After the long-awaited beginning to come out, Polkadot's slot auction finally started. Just getting started now is its test environment, Rococo. This is just a testing environment, not an auction for real money. But despite this, judging from the projects that won the auction, when the Kusama and Polkadot ecological slot auctions start, the probability of winning the slot auction at the beginning will be the same. The three winning projects in the Rococo test environment slot auction are Acala, Plasm, and Kilt. And these three projects are the three projects I am most optimistic about among all Polkadot projects. Obviously, the market's judgment on the value of projects in Polkadot is very consistent.
The Acala project won the first place in the auction without a doubt. In view of the current popularity of DeFi, the market's expectations for Acala's projects are also very high. Obtaining the first parachain in the Polkadot ecosystem will obviously receive high attention from the market. At the same time, because the current market is very optimistic about DeFi, the Acala project, which ranks first in the slot auction, has a very high probability of obtaining most of the resources in the market. These resources include using users, funds, and applications developed on its parachains. It can be said that the Acala project won the first place in the Polkadot slot auction. This is the result that Polkadot ecology, the market and the Acala project itself hope to see.
As a smart contract platform in the Polkadot ecosystem, the Plasm project provides a very solid foundation for the operation of smart contracts for various DApps that are about to appear in the Polkadot project. Because it is compatible with applications in the Ethereum ecosystem, supports the development and operation of smart contracts in the Assembly computing environment, and supports the development and operation of smart contracts on L2, so for DApp applications in the Polkadot ecosystem, it is It is a very high-quality choice for the underlying smart contract platform.
The Kilt project focuses on providing authentication in a distributed fashion. The identity authentication function is a must-have condition for large-scale financial applications. Although the current DeFi applications are hot, they are still financial transactions between anonymous users. Therefore, it is impossible to promote the application on a large scale. The Kilt project can provide participant identity authentication in a distributed manner, and the granularity of identity authentication is finer than that of existing physical entities. So Kilt will be widely adopted. Obviously, the market has a clear judgment on this, so it has begun to support Kilt as a parachain in the Polkadot ecosystem.
Each of the three slot auction winners in the test environment has its own distinct characteristics. And more importantly, these three projects have been developed for a period of time, and the quality of the projects has been relatively well guaranteed. Therefore, when they actually start running in the Kusama and Polkadot environments, they should be able to achieve the functions they expect to provide. In addition, because these three projects focus on different aspects, they can form a relatively strong complementarity among each other. The rapid establishment of such an ecology will help prevent subsequent imitators from entering such an ecology. So for each of these three projects, it is very beneficial for each of these three projects to win the slot auction. I think these three projects should try their best to cooperate with each other, establish an ecology that is beneficial to each other, and jointly build barriers to defend against late competitors.
It should be noted that the success of these projects in the Rococo test environment does not directly infer that these three projects will naturally win in the Kusama and Polkadot environments. After all, it is not voting with real money. When slot auctions in the Kusama and Polkadot ecology really affect relevant interests, only the support of holders with enough votes can really determine whether each project can really obtain the lease right of the parachain.
In terms of the value of the tokens of these three projects, it is obvious that the three projects are very valuable, so the tokens of the three projects must also be valuable. But in terms of market recognition, the performance of the tokens of the three projects will be different. In view of the current upsurge of DeFi, it is obvious that the market will very much recognize the value of the Acala project. Its tokens will also rise soon after they are listed and circulated. The tokens of Plasm and Kilt will also rise, because the market has already judged the value of these two projects, so there are also expectations that these two projects will generate great value in the future. But in terms of the so-called fundamentals, the application on Acala will definitely take the lead in the application of Plasm and Kilt. This will be directly reflected in Acala's TVL, which means that the price of Acala's currency will be supported by fundamentals. As TVL continues to rise, the value base of Acala tokens will therefore be stronger, and the price of Acala tokens will therefore be more stable. However, Plasm and Kilt need time to implement applications on top of them, so their token prices will be more volatile. But because these two projects themselves have very strong value, their tokens also have fundamental support. In addition, the Acala project directly faces retail customers, while the Plasm and Kilt projects require the support of application development teams or ecological participants. Such increased complexity will definitely lead to a longer application implementation cycle. But once such a foundation is established, its ecology will be more stable.
In general, I think these three projects are very valuable projects in the Polkadot ecosystem. They are now winning slot auctions, which shows that the market recognizes their value. As the first three projects to go online in the Polkadot ecosystem, it is believed that they will receive very strong support from the resources in the Polkadot ecosystem, so the probability of project success is very high.
