Polkadot and the launching of its parachain auctions have generated a lot of interest in recent months. A parachain auction is a competitive bidding procedure in which new blockchain projects compete to join the Polkadot network.
Parachain Launch of Polkadot
Buy the rumor, sell the fact is a shared trading strategy that explains a price increase in the lead-up to a favorable event or news release. Then followed by a price decrease after the anticipated positive event occurs.
This auction is nothing short of a watershed moment in Polkadot’s history. One that, at long last, marks the start of what we can only anticipate will be a quickly expanding ecology.
Despite this game-changing occurrence, many observers have viewed Polkadot’s (DOT) recent performance as lackluster. Polkadot (+54 %) had outpaced both Ethereum (+30 %) and Bitcoin (+18%) over the previous three months.
DOT’s Recent Poor Performance
The team has seen DOT sell off quite a bit since the parachain auction, as buy the rumor, sell the fact traders drive down the price of DOT. Investors appear to have purchased DOT before the start of the parachain auction (accepting the story) and then sold DOT on the day the parachains became life (selling the fact).
This is most certainly one of the main reasons for DOT’s recent poor performance.
Is it possible that these investors have just given Americans the best Black Friday deal ever? A low DOT price just as developers start building on it?
Imagine coming into a room and being unable to communicate with anyone else in the room; this is how most blockchains operate. Because of the linguistic barrier, many blockchains cannot communicate with one another. Bitcoin, for example, serves as a functioning store of value. Ethereum serves as a platform for new establishing crypto projects, cannot communicate with one another.
Polkadot allows these two blockchains to communicate with one another, and it also allows the best features of each blockchain to be used in tandem. It was created with one goal in mind. That is to connect a complete network of blockchains, including Bitcoin, Ethereum, and all those other cryptocurrencies you’ve never heard of. Without going into too much detail about the underlying technology Polkadot, this new approach to blockchain technology represents a critical technological and financial potential.
The Promising Crypto
To grasp what Polkadot is and why it’s so promising, we must first define one of the most pressing issues in today’s blockchain and crypto sector: blockchain interoperability. This is a technical term for how blockchain networks communicate with one another.
Currently, multiple blockchains cannot connect, putting a stop to blockchain technology’s overall narrative of rebuilding the financial world from the ground up. If one chooses to develop on Cardano, it won’t communicate with the Ethereum blockchain. Which means you’ll lose out on Ethereum’s enormous ecosystem.
This is when Polkadot comes to the rescue.
Polkadot allows different blockchains. Which it refers to as ‘parachains,’ to work and communicate at scale (like how people can transact across other banks).
Polkadot allows developers to customize the specific features they want. It is allowing them the freedom to choose which portions of the Polkadot network work best for their project and which don’t. Furthermore, rather than being limited to the blockchain on which they developed their project, it allows them to function across several blockchains.
Polkadot’s Ecosystem have Officially Opened
The cryptocurrency and blockchain industries keenly anticipate Polkadot parachains. The Polkadot team has been working on this for five years. The launch represents a tremendous opportunity for blockchain businesses, investors, and individuals interested in cryptocurrency.
Polkadot’s parachains, on the other hand, are unique. Project-specific layer-1 blockchains that connect into the Polkadot ecosystem and feed into the main chain (called the relay chain).
These parachains now have access to new functionalities thanks to their integration into the Polkadot system, including:
- Scalability: Transactions are quick, and users don’t have to worry about long wait times or high costs.
- Interoperability refers to the ability of the parachains to communicate with one another.
Polkadot’s interoperability is one of the reasons it’s such a fascinating project to follow.
Holding Polkadot’s native cryptocurrency, DOT gives exposure to Polkadot and all the additional blockchain projects (parachains) that are on top of it. While Polkadot (DOT) may offer a Black Friday pricing cut, Revix provides a better deal on fees.
Revix is a crypto investing platform based in Cape Town. It is conducting a Black November promotion geared to get a user started on a crypto investment adventure. Revix users can get 100 percent off all buy-in costs on all assets on the platform. This will be between November 19 and November 30. These instantly diversify crypto portfolios created for investors who don’t have the time to keep up with the crypto market but still want to participate.
There’s still time to get in on the ground floor of the blockchain revolution that’s changing the world today. This is the chance to make Black Friday 2021 a year to remember as the year that improved the financial situation.
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