Polkadot Its CEO was quoted as saying that Ethereum obliges developers to use the network. The successful CEO announced that by breaking this pattern, he would offer developers more freedom with a free development model. Ethereum the project, which was touted as its killer, has begun to make attempts to refute claims about the release of the expected parachains.
Polkadot Parachain Auctions
Polkadot his ecosystem has launched the parachain auctions, which will last for the next few weeks. The first parachain auction resulted in Acala Network, the DeFi liquidity network, winning the slot. Expressing his opinion on this issue, Polkadot CEO Gavin Wood, Polkadot parachainhe said that they offer projects a free application model on their own network, and thus offer freedom, unlike other economic restrictions.
However, Wood added that the economic model of the parachain contract does not require users to purchase a platform token or learn about the DOT framework. An example in this regard Ethereum developers on the blockchain ETH he must use it. This takes the Ethereum network transaction fee to high levels. Wood, CEO of Polkadot, noted the following regarding this issue:
Users of applications built on Ethereum become his captives economically. These users must have ETH on Ethereum and another token that allows them to use an application that is usually created using Ethereum smart contracts. This is a very big limitation.
The Effect of DOT on the Price
Polkadot the launch of parachain is expected to have a positive impact on the DOT price. The increase in the amount of DOTS staked at Parachain auctions has reduced the supply of Polkadot in circulation. The Polkadot network includes a master chain, which is called the ”relay chain”. There are also several parallel zinvir created by users. Polkadot Bison Trails, one of the infrastructure experts, explained their mechanism as follows:
Relay chain is responsible for ensuring consensus and transaction dec among parachains. Parachains are application-specific blockchains within the Polkadot network. Each parachain is a whole blockchain in itself, with its own logic and features. One of the biggest use cases of Polkadot is that it connects blockchain networks that were previously incompatible. This allows you to send values and data between multiple blockchains through a dec layer called a bridge.
Polkadot (DOT) facilitates two main functions, namely management and staking. Analysts give different price targets for Polkadot, while the popular altcoin managed to become one of the leading crypto currencies in 2021. The DOT price has attracted attention with a gain of more than 4 times since the beginning of 2021. The DOT price is trading at $40 as of the time of writing of this article.