Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
Polkadot’s DOT token touched a new all-time high above $41 last Saturday over the excitement of the community members on the upcoming developments for parachain rollouts.
Over the last week, Polkadot (DOT) price has surged a massive 50% to become the fourth-largest cryptocurrency by market cap. Polkadot’s DOT crypto has climbed the ranks as its price topped a new all-time high of $41.30 last Saturday, February 20.
With this, Polkadot’s year-to-date gains have skyrocketed to more than 350%. At press time, DOT is trading at a price of $37.52 with its market cap of $34.2 billion. The reason behind this latest price rally in Polkadot is the growing excitement among its users for the upcoming Parachain auctions. The parachains are nothing but application-specific data structures.
With new Parachain auctions, users are expecting increased interoperability of Parachain with other blockchain networks. Thus, the Parachain auctions will allow Polkadoit users to connect with other blockchains like Bitcoin (BTC) and Ethereum (ETH). Last week, Polkadot released its roadmap highlighting the upcoming developments. The roadmap consists of three major phases of application for the network to go live.
Polkadot (DOT) Roadmap for Parachain Auctions that Boosted Token Price
Rocco Testnet Rollout: The phase plans to implement a mechanism called “cross-chain message passing-lite,” which allows fast transfer of data between different blockchains. Upon the evaluation and approval of the code, Polkadot will submit a vote via on-chain governance. Thus, it will help to power the parachains and slot auctions on the next phase i.e. Kusama
Kusama Testnet Rollout: Kusama will serve as a multi-chain network and provide an additional proving ground for parachains. This sandbox design helps to support further testing and network effects before any launch on Polkadot. A vote by Kusama governance with further help to enable the parachain functionality. Kusama’s looser parameters will help developers test new ideas. Besides, it will also help gain additional visibility among community members.
Polkadot Slot Bidding: Polkadot’s parachain offering has an important function called slot bidding. Instead of going for the traditional ICO model, the Polkadot parachain offering incorporated candle auctions. But again, unlike the normal candle auctions, Polkadot’s candle auctions will be determined retroactively. Thus, the bids placed earliest have the highest probability of success. Upon the completion of the auction, Polkadot will deploy the winning parachain at the start of the lease period. Auction winners can lease their parachain slots in six-month increments for a maximum of two years.
Thus, Polkadot is looking for some major updates ahead of time which will bring some strong scalable capabilities for its users along with its ability to communicate data and info with other blockchain networks.