- Polkadot is interoperable with other blockchains, enabling them to transfer data.
- Polkadot started auctioning off parachain spots to blockchain developers.
Since its inception in 2015, Ethereum has enhanced the blockchain’s utility. It lets programmers create self-executing code (smart contracts) that could be stored on the blockchain. Decentralized applications (Dapps) and decentralized finance (DeFi) products arose due to this.
Polkadot was founded by Gavin Wood, a co-founder and former CTO of the Ethereum Foundation. Solidity, the programming language used to generate Ethereum smart contracts, was designed by him. Wood was a co-founder of the Web3 Foundation, which aims to create a decentralized version of the internet known as Web 3.0.
Polkadot is interoperable with other blockchains, enabling them to transfer data. Consequently, the future of blockchain technology is likely to consist of several customized chains, each with its own set of applications.
Parachain Auctions
As a result, the Polkadot blockchain is one-of-a-kind. The relay chain is a blockchain that saves energy by using proof-of-stake consensus. The relay chain coordinates and secures programmable side chains known as parachains. Polkadot also supports bridges, a kind of network that connects to other networks.
In November, Polkadot started auctioning off parachain spots to blockchain developers. Acala, a DeFi platform, and Moonbeam, an Ethereum bridge, won the first two auctions. Both parachains will connect to the relay chain on December 17, possibly speeding up the spread of Polkadot’s Dapp ecosystem.
Auctions will be placed at regular intervals until 100 parachains have been obtained. With one exception, a million transactions per second would make Polkadot much more scalable than any other blockchain network.
Investors can become a member of the Polkadot ecosystem by owning DOT. As a result, individuals can use DOT tokens to propose and vote on changes. Annual incentives are at 13.8 percent. If Web 3.0 is indeed built on it, owning a piece of Polkadot’s infrastructure is a compelling investment.
