Polkadot is ready to launch its parachains project and as a result, DOT surged by 25% as we are reading more about it in our latest altcoin news.
Earlier this fall, Cardano and Solana were the center of attention as both platforms battled for the spot on the leaderboard. Polkadot’s DOT surged again and is now elbowing for the front as its price increased 25% in the past day and 36% in the past week to reach $42. this is the highest point that this asset has been as it reached an ATH of $49.35 according to CoinGecko. It’s likely not a coincidence that after five years of development from Parity Technologies, Polkadot is ready to launch parachains with the leadership team voting to start auctions for Parachain slots starting November 11.
5 years after the vision of a heterogeneous multichain framework was first outlined in the Polkadot Whitepaper, parachains are now ready to launch on Polkadot. Motion 118, to schedule the first auctions, has passed council & now gone to public referendum.https://t.co/8pt3aT4vO3
— Polkadot (@Polkadot) October 13, 2021
Parachains are their own blockchains that run alongside the main network and use it for higher security but also to validate transactions. Polkadot is all about blockchain interoperability with a goal in mind towards increasing the number of transactions a network is able to process. DOT is a governance token that gives its holders voting rights so the users can stake DOT to the network and make it more secure. The holders need DOT to create new parachains and this also incremented demand for DOT from those that want to launch on the network. Peter Mauric who is the head of public affairs for Parity Technologies said:
“Today’s council motion to begin the rollout of parachains on Polkadot is a huge step forward for the industry. As the only layer-zero protocol in blockchain, Polkadot is designed to disrupt the entire layer-one landscape in the coming years by dramatically reducing the overhead required to secure and connect layer ones in the form of parachains.
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The layers refer to the levels built on top of the blockchain so the Layer 2 technologies like Lightning for BTC or Polygon for Ethereum, help to process transactions faster by taking some of the burdens of the first layer. Layer 0 on the other hand increases the efficiency by bundling a few blockchains together. Polkadot was created by Ethereum co-founder Gavin Wood and Robert Habermeier who plays key development roles at Parity. The company was still splitting time between DOT and ETH but it ran the second biggest ETH client for years and chose to hand over the codebase to a DAO and turn to Polkadot full time.
Polkadot made parachains available on its Kusama network which is a testnet for the Polkadot features that have its own token KSM and a $3 billion market cap. In a few days, the DOT price crashed by one-third and the holers are hoping that today’s price boost will hold.
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