Polkadot, a blockchain project promising to make networks interoperability, took a significant step forward by voting to approve its first auction. Polkadot prices have risen above $40 as the para chain auction date approaches.
- Joe Petrowski proposed that Polkadot prepare for an initial production release of its parachains and crowd loans.
- Each blockchain project is selected to receive one of the following slots: a “slot” given to the winner of the auction. These slots can only be changed through a vote.
- The high bidder determines the winners of auctions during a random selection point in time during the auction.
- The auctions will be segregated into two batches. The first batch will start on November 11; and the second batch will begin on December 23.
Polkadot is a blockchain protocol that enables decentralized networks to work together. Its core is a network that allows users to connect their blockchains.
KEY TAKEAWAYS
- Polkadot’s token climbed above $40 for the first time in five months after the Dot network confirmed a reasonable date for parachain auctions.
- The auctions on November 11 will move the interoperable multichain network closer to a live launch.
- Polkadot parachains can potentially enable new services such as DeFi and NFTs, by exchanging data and communicating with other blockchains such as Ethereum.
Polkadot and the Kusama Network have just released an upgrade that can be done in 8 hours. This is unlike other chains, which usually take months or even years to get ready. Kusama, a sandbox platform for blockchain app developers to test before releasing them on the Polkadot blockchain, recently announced the success of 11 part chain slot auctions.
Polkadot’s Price Reaction to the News
- Polkadot’s native DOT token has reacted positively, with a gain of over 18.5 per cent as of this writing.
- In the previous 24 hours, trading volume has increased by more than 100 per cent. Polkadot’s token broke the $40 resistance for the first time in five months.
- The project set a date for its first parachain auctions, bringing the multi-blockchain structure closer to real-world deployment.
- Dot’s price responsively reacted to the news and rose by 19 per cent, creating an all-time high of $43.56 on Wednesday after the auction announcement. At the time of our latest check on Friday, it was trading at $42.76.
- Parachains are multiple layer 1 blockchains that can communicate with one other and function in resemblance.
- Parachains proffer Polkadot a multichain architecture with certain networks, and they can amalgamate several layers 1 protocol like Ethereum and bitcoin.
To ensure that its para chain technology and process are battle-tested before launch, the Polkadot team has tested them on its guinea-pig network, Kusama. It has now been set as November 11 as a likely deadline for receiving bids to build on Polkadot.
Polkadot’s Statement on Parachain Auction
- Parachains are now officially ready for deployment on Polkadot, some five years after the Polkadot Whitepaper first proposed the concept of a heterogeneous multi chain architecture (aka the Polkadot Paper).
“The Polkadot network can now officially lodge its initial parachains after months of testing and development. This is the first phase toward the network’s complete opening, which is scheduled for November 11, 2021.”
Gavin Wood and Robert Habermeier
- The ‘multi chain’ portion of Polkadot’s innovative multi chain architecture comprises the various, specialized blockchains that connect to the Polkadot Relay Chain.
- These are the last pieces of the technology described in the Whitepaper that was necessary to launch Polkadot.
- Their release concludes the platform’s multi-phase debut, which began on May 26, 2020, with the publication of the first proof-of-authority version of the Polkadot Relay Chain.
Parity’s engineers, Paul Wood and Martin Habermeier announced that all of the technical barriers to the launch of parachains on Polkadot had been met.
What do experts think about the Parachain Auction
- “We’ll eventually see a lot more interoperability between blockchains in the coming year,” Eliézer Ndinga, research head at crypto exchange-traded products provider 21Shares.
- A parachain can be tweaked to do specific DeFi tasks. Plus, what polkadot is attempting to accomplish could allow disparate blockchains to collaborate as part of a single ecosystem, potentially resulting in the “Wi-Fi” crypto acceptance predicted by Cardano pioneer Charles Hoskinson.
- The resolution of the parachain conflicts and the completion of the code audit, according to James Butterfill, financial strategist at CoinShares, are vital to the Polkadot price increasing to near all-time highs.
- “It’s a significant obstacle to clear, as it now paves the way for the parachain auctions,” Butterfill added.
Final Words
- Although some analysts say altcoins like Polkadot are still inexpensive, given their promise for new applications, they have been on a tear this year.
- According to Binance data, the coin has increased by over 852% in 2021.
- One new auction will be held every week in the first round of five auctions.
Polkadot will assign a para chain slot to each auction for a total of 96 weeks, making it a continuous operation.