What is Polkadot?Polkadot (DOT) has a circulating supply of 990 million coins and a max supply of 1.07 billion. The platform allows diverse blockchains to transfer messages, including value and entails pooled security and trust-free interchain transactability.
Polkadot is heterogenous since it is completely flexible. Thanks to its sharded blockchain protocol, blockchains that are designed for specific purposes, can work together efficiently and securely at scale. With Polkadot’s blockchain technology, software developers, start-ups and enterprises can make use of scalable and customizable blockchain. At the same time, unlock cross-chain communication, transparent governance and seamlessly upgrade blockchains.
Upcoming parachain slot auctionsSo Polkadot uses two types of chains that allows for an efficient network – relay chain and parachains.
The relay chain connects various blockchains in a safe and secure manner. As the saying goes, two heads are better than one. With these “two heads”, the network can process transactions from multiple chains simultaneously and increase scalability.
Now, the relay chain consists of parachains that perform a cross-messaging function. Parachains are the foot soldiers of the Polkadot network and transmit data such as account balance, tokens and other info to and from the real world. This is very useful in the DeFi space, stock prices and scores from sporting events.
The Polkadot parachain auctions is a very significant milestone as it will allow decentralized applications (dApps) to launch in the Polkadot network.
The rollout of these parachains, or shards will commence on Polkadot’s Kusama network before going on to the main network. Currently, only the relay chains are operational on Polkadot main net.
The aim of the parachain slot auctions is to allocate slots to projects wanting to operate on either the Polkadot or Kusama network. It is said that the goal is to have 30 parachains operational within a year. These slots will actually be leased to successful bidders for a specific period. After which time, the slot will be put up for auction again.