel design optimized for a specific purpose. That means blockchains can offer better services, while also improving efficiency and security by leaving out unnecessary code, with DOT1 as the middle man. Polkadot builds on what is called a Substrate development framework, which allows teams to develop and customize their projects harnessing various crypto asset blockchains.