Community Trust ScoreVerified
- Polkadot (DOT) parachain slots
- Parachain slots and the total amount of tokens locked
- On-chain and off-chain transactions
- Total of 100 parachain slots
Polkadot (DOT) expressed: Parachain auctions are a central feature of kusamanetwork and Polkadot. Their outcome determines who gets which parachain slots and the amount of tokens locked.
Users need to understand why are para-chain auctions better run “on-chain” than “off-chain” and why a “candle auction” is used.
On-Chain: On-chain transactions are transactions that happen on the blockchain, which gets reflected on the distributed, public ledger. On-chain transactions are those which have been validated or authenticated, and it leads to an update to the overall blockchain network.
Off-Chain: Off-chain transactions refer to those transactions which happen on a cryptocurrency network that moves the value outside of the blockchain. Due to their zero/low cost, off-chain transactions are gaining popularity, especially among large participants.
Off-chain transactions work in contrast to on-chain transactions.
A parachain slot is a scarce resource on Polkadot, and only a limited number of them will be available. Therefore, every Parachain which is built within Polkadot makes use of the Substrate modular framework. The framework supports the developers in building applications within parachains to fit them to their particular needs. Thus, the Polkadot network makes cross-chain communication possible, enabling interoperability by connecting multiple blockchains into one unified network.
For a new parachain to be added to Polkadot, it should be a part of the available parachain slots. It is important to note that with increased numbers of parachains ramping up, there will be only a few “parachain slots,” which will be unlocked every few months. This ensures scarcity. This is done by way of Candle Auctions.
Online candle auctions make use of random numbers to decide the moment of termination of the auction process. However, Parachain slot auctions will not use termination of the auction process; instead, they will follow the “open phase,” and the auction will be retroactively determined. The normal close will be done, considering that the auction has ended at some point in the past.
So, in an open phase online candle auction, the bids will continue to be accepted; however, the close moment will be retroactively determined. Thus, the close moment can precede the bid moment.
Ultimately, there will be 100 parachain slots. These slots will be divided between the parachains and the para thread pools. Thus, acquiring a parachain slot becomes important to ensure guaranteed block inclusion at every Relay block for a particular parachain.
In an open phase online candle auction, the bids will continue to be accepted; however, the close moment can be retroactively determined. Thus, the close moment can precede the bid moment.
