Kusama, a test network for Polkadot’s platform, is ready for the rollout of parachains on the network, with auctions for projects on it starting mid-June.
- Gavin Wood, the founder of Polkadot, proposed the parachain auctions to start from 15 June on Kusama.
- Parachains are now live on Kusama.
- According to Gavin Wood, this brings the project’s final vision of a scalable multichain platform closer to reality.
Polkadot is rolling out the most robust platform for security, scalability, and innovation. Having launched the genesis block of its Relay Chain(the chain at Polkadot's core) in May 2020, Polkadot is now on track to establish several parachains in 2021.
Kusama, Polkadot’s pre-production environment (aka “canary network”), is designed to serve as a live testbed for new features before they are fully deployed on Polkadot. It has seen the very first parachain go live soon after Polkadot creator and Ethereum co-founder Gavin Wood announced that the project is entering the final phase of its mainnet launch.
Wood said that despite Polkadot’s “highly decentralized and inclusive staking system,” the network “has so far existed only as a single chain in isolation.” “With the launch of parachain functionality, this is about to change,” he stated, adding that the final vision of the network is now “about to become a reality.”
⛓What exactly are Parachains?
Each chain enjoys access to critical features like a proof-of-stake consensus algorithm and on-chain governance. It’s a vital feature of the network and will distinguish it from hundreds of other blockchain competitors. And with the recent rollout on Kusama, this feature is one step closer to going live on Polkadot.
👨🏻⚖️How do the Auctions work?
Parachain loan offerings work in quite an ingenious way. The relay chain, which lies at the heart of Polkadot's network of blockchains, can support up to 100 parachains and connect the relay chain collators in parachains must stake DOT tokens.
Now there are hundreds of projects building on Polkadot, and each of them will need its own parachain slot. For this, i.e., to secure the parachain slot, there are auctions….
Thus the amount of DOT a project would need to put down to secure a parachain slot would be enormous. This would consequently turn the Polkadot ecosystem into a pay-to-play playground where the projects with the most funding get the slots, regardless of whether they bring benefit to the ecosystem or not. To solve this problem, the folks at Polkadot have decided that DOT holders will be able to loan their coins to the project-building on Polkadot that they believe should get a parachain slot.
The projects, in turn, incentivize dot holders to loan them the dot they need by promising to airdrop some of their tokens if they get the slot. The clever detail here is that none of the loan’s DOT is ever made accessible to the Polkadot project itself. It remains in the wallet loaning the DOT at all times. Thus you only stake your crypto without losing it to earn crypto of the project you provided a loan to.
The same process would be replicated on Kusama network with KSM replacing the DOT.
2021/06/15, 12:00 GMT: First Kusama Parachain Slot auction commences. Bids may be placed.
2021/06/22, 09:00 GMT: First Kusama Parachain Slot auction bidding ends. Biddings end.
Ethereum has become increasingly overloaded and expensive, thanks to the explosion of decentralized finance (DeFi) and non-fungible tokens (NFTs), credible alternatives such as Polkadot, Cosmos, Solana, NEAR, and others are starting to elbow their way into the base layer conversation.
Developed by the Web3 Foundation and Parity Technologies and launched in May 2020, Polkadot is a proof-of-stake protocol with the ultimate goal of creating an internet of interoperable blockchains.
Winning a parachain slot on Kusama or Polkadot once it’s fully deployed is an expensive business. Each auction will last a week, and in the case of Polkadot, this is said to require a minimum of 1 million of the network’s native DOT tokens (approximately $20 million at today’s prices).
As far as the prices are concerned. It is predicted that due to the high demand for the KSM and DOT for securing the parachain via auctions, the prices are going to skyrocket, and this has already kickstarted.
There has been a lot of developments in 2020 around Polkadot, which sought below :
Polkadot 2020 Roundup
Despite being a tough year for pretty much everyone (with the possible exception of Amazon and takeaways), the Polkadot…
Aditya Gite, Research Analyst at Moving