Since blockchains have grown in popularity in recent years, the lack of cooperation among chains has remained a fundamental impediment. Polkadot is happy to announce the introduction of the first parachains, or distinct blockchains running in parallel inside the Polkadot ecosystem, on its network today, following five years of technological development.
Polkadot makes the technological improvements needed to make blockchain technology practical, accessible, scalable, interoperable, and future-proof, reducing constraints and hurdles to entry and so fuelling innovation, increasing the decentralized technology ecosystem and realizing the Web3 goal. This achievement is a significant step forward for linked blockchain technology. Parachains will be able to converse with one another in the Polkadot environment.
Auctions are used to assign slots on Polkadot’s main blockchain, the Relay Chain. The inaugural auction’s winners include parachain startups specializing in areas ranging from decentralized banking to financing, as well as smart leasing.
Acala, Moonbeam, Parallel Finance, Astar, and Clover are their names. They will be able to rent a space on Polkadot’s Relay Chain for up to 96 weeks at a time. And as the ecosystem matures, particularly with the introduction of metaverses, hundreds more protocols will become more obvious. There will not be a single blockchain in that situation, but rather multiple interacting networks.
“We couldn’t be more excited to be launching Acala’s parachain to provide a DeFi platform and native, decentralised stablecoin (aUSD) to the Polkadot ecosystem and beyond after taking a bet on Polkadot and the Substrate framework when we started building over two years ago,” said Bette Chen, Co-founder of Acala.
Polkadot was created in May 2020 with the goal of campaigning for a “fragmented” multi-chain world to allow blockchain network compatibility.
Dr. Gavin Wood, inventor of Polkadot and co-founder of Ethereum, designed Relay Chain, a layer zero that enables 100 parachains, sovereign blockchains that function in parallel with a high level of security, to make this interoperability a reality.
Blockchain engineers understand that functioning across a dispersed network might be difficult, but technological tools are improving all the time. “There is no one blockchain design that is optimum for every use case. Each chain has trade-offs that make it suitable for some purposes but not others. The parachain paradigm was developed with the notion that the future of Web 3 will entail several distinct types of blockchains cooperating. Blockchains must be able to deliver a range of services, just as the present version of the internet does. This is solved by parachains “Dr. Gavin Wood said.
Polkadot will eventually have 100 parachain slots. More spots will be assigned in phases over the next few weeks. Some of these slots will be utilised for governance-enabled common-good parachains and parathreads, therefore not all of them will be assigned via parachain slot auctions. As more parachain teams link to Polkadot, the network’s goal of a more diversified, decentralised, and compatible web – Web3 – will become a truth.
The next round of Polkadot auctions will take place on or about December 23, 2021. The second phase will include six auctions, with the six winning parachains expected to be onboarded on or around March 11, 2022.