[ad_1]
since Mainnet launch 2020. Currently in the Rococo network testnet, the next phase of the launch will involve the deployment of parachains on Polkadot’s crazy cousin “Canary Network” Yayoi Kusama. The Polkadot parachain will then be promoted on the main network.
What does it mean? The Polkadot mainnet has been officially put into operation for nearly a year now. However, only the central relay chain has been up and running, and the focus of development in the last 12 months is to implement decentralized governance of the platform.
The chain deployment is the final stage of allowing decentralized applications to be launched on the Polkadot network.However, as the current release has exceeded its initially rumored release date for the first quarter of 2021, and nearly three months have passed since the release Development roadmap announced, There is still no exact date to determine when it will finally be deployed. So, what can we expect from this conference and which projects will participate in the auction?
How does sidechain auction work?
Parachains are actually fragments on the Kusama or Polkadot networks. The purpose of the auction is to allocate parachain slots for projects that wish to run on either network. The overall goal is to make 100 parallel chains run simultaneously. However, these will be opened in batches, with the goal of running about 30 parachains within the first year.
Projects wishing to obtain the Kusama Parachain slot can participate in the auction by binding their KSM tokens in the decentralized candle auction. These can be their own tokens, but the crowd loan mechanism can be used by projects to obtain tokens from their communities.
The candle auction is a variant of the public auction, and no fixed end time is given. This kind of auction appeared in the 16th century, when a candle was burned to determine the bidding time. The purpose of this is to encourage participants to make the highest bid as early as possible, because they do not know when the auction will end. Therefore, it can prevent “sniper”, that is, bidders enter in the last few minutes with the winning bid.
After the bidding is over, the random number generator will determine the end of each slot machine auction instead of candles. Therefore, if future bids are entered after the retrospective closing time, they will be disqualified.
It is worth noting that the winning bidder will not “buy” their slot machines, but just rent them, and during the auction, the total value of the bid is fixed. The lease term will be fixed (the term between Polkadot and Kusama may vary), and projects can be bid for up to four consecutive periods. Therefore, the total duration of the bid will also be weighted to its value.
At the end of the last lease period, the advertising space will be auctioned again.
Peter Mauric, director of public affairs at Parity Technologies, the company behind the development of the Polkadot ecosystem, said competition is likely to be fierce. In his speech to Cointelegraph, he said:
“In my opinion, especially in the early matches between Kusama and Pocardo, the competition is expected to be quite intense. Because there is usually a competitive auction at the beginning, I suspect that the project will be seriously disappointed, especially considering that There will be a new ad space to bid for every two weeks.”
Which projects will bid for Parachain Slots?
In theory, any project can participate in the parachain slot auction. However, they do need to have a code base, and they must hold or crowdsource enough KSM or DOT tokens to win the competition.
In addition, the Kusama Association has expressed its intention to reward two Kusama corners for infrastructure projects deemed to be of the “common interest” of the ecosystem. These are PolkaBTC, which provides a bridge to the Bitcoin blockchain, and Snowfork, which bridges to the Ethereum blockchain.Similarly, it was proposed to use Statemint (a universal asset issuance platform) as The first public welfare project of the Polkadot network.
Several projects have expressed interest in participating. Acala aims to become Polkadot’s one-stop decentralized financial service provider and will bid for its Kusama implementation called Kuura. Moonbeam, a smart contract platform compatible with Ethereum, will look for slots for its version of Kusama (called Moonriver). Kilt aims to provide decentralized credentials in the form of a universal login for Web 3.0 applications, and it will also seek to ensure the security of sidechain slots. These three projects are very active on the Rococo Testnet, and the community actively participates.
Cointelegraph talked with Dan Reecer, Vice President of Growth at Acala, and discussed how to put the dual implementation of Kusama-Polkadot into practice. He explained that both Acala and Karura hope to become decentralized financial centers on their respective platforms, and the project plans to run them simultaneously forever. But, as he said, everyone has a role to play:
“The difference between Karura and Acala is that with Karura, we will be more willing to take risks and try new features and new products. We are following the Polkadot ecosystem paradigm of the testnet, from the trial network (Kusama) to the main network (Polkadot) Acala will still be a bank-level, risk-averse network of DeFi on Polkadot, and its TVL and assets in asset management may be much higher.”
Although no date has been set on the roadmap, it seems to be ready to put the project into production within a few weeks or even days after the location is determined. Derek Yoo, founder of Moonbeam Network, confirmed that Moonriver is almost ready to be deployed. He told Cointelegraph: “Since September 2020, Moonbase Alpha has been running. By then, we have been able to release six environment upgrades, each with important new features,” he added:
“We are able to iterate quickly because we have a stable testnet environment, and we think it is fully prepared for us to go online as a parachain.”
Kilt Protocol’s CEO Ingo Rübe told Cointelegraph: “After winning the Kusama Parachain slot, Kilt will go live in a few days instead of weeks. The functions of decentralized identifiers (DID) and verifiable credentials are ready and are already in place. Our testnet is stable.
If the demand for slots is indeed high, then many other projects may express interest in competing for slots on the grass, especially considering that many projects have been patiently waiting for the parachain auction without setting a date. occur. Plasm, Darwinia, Robonomics and Crust are just a few of the other possible projects.
What about the price?
Assuming that the competition for slot machines is fierce, then for KSM and DOT, this is a reasonable enough predictor to take some bullish price actions. On the surface, more competition means that bidders may be high from the start. Since the tokens are bonded during the lease period, it will remove part of the circulating supply of DOT and KSM from the market, thus limiting the supply.
However, the Kusama Parachain auction is the first such event, so it may not proceed as planned. Although the entry barriers to obtain slot machines are quite high, there are still opportunities for external participants to try to outsold their competitors by selling them purely on the secondary market at higher prices.
In fact, this is a situation recognized in the Polkadot documentation. Such actors may also try to “squat” on the side chain slot, just to prevent other projects from using it.
This situation does not look good for the Polkadot ecosystem, and it will be difficult for projects wishing to obtain parachain slots. Regarding the price of tokens, it is difficult to say. On the one hand, the bidding war may have a positive impact on prices, but on the other hand, reputation damage may offset any bullish effects.
How leasing rules and the ongoing auction process affect the overall stability of the Polkadot ecosystem is another unknown. Projects that are already running may lose their offline positions. Similarly, bidding wars in auctions may bring good news for token prices, but they may prevent smaller projects from participating.
However, Mauric of Parity believes that this will not be a problem. He explained to Cointelegraph that the early parachains are most likely to eventually fall into the hands of “a perfect project that has established its matrix-based chain for many years”, and further elaborated:
“For a project that won’t win a place on Polkadot initially, there are several options, including deploying parallel chains on Kusama or exploring deployments as parallel threads in the future. Many application layer projects will be deployed on parachains when they start. This provides more opportunities for teams and projects to collaborate and build on the parachain of activities. If this is the goal of their community, they are waiting for their place.”
Precautions
Ultimately, the launch of the highly anticipated parachain does not just mean good news for the projects involved or those holding KSM and DOT tokens. For example, although BTC, especially altcoins, have experienced a boom in recent months, the price of DOT has been trading sideways since it initially surged above $40 in mid-February. Further delays in issuance may put more pressure on the price of tokens.
Finally, when considering participating in the crowdfunding process, beware of scammers.There is one on Yayoi Kusama’s auction page caveat There may be false crowd loan activities in progress. Therefore, if you plan to pledge your DOT or KSM in Shunchain crowdfunding, please make sure that you have conducted due diligence on related projects.
None of this is to say that all of these possible worst-case scenarios will be achieved and will have a negative impact on the milestones of the trip to Polkado. The project has an off-the-shelf project suite that can be carried out immediately, and from this perspective, this release may be much larger than many other mainnet releases that have to be worked on subsequently to attract development.
[ad_2]
Source link
