Polkadot hits a new all-time high of $51 ahead of its very first parachain auctions getting approved

By November 2, 2021Polkadot
Click here to view original web page at www.businessinsider.in
  • Polkadot’s price hit an all-time high of $51.47 today.
  • The rally in the Polkadot’s coin, DOT, comes amid the impending vote that will allow parachain auctions on the network.
  • If approved, DOT developers will be able to register their projects on the parachain and get funding for their projects from within the community.

Polkadot’s coin, DOT, hit an all-time high of $51.47 today, according to CoinMarketCap. Polkadot’s has been going ‘to the moon’ in expectation of an upgrade that will allow a parachain auction.

A parachain is an individual blockchain on the Polkadot ecosystem. Parachain auctions, in turn, allow DOT developers to register their projects on a parachain and get crowd loan funding for their projects — provided the governing Polkadot Council gives the idea its green light.

Simply put, it’s how developers can score their own slot, to build their own use case, within the Polkadot network.

At the time of writing this article, the vote is a unanimous ‘aye’ with a little more than 19 hours left on the clock. If approved, Polkadot’s very first batch of parachains is set to go on for five weeks, with one auction every week. Overall, there will be 11 auctions released in two batches.

Polkadot hits a new all-time high of $51 ahead of its very first parachain auctions getting approved
Polkadot's vote on the referendum to upgrade the network to v9122

What’s the big deal about parachain auctions?

Parachain auctions would open the flood gates to a host of new use cases — 11 in total. It will also up the competition to allow better and more efficient projects to come into the fold.

One of the unique characteristics about the Polkadot network is that it allows arbitrary data — not just tokens — to be transferred across blockchains.

Polkadot doesn’t place any restrictions on how a parachain can be designed, except that it runs on the Polkadot blockchain. This means any project that gets listed can have its own design, governance process and be optimised for its specific use case. It can be a private network or a public one, for enterprises or communities, or simply a platform for others to build applications on top of it.

Picasso, for instance, raised almost $45 million dollars as a parachain for Kusama — Polkadot’s canary network, akin to a sandbox environment where developers can experiment with their code. Its goal is to “deliver a comprehensive decentralised finance ecosystem to Polkadot.” Simply put, it’s a platform where other developers can churn out DeFi applications.

The co-founder of Polkadot, Gavin Wood and Robert Habbermeir, announced that the network is ready to support its first parachain during the sub0 Online conference, on October 13. After which, the proposal to allow parachain auctions was submitted by the governance member Joe Petrowski to the Polkadot Council.

At the time of writing this article, Polkadot’s coin is down to $48.16. According to FXStreet, this is to be expected and may be followed by DOT making a bull run of 100% to $95, with the possibility of a run-up to the $100 psychological level.

After Amitabh Bachchan and Rajinikanth, Sunny Leone becomes the first Indian actress to venture into NFT

Squid Game cryptocurrency trading at $0, scammers make $2.1 million

Facebook’s Metaverse announcement is giving blockchain games a boost

All Today's Crypto News In One Place