Polkadot launched its first parachain which is a high-speed blockchain that garnered a lot of attention as we can see more in today’s altcoin news.
Blockchain ecosystem and crypto protocol Polkadot launched its first-ever parachain yesterday which is a move that pushed the prices of the DOT token above $14. The open-source project founded by the Web3 Foundation, Polkadot is built and maintained by five teams commissioned by the foundation while the DOT token serves three main functions: staking, governance, and bonding to parachains which helps power use cases for the blockchain project.
Rococo V1 parachain registration has begun! For chain builders looking to participate check out the Rococo V1 Parachain Requirements guide here: https://t.co/sk7iZ0DaEw
— Polkadot (@Polkadot) January 12, 2021
Parachains are similar to ETH’s shards as they spread transactions across multiple nodes and allow for a much faster and more-scalable network. the slots for such parachains are limited and now Polkadot intends to auction them off in a candle auction. In the mid-term, about 100 parachain slots will be available for teams and developers which creates a huge gap between the market demand and the supply, and yesterday was one of these launches.
Plasm Network connected to Polkadot’s Rococo back in August and was launched yesterday. The project is a layer-2 technology that runs over Polkadot and solves critical scalability issues as well as running smart contracts for dapp developers. Plasm Network said in a tweet:
“Our highest priority in 2021 is to become a Polkadot parachain and build a dApps hub on Polkadot. Today we became the first parachain on Rococo V1.”
As stated back in August, the launch on Plasma will see both Plasma launch a PoC with the Acala Network and stablecoin protocol that will make the first Polkadot cross-chain use case. This will bring the first cross-chain which is an interoperable program for the broader Polkadot ecosystem. In the meantime, traders pushed the price of DOT to over $12.5 before the launch and the token remains in the uptrend, trading above its 34-period exponential moving average and has no resistance levels above it.
There are over 899,80 DOT tokens in circulation with one market cap of $11 billion which returned over 127% to investors in the past month and about 34% in the past day. Also as recently reported, Polkadot is a multichain blockchain platform that is focused on cross-chain interoperability and it is set to get a new look.
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