Polkadot solves one of the critical issues of the crypto space – interoperability. The Polkadot platform provides an ecosystem of interconnected blockchains. Polkadot was founded by Gavin Wood, Peter Czaban, and Robert Habermeier in 2016. Gavin Wood also happens to be a co-founder of Ethereum and the creator of the solidity language.
Polkadot transactions are confirmed and validated via the nominated Proof-of-Stake algorithm. The Polkadot ecosystem has one relay chain wherein protocols may connect to it via their customizable Parachains. Each parachain is customizable enough to run its own network rules, mint tokens, and run dApps. The native token of Polkadot is DOT which allows projects to bid for a slot in the parachain auctions. DOT is an inflationary token with an unlimited supply.
As long as two people have DOT-compatible wallets they can transact easily with each other.