A parachain auction process, in which projects will be assigned slots for building on the Polkadot cryptocurrency network, is set to begin next month.
According to the Polkadot Council, the first auction will take place on November 11 and will continue through December 2021. On October 14, a proposal was submitted to the Polkadot Council forum.
Looking back, the parachain auction process marks a major step in realising Ethereum co-founder Gavin Wood’s aim of a decentralised blockchain architecture connected to other blockchains.
“Almost exactly five years after the idea of a heterogeneous multichain architecture was first outlined in the Polkadot white paper, parachains are now officially ready for deployment on Polkadot,” Polkadot inventor Robert Habermeier said in a blog post.
The last technical steps before launching parachains on Polkadot were the settlement of parachain disputes and the completion of Polkadot’s thorough code audit, both of which were successfully completed.
A Simple Guide Of Polkadot Parachains
Parachains are customisable, project-specific blockchains that are integrated into the Polkadot (DOT) networks.
Polkadot networks are based around parachains, which may be customised for a number of different use cases and feed into the main blockchain, known as the Relay Chain, which serves as the network’s brains.
Because the Relay Chain is in charge of the network’s shared security, consensus, and transaction settlements, any parachains that are integrated into the Relay Chain benefit from the Relay Chain’s fundamental characteristics.
The possibility for users to complete transactions more quickly and at a lower cost, as well as enabling parachain developers to create blockchains that do not expose user data to the public network or do not have to manage a large number of transactions, are some of the advantages of utilising parachains.
Parachain Auctions Awaiting
Parachains are blockchains that have been optimised for specific use cases and often support their own digital tokens. To be considered for inclusion as a parachain on Polkadot, projects must participate in a parachain auction.
Moonriver, an Ethereum-compatible blockchain environment for Kusama, a DeFi hub that would enable users to earn a return on their cryptocurrencies and serve as a credit-giving infrastructure for Kusama, are examples of companies seeking to participate in auctions and acquire a parachain spot.
Similarly to the Kusama auction, each seven-day Polkadot auction will be split into two parts: a one-day and twenty-one-hour starting period and a five-day ending period.
Because the auction could end at any moment during the last period, “auction sniping” for better price discovery is prohibited at the last minute.
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