Parachain auctions with Polkadot and Kusama

Crypto News
May 17, 2021
2 min read

Updated: Mar 28, 2024

Parachain Auctions With Polkadot and Kusama

The Polkadot wants to take it to the next level and is extensively expanding Kusama and the network Westend.

While Ethereum is climbing one all-time high after another, Polkadot has barely risen in price in recent weeks. But that could change soon. Polkadot wants to enable cross-blockchain, a scalable system and the flexible updating of blockchain. However, there are currently no decentralized apps that can be used in the Polkadot. This is mainly due to the fact that auctions have not yet been possible - but that has now changed.

A post published this week indicated that the code for parachain and crowdloans is now available. Initially, you can only use this on Kusama.

Polkadot Wants To Take It To The Next Level

Parachain and crowdloans give projects the opportunity to prove their ambitious goals in practice. Parachains are needed to create privacy chains or smart apps in the Polkadot. Projects that initially develop on Kusama before expanding now have the opportunity to secure such a parachain slot. To do this, they have to take part in the auctions and win them.

The developers now have the opportunity to work out their ideas on Kusama. The next few weeks could show whether the Polkadot is really able to keep its promises and revolutionize crypto space.

If you want to set up a parachain on them as a project, you have to take part in a so-called auction. There are currently no Parachain auctions, but the first auctions should take place on Kusama in the next few weeks. In the future, auctions are to be held on Polkadot and Kusama every two weeks.In the auctions, various teams offer space for a parachain. In addition, it is not possible to participate in the auctions with other cryptocurrencies. It is therefore likely that the start of the auctions will significantly increase the demand for DOT and KSM.

The contents of this article are for informational purposes only and are not investment advice.