Blockchain

Story: Polkadot (DOT) Auction for Parachain Slots Gaining Lot of Attention For a Reason

By James Thorp

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Lot of expectation brewing around Polkadot parachain.  The networking protocol is hailed to be a better option for developers as the development time for blockchain…

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For clarity, “The Polkadot network makes cross-chain communication possible thus enabling interoperability by connecting multiple blockchains into one unified network.

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The network makes it possible for arbitrary data and tokens to be transferred across blockchains.

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A recent concern is that the Polkadot parachains are full of promise, but their lack of a launch date leaves users wondering.

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While all these are happening there is lot of curiosity building around “Polkadot’s parachain auctions.”

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For clarity, “A parachain slot is a scarce resource on Polkadot and only a limited number will be available.”

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For a new parachain to be added to Polkadot it should be a part of the available parachain slots.

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The ultimate aim is to have 100 parachain slots and these slots will be divided between the parachains and the parathread pools.

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Acquiring a parachain slot is important to ensure guaranteed block inclusion at ever Relay block for a particular parachain.

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Parachain slots get sold by way of unpermissioned candle auction. Candle auctions are different from open auctions.  Candle auction is a variant of open auctions.

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Online candle auctions make use of random numbers to decide the moment of termination of the auction process.

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So, in an open phase online candle auction, the bids will continue to be accepted; however, the close moment will be retroactively determined.

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