Finally Polkadot is ready for the important parachain auctions phase
I was amazed last week when I heard about the mega news that Polkadot is ready for Parachain auctions, this means that Polkadot will have its first parachain launched in its network by December. Parachains are like Blockchains in Polkadot that will run parallely to the main Relay Chain of Polkadot. Dapp project teams need to win a Parachain slot in the Parachain auctions to be able to launch as a parachain in Polkadot.
Polkadot has announced that Polkadot’s parachain auctions will begin on November 13!!
Excited Dot Holders who are looking forward to participate in Parachain crowd loans
This news is exciting for people like me who have been waiting for Polkadot’s Parachain auctions which would decide the parachains that will launch in Polkadot.
This is because I am backing the Acala team in the parachain auction competition. Teams that bid the highest amount of DOT in the parachain auctions will win a parachain slot in the Polkadot Network.
I will be able to support my favorite Dapp team by contributing DOT for the parachain auctions through crowd loans. Here my DOT would be locked in a virtual vault smart contract in the Polkadot Blockchain only to be used by my favorite Daap team for bidding purposes in the parachain auctions.
I explained about this in my earlier article about Acala preparing for competing in the parachain auctions by having opened the Acala Crowloan waitlist. You can read about it here - : @mintymile/acala-has-already-begun-preparing .
The Acala Crowdloan waitlist closed last week.
Anyway I will definitely write more about my journey preparing to participate in crowd loans that Acala will launch, for action towards this has already begun last week, with me getting guided on how to prepare for them by participating in Acala Quest.
Acala Quest - a incentivised action guide to educate DOT holders on participating in Acala crowd loans
Polkadot’s huge price movement is to the upside!!
Anyway, another way to comprehend how big Polkadot’s parachain launch news is to take note of Dot’s price action.
Dot's 1 Day chart in trading view
Dot’s price reacted to this parachain launch news by rising up as can be noted by the big price movement that happened on October 13th.
Dot is looking to break the resistance point at 42$ and then find support at that level to target breaking its ATH(All Time High) price at 50$. All expectations are that DOT price will not only break its previous ATH but also explode further.
The reason for this is obvious, because more DOT will be brought to participate in the upcoming crowd loans and participating teams may also put more DOT on the network for the parachain auctions. Besides this, everybody is thrilled about Polkadot igniting to function because there will be functional Dapps on it very soon.
Polkadot technology is already tried and tested in Kusama and is performing well!!
Polkadot’s Canary sister network, Kusama, already has successfully proven that Polkadot’s technology, along with its parachain auctions and launches functions well. Kusama is Polkadot’s test network, with every feature implemented on Polkadot first tested and evaluated at Kusama.
Polkadot is not a Layer 1 Blockchain, its called as a Layer 0 Blockchain
What’s cool about this is, Polkadot Blockchain is talked about to be a Blockchain that will have fast transaction times and be interoperable. While every other Blockchain out in the crypto world is a layer 1 Blockchain, Polkadot team says that its Blockchain is a Layer 0 Blockchain.
This means that applications that will come up and build on Polkadot after winning a parachain slot will be Layer 1 Blockchains, because Polkadot simply combines all Blockchains, while it remains the main chain that secures these Blockchains.
Ethereum needs Layer 2 Blockchain to function with fast speeds and reasonable costs
We will get to know how this Layer 0 Blockchain functions soon. Ethereum is a Layer 1 Blockchain that requires Layer 2 protocols like Matic to function in a speedy and cost effective way and a criticism about that is that Ethereum’s ecosystem is fragmented and not easy to deal with, as different protocols need to be accessed, to avail the benefits of scalable transactions that are reasonable!!
DOT price should go up with DOTs getting locked for the parachain auctions
Dot'a price range is near to its previous ATHs
Another aspect to remember is that with the Polkadot parachain auctions coming up, investors who will contribute DOT through crowd loans to parachain slot winning Dapp teams will have their DOT locked up till the end of the parachain slot period, which is 2 years.
So, these DOTs won’t be sold anytime soon, and with more parachain auctions happening and more DOT locked up the price of DOT in the near future would go up.
I may have some of my DOT locked up, to be an early holder of ACA tokens of Acala, if Acala manages to win a parachain slot that is.
Anyway thanks for reading everybody!!