Editor's Note: This article comes fromHoneycomb Finance News (ID: fengchao-caijing), Author: Kyle, reproduced by Odaily with authorization.
Editor's Note: This article comes from
Honeycomb Finance News (ID: fengchao-caijing)
Honeycomb Finance News (ID: fengchao-caijing)
, Author: Kyle, reproduced by Odaily with authorization.
Due to the need to pledge KSM and DOT tokens to participate in the auction, the secondary market was the first to change, and both currencies have recently entered a period of rising.
As a representative of "Blockchain 3.0", Polkadot is regarded as a value project comparable to Ethereum. Before the full mainnet is officially launched, more than 300 ecological projects have been developed based on Polkadot’s underlying technology framework, Substrate, and we look forward to taking the lead and connecting to the Polkadot mainnet as soon as possible.
At the same time, exchanges, investment institutions, and many secondary market investors all regard Polkadot as the key layout direction in 2021. Various Polkadot ecological funds have been established one after another, and industry participants hope to collect the next asset with a hundred-fold or even a thousand-fold return in the Polkadot ecosystem.
In December 2020, Polkadot founder Gavin Wood chanted the slogan "Make Blockchain Great Again". The parallel link into the Polkadot relay chain will become a substantial start, marking the beginning of the construction of the Polkadot cross-chain empire.
secondary title
The slot auction is coming soon, KSM and DOT will rise together
Polkadot depicts a future of multi-chain interconnection, but currently no application has been officially deployed on the Polkadot network, because the parachain carrying the application has not yet been linked to the relay chain of the Polkadot network. But soon, Polkadot will start the parachain slot auction, and its blockchain network blueprint has taken a substantial step towards landing.
Recently, a developer revealed that the Polkadot parachain test network Rococo V1 will open parachain slot registration on January 11. On December 23, 2020, Polkadot co-founder Robert once issued a document confirming that the parachain test network RococoV1 has been launched and running. The test network is designed to test the parachain consensus process and verify the interoperability of the parachain established by Polkadot community members.
On December 8 last year, Polkadot founder Gavin Wood stated that after the Rococo V1 testnet runs stably, he will be the first to open the parachain slot auction on the Polkadot mainnet testnet Kusama, and launch the auction winning parachain on Kusama . Afterwards, this process will be copied to the Polkadot mainnet. From the process point of view, the parachain slot auction is coming soon.
Due to the limitations of performance and network computing resources, Gavin Wood estimates that the upper limit of the number of parallel chains is about 100. Only one slot will be released per auction. By the end of 2020, more than 100 chains are ready to be connected to Polkadot. From this point of view, the demand for card slots may be greater than the supply. Whether it's Kusama or the Polkadot network, the first slot auction will be eye-catching.
However, getting slots is not done once and for all. The lease period of each slot is 6 months, and the project party can bid for 1 to 4 lease periods at a time, that is, the right to use the slots for 6 to 24 months.
In order to reduce the "financial" pressure brought by the auction to the project party, Polkadot has designed a bidding system that allows users to help the project party pledge tokens for bidding. Usually, the project party will take out its own tokens to motivate users who come to help. The tokens pledged by users will be locked for 6 to 24 months and there will be no Staking income. In this case, users need to bear the risk of the token price going down.
Gavin Wood named this auction model PLO (parallel chain lease issuance). He explained that this is equivalent to crowd-loaning, which is similar to crowdfunding, but it does not need to pay hard money to exchange coins. It is more like It is a loan, and you can get tokens back after unlocking.As the slot auction period approaches, the secondary market is moving. From December 25, 2020 to January 4 this year, KSM rose from $50 to $70.8, an increase of 41.6%. DOT rose from $5.06 to a maximum of $10.5, a surge of 107% in 10 days. The market value of DOT has risen to the sixth place in the list of encrypted assets, after BTC, ETH, USDT, XRP and LTC. This chain and its assets are becoming more and more mainstream.secondary title
327 ecological projects gain momentum
"EOS and Ethereum, who is Polkadot's front car"
Introduce its network characteristics and its similarities and differences with EOS and Ethereum networks.
As a latecomer, although Polkadot is a latecomer, it has obvious advantages. This is mainly reflected in the fact that its technical positioning is more low-level, and it focuses on "issuing chains" rather than "issuing coins". Get involved early in anticipation of rewards. Therefore, when the Polkadot mainnet is still in progress, its ecology is already quite large.
According to PolkaProject data, as of January 5, 327 projects have been born in the Polkadot ecosystem, including network infrastructure such as Acala and ChainX, development tools such as Noise Explorer, wallets such as Polkawalet and Ledger, validators such as Validators, Polkascan, etc. Blockchain browser, and DEX such as Polkaswap. In addition, many developer forums and working groups have been derived from the Polkadot ecosystem, forming a huge gathering place for developers.
image description
PolkaProject has collected 327 projects of Polkadot ecology
At present, the Polkadot network can only perform basic functions such as staking, block generation, and transfer, and has not yet been applied online. Therefore, most of these projects are developed based on Polkadot’s Substrate technical framework. Substrate is also the underlying framework of Polkadot. Any project party or individual developer can use Substrate to build a blockchain. In the future, it will be able to seamlessly interact with the Polkadot mainnet. The chain built on Substrate is also known as Polkadot's "isomorphic blockchain".
According to the statistics of PolkaWorld, in 2020, Polkadot added 68,778 lines of code, and Substrate added 130,226 lines of code. By the end of 2020, more than 100 chains are ready to be connected to Polkadot, and more than 60 testnets have been launched.
The growth of Polkadot's ecology is inseparable from Polkadot's official financial support. Throughout 2020, a total of more than 14 million US dollars has been used to fund more than 200 Polkadot ecological projects. Since the launch of the governance plan, 23 proposals have been funded by Polkadot’s “Treasury”, and a total of 118,456.63 DOTs have been spent, which is about $1.1 million. Additionally, the Web3 Foundation, founded by Gavin Wood, has distributed $4.1 million for 145 proposals.
Before the auction of parachain slots, many projects that have been preparing for a long time have expressed their willingness to participate in the auction, including Acala, Chainx, Bifrost, MXC, Plasm, etc.
Acala is targeting Polkadot's DeFi field, and its business includes stablecoin issuance, DEX, etc. It hopes to become the first parachain on Polkadot and Kusama; Chainx focuses on the cross-chain business of digital assets; Bifrost focuses on A DeFi protocol for the liquidity release business of pledged assets; it is reported that Bifrost has reserved 13.5% of the total tokens for slot auctions, which are used to bid for the right to use the parachain for 4 years.
However, not all projects need to bid for slots. Firstly, the cost is too high, and secondly, the number of slots themselves is limited. For some DApp developers, it is entirely possible to choose to develop on a parachain connected to the Polkadot network. In addition, Polkadot has also introduced a more economical access channel-parallel threads.
Gavin Wood said that certain applications do not need to process transactions in every block, and are more suitable for parallel threads that are paid on demand. The oracle machine (Oracle) is an example. If some data does not need to be continuously uploaded to the chain, and does not need to be uploaded at a very precise time, such as weather data, parallel threads can be used.
The slot auction is coming soon. Polkadot, which has been planning for many years, is ready to open the door to its ecological infrastructure and applications. When more than 300 projects are connected to the main network one after another, Polkadot's blockchain empire will rise from the ground.
secondary title
The market bets on the Polkadot ecology
Gavin Wood has publicly stated that if Polkadot is compared to a house, 2018 is the year of laying the foundation, 2019 is the year of building the framework, and 2020 is the year of "decoration" and "occupancy". "If we deploy Polkadot and demonstrate its core technology in 2020, 2021 will see the technology integrated into the mainnet."
image description
Polkadot founder Gavin Wood
In the minds of many people in the industry, Polkadot is the most unmissable hotspot in 2021. Like the early Ethereum, it is currently regarded as a value depression.
Therefore, exchanges, investment institutions, and many investors in the secondary market regard Polkadot as an important investment target and invest in it one after another.
On December 4, 2020, Huobi Innovation Lab announced the establishment of the "Polkadot Ecological Support Fund", which allocated US$5 million to support projects and individuals that promote the development of the Polkadot network; on the 24th of the same month, Binance announced the establishment of a US$10 million Fund, which empowers innovative projects in the Polkadot ecosystem and provides more resources; then OKEx established the Block Dream Fund with an initial capital of 100 million US dollars, focusing on investing in Polkadot ecology, DeFi and other fields.
Sally, Investment Director of Shuimu Financial Technology, revealed that in the next one to two years, Web 3.0 will be its focus area, including Polkadot.
There are also many individual investors who expressed their optimism towards Polkadot on social media, declaring that they will focus on the layout and ambush of related currencies, including both DOT and Token issued by various Polkadot ecological projects.
Some people in the industry believe that when choosing a Polkadot ecological project for investment, several factors should be considered, including whether you have received funding from the Web3 Foundation and whether you are a member of the Substrate Builders Program community. Generally speaking, the projects listed on Polkadot's official website usually have higher priority and competitiveness in participating in parachain auctions. In addition, projects involving investment by large firms and well-known institutions, as well as projects with larger communities are more worthy of investment.
