Polkadot Sets Date for Parachain Auctions

·2 min read
AF-studio / Getty Images
AF-studio / Getty Images

Beginning Nov. 11 Polkadot will make its parachain slots available to developers through auction. The auctions will take place across seven days, with a random ending time on the seventh day.

See: What Is Polkadot and Is It a Good Investment?
Find: 10 Cheap Cryptocurrencies To Buy

What Is Parachain?

Parachains are the custom blockchains integrated within the Polkadot and Kusama networks. What makes them different is that virtually any developer can create their own chain on the network, diversifying some of the power away from large conglomerates.

Parachains are interoperable between blockchains, connecting several blockchains into one unified system for interoperability. They are highly scalable, secure, and may, ultimately, enable users to perform more transactions faster and at lower costs, according to crypto trading platform Kraken.com.

Kusama and Polkadot Auctions

Originally, developers created the “canary chain,” Kusama as a testbed for the parachain blockchain. Kusama only runs 100 parachains, so when one comes available, developers scramble to purchase it. To date, more than 2.4 million KSM, worth $860 million, have been contributed to auctions, said InvestorPlace.com.

Is Dot a Good Buy?

Afraid you missed the boat on Ethereum or Bitcoin and looking for an alternative? The DOT token, which is the crypto of the Polkadot network, and has been referred to as the “Ethereum killer.”

The announcement of upcoming auctions has driven up the value of the DOT token, the coin associated with the Polkadot platform, by 18% today, InvestorPlace.com reported.

CoinMarketCap.com is putting Dot at just under $41 on Thursday, up from $35 yesterday, and analysts are expecting it to skyrocket. By December, the coin could double in value, says CoinPriceForecast. However, DigitalCoin thinks DOT will only see gains of about $20 by the end of the year. The Economy Forecast Agency predicts the coin could reach $58.14 by the end of 2021, rising to $91.68 by October 2022.

See: Investors Are Bullish About Ethereum, Finds New Crypto Survey
Find: US Leads World Bitcoin Mining, Following China Mining Crackdown

With a relatively low entry price and such optimistic forecasts, if you’ve been considering getting into crypto investing, Dot might be a good place to put some spare change.

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This article originally appeared on GOBankingRates.com: Polkadot Sets Date for Parachain Auctions

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