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Parachains were launched bringing Polkadot’s multi-chain capabilities to life.
Polkadot launched its first five blockchains, embarking on the journey of transforming blockchain into an interoperable ecosystem.
Polkadot has been running parachain slot auctions since November 11th. Projects hoping to win placed credits and placed bets on the tokens they received to participate in the parachain slots. The first five winners of the auction were Acala, Moonbeam, Parallel Finance, Astar and Clover, projects focused on decentralized financing, inter-chain interoperability and other use cases. Now each project has a lease on the parachain until October 20, 2023.
Acala, a project aimed at building a DeFi hub on Polkadot, is among the most anticipated parachains to be deployed on the network.
Project co-founder Bette Chain spoke about the launch:
“We couldn’t be more excited about the launch of the Acala parachain to bring the DeFi platform and our own decentralized stablecoin to the Polkadot ecosystem and beyond.”
Polkadot is a smart contract blockchain that will host up to 100 parachains. Founded by former Ethereum CTO Gavin Wood, it focuses on providing application-specific parachains and the ability to communicate with each other. The circuits are protected by the Polkadot main central circuit called the relay circuit. Parachains are auctioned to teams for 96 weeks.
Despite the rapid growth in the number of public blockchains, the interaction between the chains has not yet taken shape. Sending tokens and data along the chains presents challenges because every blockchain ecosystem is fragmented. While many interoperable bridges have emerged, they are generally considered risky due to their reliance on centralized processes such as token swaps.
To address the interoperability issue, Polkadot provides protocol layer interchains and natively provides layer 1 parachains through a process called shared security. Discussing how the parachain model solves the problem and creates new value for the Web3 space, Wood said:
“The parachain model was created with the belief that the future of Web3 will include many different types of blockchains working together. Just as the current version of the Internet meets various needs, blockchains should be able to provide various services. Parachains solve this problem. ”
There are currently five parachains on Polkadot, with additional slots to be distributed in batches in the coming months. The next batch of Polkadotchain auctions is scheduled for December 23, and the auction winners will be awarded on March 11, 2022.
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