Polkadot’s coin went up to the forty-dollar mark this week. This record is the first after a few months and is happening at the same period as the network’s set of their parachains auctioning date (Nov 11).
Parachains (Parallel Chains) are basically Layer one blockchain operating parallel with the main network while transferring information to one another (because of its Cross-Chain composability).
Parachains function on the Polkadot and Kusama multi-chain networks, including others. These parachains have many advantages, including;
- Scalability
- Communication with other Polkadot parachains
- Flexibility
- Interoperability
- Free adoption of Governance models
- Sharing security of the whole network
Additionally, these Parachains have many use cases, including Gaming, verifying identity, DeFi, Digital wallets, Price feeds, and credentials, among other uses.
The blockchain’s parachains have the ability to share information and connect to other blockchains such as Ethereum. In addition, the parachains will be able to unveil fresh services, for example, Decentralized Finance and Non-Fungible tokens (NFTs).
Giving a statement recently, Gavin Wood and co-founder Robert Habermeier said that this would be the first parachain Polkadot would support technically. They added that the platform’s council might develop the network’s first parachains/auctions at the start of next month (Nov 11).
In a recent tweet, Gavin Wood penned, “Whereas other chains take months or even years to deploy an upgrade, @Polkadot and @KusamaNetwork created, voted and deployed new logic onto the chain within 8 hours. All going through a secure, stakeholder-governed decentralized process.”
For users to be able to operate a parachain-based project, they need to run a parachain on the Polkadot Blockchain Network. You can start by leading a slot on the center chain (Relay Chain) done through auctions.
What is Polkadot?
Founded in 2016, Polkadot is a protocol that enables a diversified transfer of messages by various blockchains. Users share one-of-a-kind features in a trust-free method.
The protocol is heterogeneous because it is very flexible and does not assume the nature of chain structure in the network. Additionally, Polkadot has a price of 40.42 USD and a daily trading volume of more than five billion U.S Dollars.
Notably, the prices went up by about 9.7% in less than twenty-four hours, and its circulating supply is a billion DOT. To purchase or vend these tokens, you can use the Binance exchange.
The main challenge facing blockchains is Scalability. Scalability is basically the threshold of networks to handle huge transaction amounts of data within a Short given period.
Summary
In summary, it has been close to six years since the launch of the Polkadot paper, also known as the Polkadot whitepaper. Just recently, their parachains vision has shown signs of coming to the limelight.
Parachains are layer-one chains connected to layer-0 relay chains of Polkadot. These two run parallel to the relay chain that sits at the center.
These parachains also have many uses and advantages. Finally, the Polkadot team will launch the parachain auctions on Nov 11.
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