Parachain slot auctions emerged from a controversy in the middle of this year. Some investors think that this platform that provides technology and location for project development has great potential. Some people think that such a project is nothing but thunder and rain. Is Polkadot, the leader of cross-chain projects and parachain slot auctions, considered a success? Hello everyone, I’m Desmond from the Daily Coin Research. Before I start, I hope you can like and share this video to support me and the production team behind me, and to bring the latest information and knowledge of cryptocurrency to more people, especially not that much. Audiences who understand cryptocurrency, as public chains such as Ethereum began to be questioned about performance, cost and other issues , rising stars began to wrestle with Ethereum hoping to share a piece of the pie in the blockchain market.
Polkadot, founded by CTO, currently not only solves the performance problems of Ethereum, but also proposes the concepts of relay chains and parachains, hoping to allow blockchain projects to use the technology they provide, and to provide opportunities for exchanges, cooperation and communication between projects. In this episode, I will introduce to you the architecture and concepts of the relay chain and the parachain, Polkadot and its pilot testnet Kusama, as well as what projects in Polkadot, how to invest, and what precautions are there. Let us understand what a parachain is before we start to introduce Polkadot. Slot auction has two different blockchains in Polkadot's architecture. They are relay chain and parachain. Relay chain is the core blockchain in Polkadot's architecture. It is like an active socket for different parachains. Project insertion. In this case, these parachains are just like our daily electrical appliances.
They need to be powered by movable sockets to operate. This time the situation is similar to the relay chain that provides network resources, computing resources and blocks for parachain projects. Chain security, etc., make parachains work as usual, but the number of parachains is limited. Like active sockets, there are only a few slots. Therefore, if parachains want to use the resources of the relay chain, they need to compete through auctions for the projects of different blockchains. Irrelevant, whether it is the blockchain Substrate constructed by Gavin Wood, the CTO of Polkadot, or heterogeneous blockchains such as Bitcoin, Ethereum, and EOS, are also different and independent blockchains, which do not involve any handover but If the project on Polkdot can take pictures of the parachain slot, it can communicate and cooperate with each other directly or through a transit bridge by participating in the relay chain, thereby generating more overlay services, improving its own scalability, and enjoying the benefits provided by the relay chain.
Security, and technology. As for Kusama, Polkadot's advanced version, it has always assumed the role of "Polkadot Testnet" before the Polkadot mainnet went live. After Polkadot's mainnet went online, Kusama's identity changed to Polkadot's advanced network and many new features. After running the test on Kusama well, it will be added to Polkadot as the first version. Kusama has tried multiple rounds of parachain slot auctions. The auction response has been very enthusiastic, and several projects have emerged from it. We also mentioned on Instagram earlier that when bidding for Kusama's parachain slot, the project needs to lock a large number of Kusama's KSM tokens and determine which project successfully bid for the parachain slot through their number of tokens. Many projects will initiate crowdfunding or crowd loans to raise Kusama's KSM tokens through their own issued tokens, which is to conduct Kusama and Polkadot ecological unique Initial Parachain Offering. They need to pay to buy the coins of these projects, they only need to lend their Polkadot or Kusama coins, as long as they lock the warehouse for one or two years, they can get the tokens of these projects.
When participating in the Kusama parachain auction, there was also an IPO . The Moonriver token price at the time was only about 50 U.S. dollars to nearly 400 U.S. dollars recently, an increase of nearly 8 times. At the beginning, every KSM investment can be exchanged for 14 MOVR tokens , that is, every KSM can be. Earning nearly US$6,000 compared to the current KSM token price is more than US$300.
This IPO has made investors more than ten times more profitable. What is Polkadot after so long? What is the current situation? I just mentioned that Polkadot was founded by Gavin Wood and served as CTO. Gavin Wood is actually the former CTO of Ethereum. Although he is not as famous as Satoshi Nakamoto, Vitalik (V God), etc. The first edition of the Ethereum Yellow Paper defined the Ethereum virtual machine and invented the Solidity language, a language that specializes in writing smart contracts. Gavin Wood proposed the concept of Network 3.0 as early as 5 or 6 years ago. It was aimed at the problem of Ethereum network performance. In addition to improving information transmission, transaction transfer speed, and blockchain capacity issues, writing the Polkadot white paper is also a cross-chain system that can connect public chains to each other while decentralizing and maintaining freedom.
The project ecology will not only be constrained. The development on a public chain will no longer be monopolized by a single institution or enterprise, but can be combined with other public chains to generate growth. Before Polkadot, Gavin Wood was the first to jointly develop and launch a blockchain framework Substrate built-in construction zone with some Ethereum developers. Developers of all the core components required by the block chain do not need to worry about technical or assembly matters. They can simply deploy the elements related to the contract or governance and focus on the development of business logic, while the Polkadot relay chain and the parachain are convenient. It is precisely based on Substrate to develop and construct Polkadot's parachain slot auction. It is auctioned in the form of lease. In fact, only the parachain slots on Polkadot are rented and not sold . Each lease period is 6 months. At auction, four lease periods can be bid. The project can take one or several lease periods . The lease period of Polkadot will be shorter than that of the Kusama parachain slot. The operation of the parachain requires a certain amount of network computing resources, so there is an upper limit on the number of parachain projects.
Gavin Wood represents the parachain. The upper limit of the number is about 100. The number of parachain slots is limited and only one will be released each time and there will be a certain time interval between the release of the next slot, so it is necessary for the project to participate in the auction. Polkadot uses the candle-style auction candle when the candle is extinguished. That is, within a certain time limit, which party has the highest bid, who can get the auction item. Parachain auction will take about a week for the project party to bid on its own.
At the end of the auction, whoever pledges the most DOT can rent this slot, just like Kusama. Most projects will launch relevant reward mechanisms based on cost considerations during auctions, such as launching their own project tokens to reward other users pledged DOT. If the project can successfully rent a parachain slot, users need to wait until the lease period has passed before they can unlock the pledge. In other words, it takes one to two years for users to get back DOT tokens. It is worth noting that the pledged DOT ownership is simply a loss of liquidity, and the project party cannot privately embezzle the user pledged DOT Polkadot's first round of parachain slot auctions will start on November 11th . There are no projects worthy of our attention and investment. At present, there are more than 100 projects participating in the bidding on Polkadot. If it is for the first batch of auctions, there will be 9 and I have 3 of them. The experience in the past is quite different from Metamask .
The first time you use it, you may not be used to it. It takes a little time to get started and familiar with the operation. But precisely because it is more cumbersome and difficult, the threshold is higher and there are more opportunities for profit. Acala is a native The one-stop decentralized financial network and liquidity center in the Polkadot ecosystem can be regarded as Polkadot's all-in-one DeFi hub.
It is compatible with the Layer 1 smart contract platform and can be extended to Ethereum and relies on decentralized stablecoins. AUSD, DOT liquidity bet LDOT and EVM+ and other Acala's Karura projects under Acala have won the Kusama parachain auction in June this year. As for Parallel Finance, it is also a one-stop platform that provides margin collateral, auction loans, and mortgage derivatives. It also claims to be able to achieve The reason why financial products such as automated market makers with higher capital utilization efficiency recommend the above two projects is because the former CEO of Alameda Research Fund and the legendary rich man in the currency circle Sam Bankman Fried also participated in the investment projects invested by Sam brother, such as the previous film.
The performance of Solana and Fantom that have been introduced is also obvious to all. Don’t worry. Moonbeam is a smart contract parachain compatible with Ethereum. It aims to provide developers with greater interoperability and support popular smart contract languages such as Solidity and Vyper. There are Ethereum tools such as Metamask Moonbeam. The reason why it is worth investing is that the team behind it is blessed by Binance Labs, and Moonriver and Moonbeam, which perform best on Kusama, are sister projects. Their new works are also worth looking forward to. Knowing the difference and potential. How can investors participate after the project? In fact, there are currently many crowdfunding platforms that provide channels for investors. The first and foremost, of course, is the official channel Polkadot.js. Since it is officially opened, the security of the official channel is naturally high. DOT Locked in the original address through the official crowdfunding module, the slot will be automatically returned to the DOT after expiration, and the project party cannot access these coins. In addition, there are two officially recognized channels including Zenlink SlotVault. In addition to the currency, you can get a double reward of Zenlink token ZLK.
This method has been used on Kusama's crowdfunding platform. I don’t know if Polkadot will have a similar method. The other is the method that Bifrost SALP also used in Kusama parachain auctions. It supports only 3 projects including these, but it is more flexible than most other bidding parachain projects. It does not require crowdfunders to lock KSM for one year to release the liquidity of KSM. Currently SALP is still not listed. It will be launched as early as the seventh Kusama slot auction period after the audit is completed.
Of course, there are many channel investors in the market. Before participating, you can check the official website of the project party and the announcement on it. It is okay if you are really interested. Participate in their Telegram and Discord to choose other officially recognized participation channels, but Polkadot also specially reminds you to be careful of fraud. Do not share your mnemonic station or account password with anyone, and do not send DOT or KSM directly to anyone. An address has a special transfer method instead of direct transfer because of a legitimate crowdfunding URL. Binance also recently announced that users can directly participate in Polkadot's parachain slot auctions on the platform. Users do not need to register Polkadot's wallet by themselves. It is much more convenient for users to go to Polkadot to open a wallet to reduce a lot of troublesome operation process. If users are interested in the above projects, they can directly use Binance to participate.
Only a click of a mouse can participate. Binance will handle other complicated procedures for users. There will be a 7-day warm-up period for this event, and an additional 30 million US dollars of rewards will be shared. For details, please visit the official Binance website announcement. Here are also a few key points for everyone to understand that users only need to transfer Polkadot's DOT tokens. Deposit to your favorite project to get rewards every hour. These rewards need to manually press the “Receive Profits'' button every hour to participate in the warm-up period. Users can also share an additional $30 million in rewards. Assuming that the selected project is successfully bid, the slot will be The warehouse will be locked for 96 weeks and approximately two years.
If the project fails to bid , the DOT tokens deposited to the event on December 18th will be returned to the user's wallet. Some projects also have auction period lock-up. Within 45 days after the end of the reward auction period, Binance will also provide a product called BDO T's token as a liquidity solution is similar to the current BETH on Binance. Even if the DOT held by the user has not been unlocked, the user can still trade BDOT. When the DOT is unlocked, it can be exchanged for DOT tokens at a price of 1:1 Finally, the rewards of the project team will be given to all users.
Binance will not charge a single cent in the process. It is worth trying this episode. I will introduce you to the concept and architecture of the relay chain and parachain. The communication and communication in the project also told you about the origin of Polkadot, the auction process, and recommended several projects to everyone who is interested. You can also participate in the auction. Welcome everyone to leave a message and exchange what are the most promising ones to participate in the auction. project! If you want to open a Binance account, you can use the link in our video bar to open an account. If you want to watch the complete account opening tutorial, you can watch our previous Binance account opening tutorial video