Polkadot (DOT) is a software that scales blockchain interoperability much like Cosmos and Ethereum, powered by the Polkadot (DOT) token. Polkadot utilizes a sharding multi-chain method where secondary chains called "parachains" can be customized and routed back to the main chain. This means many transactions can be completed in parallel, which speeds up processing time. The network uses a NPoS (nominated proof of stake) consensus mechanism.
Polkadot's multichain protocol makes transferring data or any asset, not just tokens, possible. This functionality is intended to facilitate a fully decentralized private Web 3.0 that is controlled by the Polkadot community. The protocol design also makes it easy for developers to create custom blockchains that are connected to the Polkadot network.
With a current supply of 1 billion tokens, DOT is used for governance, network operations and staking. DOT holders can vote on network fees, auction dynamics, parachain schedule, upgrades and fixes or stake their DOT to receive rewards for validation transactions.