Polkadot (DOT) Rallies 20% On News of Parachain Launch, Auctions Starting Next Month

It looks like Polkadot (DOT) is now closer to launching the much-awaited parachains and expanding the Polkadot ecosystem. On Wednesday, October 13, after five years of development, Polkadot founders Gavin Wood and Robert Habermeier announced that the blockchain is capable of supporting its first parachains.

The news was enough to trigger a major DOT price rally. As of press time, Polkadot (DOT) is up 20% and currently trading at $42.08 with a market cap of $40.9 billion.

The Polkadot parachains are specialized blocks that help in connecting with the Polkadot Relay Chain thereby creating ‘multichain’ architecture. Parachains are the final piece of the core technology outlined in the Polkadot architecture.

Speaking at the Sub0 conference on Wednesday, the Polkadot founders announced that they have overcome the technical barriers to launch parachains on Polkadot. the official announcement reads:

They explained that parachains, auctions, and crowdloans code is now ready for an initial production release on Polkadot. The last technical steps necessary to complete before launching parachains on Polkadot were the completion of Polkadot’s full code audit, which is now done, and the finalization of parachain disputes, which can now move forward.

Polkadot Parachain Auctions Starting Next Month

The Polkadot council will start auctioning the Polkadot parachains starting next month November 11, 2021. However, a formal vote from the Council and the community will happen through a public referendum.

There will be eleven different auctions happening over a four-month period through March 2022. Users willing to participate in parachain crowdloans will require unbonded DOT tokens.

Polkadot notes that its parachains have already been successfully running on Polkadot’s ‘canary network’ like Kusama. So far, the Kusama network has 12 live parachains. These parachain teams have also conducted multiple forkless upgrades on the network while processing millions of transactions.

The Polkadot ecosystem shall be finally undergoing one of its most awaited updates.