Polkadot is preparing to launch its Parachains project and as a result the DOT is up 25% as we read more about it in our latest altcoin news.
At the beginning of autumn, Cardano and Solana took center stage as both platforms battled for a spot on the leaderboards. Polkadot’s DOT has bounced back and is now bullish as its price rose 25% last day and 36% last week to $ 42. This is the highest point the asset has hit as it hit an ATH of $ 49.35, according to CoinGecko. It is probably no coincidence that after 5 years of developing Parity Technologies, Polkadot is ready to launch Parachains, with the executive team starting auctioning Parachain positions from November.
Five years after the vision of a heterogeneous multifactorial framework was first outlined in the Polkadot whitepaper, Parachains are now ready to take off on Polkadot. Motion 118 to plan the first auctions was accepted by the Council and has now been submitted to a referendum. https://t.co/8pt3aT4vO3
– Polkadot (@Polkadot) October 13, 2021
Parachains are separate blockchains that run along the main network and use it for more security, but also to validate transactions. Polkadot is all about blockchain interoperability with the aim of increasing the number of transactions a network can process. DOT is a governance token that gives owners voting rights so users can add DOT to the network and make it more secure. Owners need DOT to create new parachains and this also increases the demand for DOT from people looking to get started on the network. Peter Mauric, Head of Public Affairs at Parity Technologies, said:
“Today’s proposal from the Council to begin deploying Parachains on Polkadot is a big step forward for the industry. As the only layerless protocol in the blockchain, Polkadot aims to break through the entire layer-one landscape in the coming years by drastically reducing the costs of securing and connecting layers as parachains. “
Layers refer to layers built on top of the blockchain, so Layer 2 technologies like Lightning for BTC or Polygon for Ethereum speed up transaction processing by removing some of the load of the first layer. Layer 0, on the other hand, increases efficiency by combining several blockchains. Polkadot was created by Ethereum co-founders Gavin Wood and Robert Habermeier who are senior developers at Parity. The company still splits its time between DOT and ETH, but they’ve been running the second largest ETH application in years and have decided to hand over the code base to the DAO and move to Polkadot full-time.
Polkadot has offered Parachains on its Kusama network, a test network for Polkadot functions with its own KSM token and a market capitalization of $ 3 billion. In a few days the price of DOT will have fallen by a third and sellers are hoping today’s rally will last.
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