Polkadot will auction 100 parachains in collaboration with Kusama next week. This has been confirmed by Polkadot.
The news of this 100 parachain auction will be the most awaited moment by the Polkadot community. Why is that?
Before we discuss further what a Polkadot parachain auction is, let’s first discuss what Polkadot and parachain are one by one.
Polkadot is a blockchain project that has the function to combine several blockchain networks so that the system runs optimally. It is also commonly referred to as a parachain.
DOT is the token of this project. Only 1,081,540,591 total maximum DOT supply. This token as a utility for payments in Polkadot.
Parachain is a simpler custom blockchain system. Parachain combines more chains or well-systemized chains. Thus, the customized Blockchain is useful for further optimal chain computational power.
Parachain itself is a custom network created by Polkadot. Parachain forms exist in the form of public blockchains, private blockchains and other data.
A parachain auction on the Polkadot Kusama walnut network will begin on June 15, wrote project founder Gavin Wood in his blog post, a few days ago.
Both Polkadot and Kusama are trying to create a network of 100 interoperable parachains plugged into a central Relay Chain.
Kusama is a network identical to Polkadot except for its role as a test network and experimenting with various technology features before it can be launched on Polkadot.
Parachain will host different decentralized applications that can simultaneously interact with each other via a relay chain. Given that each network can only have a maximum of 100 parachains, the auction will be used to determine which crypto projects can run their parachains.
Mainnet Polkadot was launched in the last year. However, to date, Polkadot has never auctioned a parachain, even though it has been heralded for a long time.
Of course this is good news for the Polkadot community and DOT holders. In fact, on Wednesday 9 June 2021, the increase in DOT transaction volume increased by more than half.
Of the total DOT transactions, Coinmarketcap noted that the increase was 64.29% in one day. DOT volume to USD2.3 billion.
DOT still remains in 9th place as the crypto with the highest market cap of all existing cryptocurrencies.
This is also likely to make DOT prices will increase soon. Because the demand has been seen.
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