Polkadot Soars 18% Overnight Amid Hotly Anticipated Parachain Auctions

October 15, 2021, 10:00 AM AEST - 3 days ago

Polkadot’s price has enjoyed an 18 percent pump in the lead-up to the project’s announcement that parachains are officially ready to launch on the mainnet. This is a massive milestone for the multichain network, led by creator Gavin James Wood (and also Ethereum co-founder), since the release of Polkadot’s whitepaper five years ago.

Auction Dates Proposed for Polkadot Parachains Launch

Polkadot has released its Proposal for First Parachain Auctions. Motion 118 will be a schedule of the first set of parachain auctions on Polkadot and Council buy-in to a recommended strategy for auction rounds on a three-to-six-month basis. Once passed, there will be two batches of auctions: the first will consist of five auctions starting on November 11, with the second lot of six auctions to begin on December 23.

Parachains have already been successfully deployed running on Kusama – Polkadot’s Canary Network – since June this year. In 2019 Polkadot launched Kusama, built with the same code as Polkadot, to attract blockchain contributors and allow developers to build their own custom blockchains, or parachains, offering new projects low barriers to entry – ideal for startups looking to move fast and develop their own dApps at low cost.

What Are the Polkadot Parachains and What Does It Mean?

Parachains are individual layer-1 blockchains that run in parallel on Polkadot, connected to the Polkadot Relay Chain and secured by its validator set. A parachain slot is a scarce resource on Polkadot and only a limited number will be available. To become a parachain on Polkadot a project has to win a Slot Auction, with two years the maximum duration for lease. A full slot is divided into eight lease periods, making the minimum duration that a project can lease three months. A Reddit user has posted an in-depth explanation.

The announcement of parachains on Polkdot has been hotly anticipated by those in the crypto space and breeds bullish sentiment for DOT:

Six months ago, Crypto News Australia reported that Facebook was working on an ecosystem for creators on the Polkadot blockchain to connect the regulated and the unregulated. It will be exciting to see what other projects Polkadot’s new parachains will attract in the coming months.

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