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Polkadot hits all-time high on AltCoinTrader with launch of parachain slot auctions

Polkadot hits all-time high on AltCoinTrader with launch of parachain slot auctions
Polkadot’s coin, DOT hit an all-time high of R872,24 on AltCoinTrader last week. DOT is amongst the top altcoins that is said to explode during this bullrun and with good reason.

Polkadot launches parachain slot auctions

Polkadot fans have been anticipating the launch of parachain slot auctions on the network for months. Finally, on Thursday, 4 November parachain slot auctions were launched!

This is a huge milestone for Polkadot as projects will now be able to launch crowdfunding efforts using DOT. For the last couple of months, parachain slot auctions have been running on Polkadot’s canary network (test network) Kusama. Since Thursday, the auctions have officially been moved to Polkadot and $1 billion DOT tokens have been allocated for ecosystem development.

The Polkadot-enabled crowdfunding will go live on 11 November 2021. It is said that about 10 projects will go live on that day. Among these projects are Moonbeam, Centrifuge and Acala Network. Moonbeam is an Ethereum-compatible smart contract parachain whilst Centrifuge enables individuals to finance real-world assets on the Polkadot Network. Acala Network is mainly focused on being an Ethereum- compatible smart contract platform that is ideal for decentralized finance (DeFi).

What are parachains?

The Polkadot network was created by Gavin Wood, Ethereum co-founder, in 2016. The blockchain consists of a single base platform namely a Relay Chain. The Relay Chain is a combination of 100 parachains that are interconnected through the Relay Chain. The Relay Chain gives security to the network of parachains.

Parachains work on a similar basis as Ethereum’s sharding mechanism, which is expected to be launched with ETH2.0 in 2022. This means that like sharding, users on the Polkadot network will benefit from chains that reduce network congestion and increase transaction speed. Furthermore, parachains bring scalability to the network and at the same time, benefit from the security model.

Should you buy DOT Tokens on AltCoinTrader?

DOT Tokens can be used for a number of things. It is mainly a governance and fee payment token but also enables parachain interoperability and locking of tokens for new parachains. This allows DOT holders to bond their tokens to the network to show their support for a specific project.

Parachains differ from initial coin offerings (ICOs) in the sense that investors do not have to transfers ownership of tokens to bidders during parachain auctions. With parachains, participants get their bonded tokens once access to the parachain slot expires. Should a specific project lose, the bonded tokens are refunded. This makes it safe and secure to participate in.

DOT is currently the 8 th largest cryptocurrency with a market cap of $55.6 billion. Fueled by the excitement of the parachain auctions, the price of DOT reached R872,24 on AltCoinTrader. At the time of writing, it is trading at R786,15 as it entered a phase of price discovery. According to various crypto analysts and traders, DOT is expected to make a run-up to the $100 psychological level soon. If you have not bought a bag of DOT on AltCoinTrader yet, today is the day.