The Polkadot network is on the verge of making some major updates. Yesterday, Parachain auctions and crowdloans were added to Kusama and Westend.
Polkadot’s Role in the Blockchain Ecosystem
While other blockchains like Ethereum and Solana are marching ahead, Polkadot has promised to provide serious improvements to existing solutions’ scalability and connectivity.
Notably, Polkadot offers cross-blockchain transfers, scalable node structures, and the ability to upgrade the network without carrying out a hard fork. While the network remains somewhat nebulous, it is slowly but surely coming to fruition – the question is whether or not it can catch up with other blockchains in terms of adoption and stored value.
Big Changes: Polkadot’s Use Cases Evolve
Now that auctions and crowdloans are live on Kusama (Polkadot’s canary or ‘alpha tester’ chain), a lot of these promises can truly be put to the test.
Parachains (sold in slots) are an important facet of Polkadot, and can be used for various purposes such as privacy chains, smart contract chains, or high frequency trades. Interestingly, parachain slot auctions on Kusama follow a ‘modified candle auction‘ format: the precise endpoint of the auction remains hidden from bidders to prevent auction sniping. This allows for more accurate price discovery.
As parachain slots become available to developers, they can finally flesh out their ideas on Kusama – it’s a make or break point that will drive home whether Polkadot is truly able to bring something fresh to the crowded table that is the blockchain ecosystem.
It certainly looks promising: highly customizable chains that are also scalable and interoperable with other blockchains, with a trusted value token too, haven’t been around before.