{"id":405478,"date":"2022-02-12T20:13:00","date_gmt":"2022-02-12T17:13:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/how-polkadots-parachain-auctions-make-a-decentralized-web3-possible\/"},"modified":"2022-02-12T20:13:00","modified_gmt":"2022-02-12T17:13:00","slug":"how-polkadots-parachain-auctions-make-a-decentralized-web3-possible","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/how-polkadots-parachain-auctions-make-a-decentralized-web3-possible\/","title":{"rendered":"# How Polkadot\u2019s parachain auctions make a decentralized Web3 possible"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a26d7f975c2e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a26d7f975c2e\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/how-polkadots-parachain-auctions-make-a-decentralized-web3-possible\/#Polkadot\" >Polkadot<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/how-polkadots-parachain-auctions-make-a-decentralized-web3-possible\/#Kusama\" >Kusama<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># How Polkadot\u2019s parachain auctions make a decentralized Web3 possible <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>When Gavin Wood co-founded Ethereum, he <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/gavofyork.medium.com\/why-we-need-web-3-0-5da4f2bf95ab\">stated<\/a> that it would \u201callow people to interact in mutually beneficial ways without anyone needing to trust each other.\u201d In theory, such a platform would pave the way for Web3, characterized by decentralized or distributed network architectures, that would lay the groundwork for a truly open internet where we would not have to blindly entrust our data to monopolistic corporations or get permission from them in order to participate.<\/p>\n<p>Since its inception in 2015, however, Ethereum has simply failed to adapt fast enough and keep up with the pace. Transactions costs for decentralized <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lications (DApps) have been too high while transaction speeds have been too slow. Wood left the Ethereum team in 2016 and founded the framework for a decentralized Web3: Polkadot. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-02\/59e87f1d-1a91-4a80-b62c-7f3204fe9497.png\"><\/figure>\n<p>With its <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">series<\/a> of parachain auctions beginning to turn heads, the blockchain of blockchains is rounding up a very exciting year, starting with the launch of Kusama, its canary network. Kusama\u2019s motto is \u201cexpect chaos.\u201d And, looking back, it\u2019s clear that the network\u2019s expected chaos during its parachain auctions laid the framework for a sturdy Polkadot foundation and an eventual decentralized Web3 in the coming years.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>What are parachains: A guide to Polkadot &amp; Kusama parachains<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Polkadot\"><\/span>Polkadot <span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The capacity to communicate is part of what sets Polkadot apart from Ethereum and other blockchains. Polkadot\u2019s emphasis on parachains, formally a parallelizable chain, is a driver in propelling one of the core principles behind Web3 forward: The ability to communicate between different systems. Within the ecosystem, parachains run in parallel and any type of data may be sent between them due to Polkadot\u2019s cross-chain composability, opening up possibilities for new use cases. Thanks to cross-network bridges, parachains can also be connected to external networks such as Bitcoin, Ethereum and others. By this token, parachains are unique, independent and designed for a blockchain\u2019s specific needs unlike Ethereum\u2019s shards, which are identical by design and less adaptable. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Building multichain is a new necessity for DeFi products<\/em><\/strong><\/p>\n<p>Essentially, Polkadot is built around the Relay Chain \u2014 the central chain of Polkadot \u2014 which ensures interoperability between other blockchains in the network, allowing developers to safely build their own private blockchains. While the current relay chain processes transfers, applies governance protocols and offers staking services for the Polkadot network, an upcoming series of parachains is expected to provide advanced features including improved functionality and cross-chain compatibility. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-02\/eefdb52b-e653-4ec6-8117-abf4ea2dbe4f.png\"><\/figure>\n<p>If the Relay Chain represents the proverbial hub, parachains are essentially Polkadot\u2019s spokes. Each parachain is a blockchain capable of running its own consensus algorithm, utilities, tokens and so on. Since the Relay Chain doesn\u2019t support smart contracts or other specific features, those responsibilities are passed onto parachains. <\/p>\n<p>It\u2019s worth noting that parachains are not bound to any rules apart from the requirement that they are trustlessly validated. Polkadot limits the number of parachains to 100 \u2014 a hard limit creating competition among projects hoping to connect to Polkadot. To connect, potential parachains must win a parachain slot auction by outbidding other projects. Once a parachain wins a slot, it bonds Polkadot (DOT) tokens to pay for its slot lease (parachain slots are never sold, only leased). If these auctions sound complicated or perhaps obscure, it\u2019s because parachain slots are scarce and Polkadot\u2019s intention is to prioritize serious and high-quality projects.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>How liquid staking disrupts parachain auctions on Polkadot<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Kusama\"><\/span>Kusama <span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Officially speaking, Kusama is a network built as a risk-taking fast-moving \u201ccanary in the coal mine\u201d for its cousin Polkadot. As Kusama <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/kusama.network\/\">puts<\/a> it: <\/p>\n<blockquote><p>\u201cIt\u2019s a living platform built for change agents to take back control, spark innovation and disrupt the status quo.\u201d <\/p><\/blockquote>\n<p>The network billed itself as allowing for the most realistic testing environment possible for blockchain projects, and you\u2019d be forgiven for assuming Kusama for some sort of doppelganger since it has an almost identical architecture and structure to Polkadot apart from its capacity for fast upgrades. The network hasn\u2019t only been used for parachain candidates to innovate and test changes, but also as a proof of concept for Polkadot\u2019s sharded model.<\/p>\n<p>For Kusama, auctions have proved key to its scalable multichain architecture where parachains connect to the network by leasing a slot on the Relay Chain via a permissionless auction. When Polkadot initially reported on the launch of its parachain auctions, it <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/polkadot.network\/blog\/polkadot-is-ready-for-parachains\/\" data-amp=\"https:\/\/polkadot-network.cdn.ampproject.org\/c\/s\/polkadot.network\/blog\/polkadot-is-ready-for-parachains\/amp\/\">noted<\/a> how Kusama had successfully completed 11 parachain auctions since beginning in June. Since then, over 2.4 million Kusama tokens have been contributed by more than 49,000 unique addresses, signaling some rather significant community interest. <\/p>\n<p>Further, the fact that there were no technical issues throughout the parachain auctions proved to galvanize Polkadot\u2019s preparation for its own auctions. It\u2019s becoming clear that a gradual rollout is central to Polkadot\u2019s success, with the total number of parachains onboard to Polkadot not exceeding 75 percent of those running on Kusama in a bid for quality over quantity. The success of Kusama undeniably spells a bright future for Polkadot. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>How much intrigue is behind Kusama\u2019s parachain auctions?<\/em><\/strong><\/p>\n<p>The path toward a decentralized internet starts with parachain auctions, beginning with those that are starting on Kusama. Web3 is focused on returning the control of the internet to users and that is exactly what is happening with the parachain auctions where everyone is free to participate. Polkadot\u2019s ongoing parachain auctions are bound to be successful thanks to rigorous testing on Kusama and will ensure a decentralized Web3 by connecting different blockchains together. The future is likely to see Kusama bridged to Polkadot for cross-network interoperability \u2014 the ultimate realization of Web3.<\/p>\n<p class=\"post-content__disclaimer\"><em>This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.<\/em><\/p>\n<p class=\"post-content__disclaimer\"><em>The views, thoughts and opinions expressed here are the author\u2019s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.<\/em><\/p>\n<div>\n<div style=\"background: rgb(239, 239, 239); border: 1px solid rgb(204, 204, 204); padding: 10px;\"><strong>James Wo<\/strong> is an experienced entrepreneur and investor in the digital assets space who founded Digital Finance Group in 2015, where he oversees over $1 billion assets under management. He is an early investor in companies like LedgerX, Coinlist, Circle, 3iQ. James is also an early investor and supporter of Polkadot and Kusama Network. He contributes substantially to the ecosystem through capital allocation, donations and actively supporting the Parachain Auctions. Additionally, James serves as the board and committee member of the Chamber of Digital Commerce and acts as chairman at UAE Licensed Matrix Exchange.<\/div>\n<\/div>\n<p><template data-name=\"subscription_form\" data-type=\"defi_newsletter\"><\/template><\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/how-polkadot-s-parachain-auctions-make-a-decentralized-web3-possible\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# How Polkadot\u2019s parachain auctions make a decentralized Web3 possible &#8221; When Gavin Wood co-founded Ethereum, he stated that it would \u201callow people to interact in mutually beneficial ways without anyone needing to trust each other.\u201d In theory, such a platform would pave the way for Web3, characterized by decentralized or distributed network architectures, that&#8230;<\/p>\n","protected":false},"author":1,"featured_media":405479,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDIvYTcxNWUwMTUtNzJkZi00MzEyLTgwNWEtYmFlOGRlMjRiM2IwLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,74868,74891,75168,67880,4965],"class_list":["post-405478","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-defi","tag-ethereum","tag-polkadot","tag-auction","tag-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/405478","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=405478"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/405478\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/405479"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=405478"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=405478"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=405478"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}