Polkadot Sets Launch Date for Initial Parachain Auctions, DOT Soars 17% Ahead of Crypto Market
Polkadot is set to bring its full suite of solutions to its users. This week, the blockchain’s developers announced that they would be rolling out auctions for parachain slots from next month.
T-Minus 4 Weeks
In a tweet, Polakdot’s developers explained that the development came after the blockchain’s governance council members ratified. Auctions will begin on November 11, bringing a five-year journey to an end for Polkadot and its developers – Parity Technologies.
Prachains are central to the operation of Polkadot, and they function as independent blockchains that run in tandem with the main Polkadot network. While these parachains operate semi-autonomously, they still rely on the central network for transaction validation and security.
The Polkadot blockchain can improve scalability and transaction speeds while maintaining security using the parachain system. It is the blockchain’s approach to solving the famous “blockchain dilemma.”
Polkadot founders Robert Habermeier and Gavin Wood said at the Sub0 Conference that the blockchain can now implement parachains. A governance committee member named Joe Petrowski eventually put forward the motion to launch the parachain auctions, and it has now passed.
The auctions will begin on November 11 and run for five weeks as part of the release schedule. The initial round of bidding will last for two days, after which a five-day ending will ensue. All the auctions are expected to end on December 9.
There is a lot of optimism for Polkadot’s parachain auction. The blockchain’s canary network – Kusama – launched its auctions earlier this year, and the entire process went off without a hitch. Kusama functions as a testing environment for projects looking to launch on Polkadot eventually. With both chains running on similar technology, there’s every reason to believe that Polkadot’s auction will be as seamless as possible. KSM -1.70% Kusama / USD KSMUSD $ 33.07
-$0.56-1.70% Volume 13.27 m Change -$0.56 Open $33.07 Circulating 8.47 m Market Cap 280.11 m 1 y DeFi Hub Acala Network Secures First Spot In Polkadot’s Parachain Auction 1 y Bitcoin’s Longest Slump Since May Severs its Pandemic-era Correlation With Tech Stocks 1 y Big Week Ahead? Bitcoin Rallies Towards ATH, Ether Sets A New High, Crypto Marks Hits $3 Trillion
The War of the Blockchains
Polkadot's imminent auction is just the latest in the line of developments coming from the blockchain space. Over the past few months, there has been massive attention drawn to “Ethereum killers” – essentially, blockchains that look to usurp Ethereum and become the top choice for developers.
A little over a month ago, the Cardano blockchain made a massive jump as it launched smart contracts via its Alonzo hard fork. Since then, the blockchain’s developers have announced one partnership after another as they hope to improve its adoption – especially in the decentralized finance (DeFi) and non-fungible tokens (NFTs) space. ADA -0.80% Cardano / USD ADAUSD $ 0.36
$0.00-0.80% Volume 259.03 m Change $0.00 Open $0.36 Circulating 34.73 b Market Cap 12.44 b 1 y Bitcoin Is Back Above $51k and Ether $4,100 as The Cryptocurrency Market Goes Green 1 y Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows 1 y Solana (SOL) Bucks the Trend, Along With Tron (TRX), by Recording Highest Inflows After Bitcoin (BTC): Report
Of course, this doesn’t mean that any of these Ethereum killers would eventually take its crown. Ethereum is also in the midst of a massive upgrade, which will see the chain move to a Proof of Stake (PoS) model.
Ethereum hit a major milestone in August as the blockchain successfully implemented its London hard fork. The fork is a major upgrade in the transition to Ethereum 2.0, introducing some scalability measures and implementing a deflationary model for ETH tokens. While many believe that Etheruem 2.0 will make the Ethereum blockchain more scalable, we’ll have to wait and see. ETH -0.43% Ethereum / USD ETHUSD $ 1,754.72
-$7.55-0.43% Volume 8.66 b Change -$7.55 Open $1,754.72 Circulating 122.37 m Market Cap 214.73 b 1 y Coinbase Predicts Substantial Growth of Newer L1 Chains & Institutionalization of Regulated DeFi 1 y A Possible Crypto Recovery Moving Into New Year, Risk-on Sentiments Send The Stock Market to Another Record High 1 y The Sandbox Game Is Migrating to Ethereum Sidechain Polygon and Launching A DAO in 2022
The news of Polkadot setting the launch date for parachains sent the DOT token soaring. While the entire cryptocurrency market is in the green, DOT is up nearly 17% on the day. Currently sitting at $41.36 with $3.24B in real volume in the last 24 hours.