The parachain auction process for Polkadot will begin the second week of November, marking a milestone for the development of the platform. The news boosted the price of DOT.
Network Polkadot is gearing up for some major updates, and the news is favoring the price of DOT, the native cryptocurrency of Polkadot.
This week, the team of developers of said network announced that the parachains are officially ready for release in Polkadot and the long-awaited auction process of parachain, in which spaces are assigned for projects to build on the network, will begin as early as next month.
In a statement, Polkadot Council shared a timeline indicating that the first auction is scheduled to begin on November 11. The development will mark an important milestone in realizing the vision of the co-founders of Polkadot, Gavin Wood and Robert Habermeier, from a frame Blockchain interconnected. In this regard, they highlighted in the statement:
Almost exactly five years after the vision of a multi-stranded heterogeneous framework was first described in the Polkadot White Paper (also known as the Polkadot Paper), parachutes are now officially ready for launch at Polkadot.
Polkadot: parachain auctions arrive in November
It should be noted that parachains are the various individual Layer 1 blockchains running in parallel within the ecosystem Polkadot. These strings constitute the aspect of “multiple chain”Of the innovative architecture of Polkadot. The launch represents the final piece of core technology described in the technical document of Polkadot, and marks the last stage of multi-stage launch process from Polkadot, which started in May 2020.
The parachains or “parachutes” have already been running successfully in Kusama, network “canary” from Polkadot, since the launch of Statemine in June. Since then, 11 auctions of parachains on Kusama, and 2.4 million KSM have been distributed, the token of Kusama, in group loans.
Now DOT, the network’s native asset Polkadot, will be used for the next auctions of parachain. This process is crucial as enables developers to bring their own decentralized finance (DeFi) projects to life over the network. A large list of decentralized protocols is waiting to secure a spot in the auction; including Acala, Manta Network and Equilibrium.
“While I obviously cannot vouch for any particular parachain or attempt to predict winners, Polkadot’s parachain auction model certainly benefits projects that can garner substantial community support through their collective lending mechanism. We saw this in Kusama and I suspect we will see similar excitement for the first parachutes in PolkadotHabermeier commented to CoinDesk in relation to the process.
DOT price rises 20% after the news
The same as Kusama, each seven-day auction in Polkadot It will consist of an initial period of one day and 21 hours, followed by a final period of five days. The bidding ends on the seventh day, when the precise time of auction closing is determined retroactively by a verifiable random chain function (VRF).
The auction can end at any time during the completion period, which avoids the “auction shotsLast minute for a better price discovery. The first five projects to win an auction would be incorporated into Polkadot simultaneously on December 15, 2021.
The news about the upcoming deployment of parachains and the auction process appears to be favoring DOT’s business performance. The native cryptocurrency of Polkadot has risen more than 16% in the last 24 hours and about 22% in the last week. At press time, DOT is priced at $ 41 with a market capitalization of $ 40.6 billion.
Hannah Estefanía Pérez’s version / DailyBitcoin
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