Polkadot’s upcoming parachain auction gets support from Binance

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Binance one of the leading cryptocurrency exchange and has always supported the multichain block chain network Polkadot

It was officially announced by the Company this week that it will be starting the Polkadot Parachain auction.

Parachains what are those?

Parachains are project specific blockchains that are used within the Polkadot (DOT) and Kusama (KSM) networks.

Parachains removes the limitations of using only one specific codes for building any decentralized applications for example if we are building any decentralized apps on Ethereum then the app needs to run on the Ethereum blockchain specific rules or codes set on the network whereas in Parachain different and independent blockchains can coexist and can be used at the same time.

With different blockchains all merged on the single network it will cater all the needs for different variety of services like For eg: Gaming, NFTs, Finance, Defi all merged into one like internet.

Difference between a parachain and a smart contract?

Smart contracts are basically a string of commands that execute a particular function that its programmed to do on a block chain like Ethereum and Cardano which uses smart contracts to built applications to built on their network whereas parachain are not a contract but an entire group of blockchain which is independent and have different functionality and can communicate with each other to build a network of blockchains.

What lead to the launch of Parachain on DOT network?

The success of the parachains launched on the Kusama network paved way and made the Polkadot more ready to launch parachains on its networks.

The auctions on the Polkadot are ready to begin on November 11 2021 and will last for five weeks

Announcements leading to DOT’s price surge

Any new developments or announcements in a particular blockchain or network leads to the price fluctuations in the native coin of the respective network well DOT is not different the announcement of parachain auctions to begin on November 11 leads to around 20% surge in DOT prices over various exchanges making DOT to touch $43 and is currently trading at the same price at the time of this article.

Trade analysts and crypto enthusiasts are very bullish on the DOT prices based on the latest announcements.

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