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    The Auction For The Slot Of The Polkadot Parachain Has Ended

    Polkadot Parachains Auction

    The auction for the fifth slot of the Polkadot parachain has ended. It means that the first round of parachain auctions was successfully finished. The first five auctions took place between November 11 and December 16, 2021. On December 18, five winners (Acala, Moonbeam, Astar, Parallel Finance, Clover Finance) integrated into the main Polkadot network and block production began.

    Back in 2016, a development team led by Gavin Wood, one of the creators of the Ethereum project, began work on the Polkadot project. Today Polkadot is not just a cryptocurrency, but a huge ecosystem that includes two working "parent" blockchains, dozens of projects launched on them and the DOT token itself, which is in the TOP-10 cryptocurrencies in terms of capitalization.

    Polkadot is an open-source decentralized blockchain, a fundamental network that allows for the development of parachains on its basis, thereby simplifying the development of blockchains for new projects. Polkadot network connects blockchains into a single space that allows you to quickly and safely process and exchange data from different blockchains.

    Polkadot developers have implemented the ability to create networks of other projects based on their blockchain. These derived networks are called parachains. The ecosystem of parachains is based on a single zero-level blockchain – "Relay Chain". This level provides uniform standards in security and interoperability of other blockchains. 

    Polkadot-based parachains are created by project teams using a special open library of Substrate tools. After creation, such a parachain is attached to the main blockchain - Relay Chain and thus is embedded in the general infrastructure of projects based on Polkadot and can interact between them.

    In total, it is planned to support about a hundred slots for blockchains, and in order for the parachain to be added to the network, it needs to occupy one of these slots. The right to occupy a slot is played out between candidate projects at special auctions. Buying a slot is a very expensive business: even considering that the funds are returned, teams often resort to attracting user funds, offering tokens of their projects as a reward. 

    The second round of auctions will start on December 23rd. The participants are represented below:

    Round 2, parachains auction

    Source: Parachains.info

    The content of this article is for informational purposes only and should not be construed as investment advice. We ask you to do your research. This text is not a guide to action. The author's opinion may not coincide with the opinion of CoinJoy.

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