Polkadot Auctions Are Live
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The whole world has been talking about the much-awaited Polkadot parachains auction process. Undoubtedly, many experts and investors are on the lookout for the immense benefits this launch will cause in the crypto space.
The launch of this parachains will mark the beginning of an interconnected blockchain process. This would be an important milestone in achieving the longtime vision of Ethereum’s founder, Gavin Wood.
The preliminary steps for a heterogeneous multichain framework are already in motion. For example, Polkadot already has Parachains running successfully on the live-canary parachains network, Kusama. In addition, 11 parachains slot auctions have taken place since its launch on June 3, 2021.
The last technical steps involved in launching parachains on the Polkadot network include settling parachains disputes and auditing the Polkadot network. Both processes have now been completed.
Quick Insight: What Is A Polkadot Parachain?
Parachains are vital components of Polkadot’s framework and vision. They are designed to connect projects to Polkadot by leasing out space on the Relay chain for an extended period of up to 96 weeks. Also, there’s an option for a user to review the agreement on the Polkadot parachains.
In simple terms, parachains are custom blockchains for specific projects which are added to the Polkadot network. These mini-blockchains can be customized for various applications and used in different ways to supply information to the main blockchain. The leading blockchain, also known as the Relay Chain, is considered to be the main support structure for the entire Polkadot framework.
The relay chain controls the network’s security, settlement of transactions, and a framework consensus.
When added to the main structure, the parachains benefit from the main features of the blockchain. Some experts compare what is happening on the Polkadot network to how the Ethereum network has been designed. While both of them feature some similarities, they also have several clear differences.
On the Ethereum network, decentralized applications (dApps) were created, and they function within the limits of the blockchain. However, Polkadot allows developers to create specialized blockchains that can be maintained by using a collator node. These independent blockchains may store the entire history of any parachains and arrange the transaction data for the network into blocks.
Finally, these independent blockchains then go into the Relay Chain.
How Will The Polkadot Parachain Auction Take Place?
The whole world is ready to bid for some space on the Polkadot network. As a result, the creators of the DOT token have set up a schedule for parachains slot auctions. However, the blockchain’s governing council members only recently approved the auctioning process, which fulfills a technical core element in the token’s whitepaper released five years ago.
What Are Parachain Slot Auctions?
You see, parachains are unique layer-1 platforms for blockchains that are based on the Polkadot network. These slots are then linked to the Polkadot Relay Chain.
A parachains slot serves as the access key that developers use in building, adding, or creating projects on the Polkadot blockchain. Since many developers are prepared to build on this framework, the Polkadot development team came up with the idea of an auction.
This strategy will prevent the developers of this innovative blockchain from gifting these slots to wealthy developers. Instead, they are interested in a fair, equitable distribution that gives everyone a fair chance.
During the parachains slot, DOT holders may offer their holdings to support projects that they consider most beneficial to receive a parachains slot. As a reward, the project will airdrop tokens to these users. With each project that becomes a part of the Polkadot framework, the crypto space moves a step closer to developing an interconnected blockchain system.
How Will The Auction Take Place?
The first Polkadot parachains slot auction will take place on 11 November 2021. After the initial batch, the auctions will take place once every week for the next five weeks. Then, the final auction will happen on 9 December 2021.
The initial bidding period for an auction will last for two days. After this, there will be a 5-day pending period. However, an interesting feature of Polkadot’s auction schedule is that the projects can only start building after a month.
The Kusama auction that was held earlier this year allowed projects to onboard quickly. Another unique thing to note is that only a 75% capacity, when compared with Kusama’s, will be offered to buyers. This time around, developers are choosing to stick by quality rather than quantity.
How Many Parachain Slots Will Be Available?
Many people would wish for an unlimited number of parachains slots. Sadly, this may not be possible, at least for now, due to present-day computing constraints. However, the current expectation is that there will be 100 parachains slots available on Polkadot.
But, you shouldn’t expect the Polkadot main blockchain to support 100 parachains slots instantly. Rather, they will undergo a slow integration into the system.
Besides, some parachain slots will not be auctioned. Instead, these will go towards supporting government-enabled common goods parachains and parathreads.
However, future optimizations and upgrades may open up more available parachain slots. Hopefully, the relevant systems upgrades will be available then too.
How To Register For The Polkadot Auction?
Before registering for a parachain slot auction, keep in mind that the slot may either be used as a crowd loan model or an individual bid.
During the registration process, the project has to specify this information:
● Parachain ID/Index
● First and Last Slot
When purchasing a slot for a road loan, the development team would need to input the end of the campaign date. After the expiration of this date, the support tokens will be sent back to contributors if the slot has still not been purchased. For a direct slot purchase, the team will have to identify the exact slot to bid and the amount to bid.