These four coins I am holding for the long term and never going to sell them for 5–10 years.
Polkadot recently announced the start of its parachain auctions. So this is literally going time for this blockchain.
Parachain auctions are where certain projects will be given a much sought-after slot to build their blockchain project on top of Polkadot.
And the first round of auctions will be on November 11th, where five slots will be granted to projects that will then be boarded on December the 15th.
This announcement followed the successful testing period of parachains on the Polkadots test chain called the Kusama network.
So this is great news for Polkadot being one step closer to building out a network of blockchains built on top of the Polkadot base layer.
Parachains, once built, will enable many different specialized blockchains to be built up over time. All with Polkadot at the center, providing base layer consensus and settlements.
Polkadot’s promise is a web of blockchains connected to the relay chain at the base. The power chains on top can have their own specializations and be built for a unique set of use cases and even though these will have their own coins and ecosystems.
They’ll all be interoperable thanks to being built on Polkadot and with external chains through the use of token bridges. Polkadot believes that these parachains should benefIt from the natural business competition.
So these slots can only be leased by developers for two years, and after time, they’d need to bid again for the lease.
They could win that auction, or they may not, as the case may be. These projects will use DOT coins to bid on the auctions, and the winner’s DOT will be locked in the Polkadot network for the duration of the lease.
The Polkadot team targets around 20% or so of all DOT coins to be locked in on behalf of these parachains.
And they’ll be opening more slots over time to eventually arrive at a target of around 100 parachains on the network, although this could also grow over time.
Some projects have already gone through all of this process during the testing phase on Kusama. İncluding Karura network, the DeFi hub of Kusama, and Moonriver network, which developers can use to deploy their Ethereum smart contracts on Kusama.
We’ll see these projects get deployed on the Polkadot main chain in the coming months, especially with the upcoming Polkadot Kusama bridge, which should be here by the end of 2021.
There are well over a hundred projects that may bid in the parachain auctions and want to launch on Polkadot, including some huge names like Chainlink Compound Finance and some new names that will be looking to implement DeFi NFTs gaming and Dex on the main Polkadot network.
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DeFi is about to blow up on Cardano as Dexs gets closer and closer to going live on the blockchain. IOHK’s Twitter page posted a video a few days ago with the caption “DeFi done right.”
But there’s no official announcement yet for what’s soon to launch on Cardano. So we don’t need that though we know what’s happening. We do know that with some of the DeFi projects on the network.
They’re actually starting to launch very soon, starting with Occam5. Which launched its demo with a complete solution to Cardano’s concurrency issue concurrency allows multiple transactions to be processed at once.
So obviously, you can’t really have a very good decentralized exchange without that. The concurrency issue is inherent to the accounting model that Cardano uses, which is called UTXO.
So It was a fundamental challenge Dexs had to solve before anything else, but Occam has proven that It can be done, and It’s good news for both developers and the community, and that was never in doubt.
Occum is not stopping with solving a problem on Cardano, though, as they’re also in talks with Coti to implement the Djed, which is the most awaited stable coin on the network.
This partnership aims to launch trading pairs for the Djed on the Occam Dex and for the stable coin to be the major provider of liquidity for dapps on Cardano.
Stable coins are vital for the sustainability and growth of Cardano’s network of dapps and DeFi. So the success of this partnership might speed up the arrival of a booming ecosystem on Cardano.
I fully expect other stable coins like usdc and usdt also to be launched on Cardano. Cardano is open source, and anyone can do whatever they want on the network. Those are some big stable coins. I fully expect them to launch a version on Cardano as well.
Nervos also launched a bridge connecting Cardano and Ethereum called Force bridge, which is awesome, and everyone’s trying to take value off of Ethereum, of course.
This will allow for the transfer of value between Ethereum and Cardano. So now, when you send an asset from Ethereum, It will get locked into a wallet in Ethereum, and then tokens of the same value will be minted on Nervos and sent to your wallet address on Cardano.
This will become an avenue for Cardano to get value from Ethereum and vice versa. And we can actually see that interoperability is currently the name of the game in crypto, and It’s really interesting to see how all of this will unfold.
These are just a few of the upcoming DeFi, dapps, and integrations on Cardano but what’s more important is the current state of the network, which is also looking good.
First, with the adoption of its native coin ADA, which was actually one of the most adopted cryptos in the UK with an 11 percent increase from q2 to q3 this year.
This is huge considering the UK had just been banning all things crypto last year, so this is a good sign of strength consiDering that we want to do what we want with our money, and we won’t let any commies tell us what to do.
Cardano has also been showing up on the NFT party, though with its first million-dollar sale. This is awesome with a space bud piece that sold for 510.000 ADA.
Since the NFT marketplace cNFT started, people have spent over 50 million ADA on almost 300 000 NFTs, and daily transactions haven’t gone below a million dollars since the beginning of October.
That’s good stats, but you know sure Opensea is racking up tens of millions of dollars daily, but It’s been around for a while and is now opening up to different blockchains. So CNFT numbers are pretty good for a Cardano exclusive marketplace.
Ethereum and many people may think that this is following the price of bitcoin, but there is a deeper and fundamental reason why It’s still going strong despite the apparent lack of news compared to other chains.
Compared to the younger projects like Cardano or Solana, people have moved on temporarily from Ethereum’s hype as It becomes more mature as a blockchain for sure.
But we should not forget, though, that Ethereum did all this crazy stuff that the younger blockchains are doing right now. So before them and now, It’s in a stage where It’s maturing and attracting serious amounts of value which we can see from the real data.
People always talk about Ethereum’s high gas fees and how it will lose a huge number of users because of a lot of blockchains providing a cheaper option.
But cold hard data tells us otherwise as daily transactions on Ethereum have been consistently high near all-time highs and haven’t gone below a million transactions per day since June.
Sure, gas is a huge factor, but people seem to be staying loyal to Ethereum because, let’s face It, all the best dabs are right there. And Ethereum 2.0 will fix a lot of these issues over the next six to 12 months.
There also seems to be more and more new people on Ethereum as there have been a hundred thousand new addresses created daily since June, so there’s a consistently growing user base for Ethereum dapps.
This data means growing demand for Ethereum, but let’s talk about supply coming in December is the difficulty bomb that will make mining Ethereum almost impossible. So miners will be forced to create nodes in preparation for Ethereum’s full transition to proof of stake.
This will temporarily make the supply of Ethereum increase slower and with the eth burn following ERP 1559 approaching 2 billion dollars. So there could be a massive supply squeeze during this move over to proof of stake on Ethereum.
Fourth on this list is Binance which just launched a whopping billion-dollar build-all program to grow its huge network.
By investing in talent development incentive programs, incubation programs, and dapps. 100 million dollars of the billion will be used to mentor developers, educate crypto investors to provide scholarships in universities for crypto-related courses.
The entire crypto industry is still very young, so Binance hopes to push crypto adoption with obviously them at the center, hopefully benefiting the most.
Another 100 million will be for liquidity rewards and Derivatives projects. So we have a project called Mcdex.io and Deri. Finance and these will be the first Derivatives platforms to receive an allocation from the program.
And a portion of the fund is also set to provide liquidity rewards to blockchain users.
This is similar to other incentive programs that we’ve seen on Ethereum dapps, where you’ll get extra tokens and rewards for putting your liquidity on the platform.
So Binance might be giving away some bnb on Mcdex and Deri, plus some other applications.
Binance created its builder program to grow the BSc ecosystem, and It has seed funded more than 40 projects and incubated 60 more since inception.
Binance has also funded over 200 startups through its hackathons and grant programs. And this billion-dollar project is just going to accelerate that even more.
The remaining 500 million of the billion to be spent will be used to develop decentralized computing gaming metaverse and financial services.