How Polkadot Parachain Auctions Bring Possibilities to Decentralized Web 3

Commentary: Polkadot’s parachain auction is destined to succeed, and by connecting different blockchains together, will ensure the realization of a decentralized Web 3.

When Gavin Wood co-founded Ethereum, he said it would “allow people to interact in mutually beneficial ways without requiring mutual trust.” In theory, such a platform would pave the way for Web 3, characterized by a decentralized or distributed network architecture that would lay the foundation for a truly open Internet. We don’t have to blindly entrust our data to monopolies or get their permission to participate.

However, since its inception in 2015, Ethereum simply has not been able to adapt quickly and keep pace. The transaction costs of decentralized applications (DApps) are too high, and the transaction speed is too slow. Wood left the Ethereum team in 2016 to create a decentralized Web 3 framework: Polkadot.

How Polkadot Parachain Auctions Bring Possibilities to Decentralized Web 3

Blockchain within blockchain is wrapping up a very exciting year as its series of parachain auctions start to shine, starting with the launch of its canary network Kusama. Kusama’s slogan is “Expect Chaos”. And, looking back, it’s clear that the network’s expected chaos during its parachain auction set the stage for a solid foundation for Polkadot and the eventual Decentralized Web 3 for years to come.


Communication capabilities are part of what sets Polkadot apart from Ethereum and other blockchains. Polkadot’s emphasis on parachains, officially parachains, is one of the core principles behind Web3: the ability to communicate between different systems. Within the ecosystem, parachains operate in parallel, and thanks to Polkadot’s cross-chain composition capabilities, any type of data can be sent between them, opening up the possibility of new use cases. Parachains can also connect to external networks like Bitcoin, Ethereum and others thanks to bridges across the network. With this as a mark, parachains are unique, independent, and designed for the specific needs of the blockchain, unlike Ethereum’s sharding, which has the same design and is less adaptable.

Essentially, Polkadot is built around the Relay Chain — Polkadot’s central chain — which ensures interoperability between other blockchains in the network, allowing developers to securely build their own private blockchains. While the current relay chain handles transfers, applies governance protocols, and provides staking services for the Polkadot network, an upcoming series of parachains is expected to offer advanced features, including improved functionality and cross-chain compatibility.

How Polkadot Parachain Auctions Bring Possibilities to Decentralized Web 3

If relay chains represent hubs, parachains are essentially the spokes of Polkadot. Each parachain is an independent blockchain capable of running its own consensus algorithms, utilities, tokens, and more. Since the relay chain does not support smart contracts or other specific functions, these responsibilities are shifted to the parachain.

Notably, parachains are not bound by any rules other than requiring them to pass trustless verification. Polkadot limits the number of parachains to 100 — a hard limit that creates competition among projects wishing to connect to Polkadot. In order to successfully access Polkadot, candidate projects must win against other projects to win the parachain slot auction. Once a parachain project wins a slot, it uses Polkadot (DOT) tokens to pay for its slot lease (parachain slots are never sold, just leased). Parachains are scarce, and Polkadot aims to prioritize serious and high-quality projects.


Officially, compared to its cousin Polkadot, Kusama is an adventurous network that seeks to make big strides. As the Kusama Network says:

“It’s an online platform for change-makers to take back control, inspire innovation and disrupt the status quo.”

The network advertises itself as providing the most realistic testing environment for blockchain projects, and you can think of Kusama as some kind of duo, as its architecture and structure are almost identical to Polkadot, aside from the ability to upgrade quickly. The network is being used not only to innovate and test changes to parachain candidates, but also as a proof-of-concept for Polkadot’s sharding model.

For Kusama, auctions have proven to be the key to its scalable multi-chain architecture, where parachains rent a slot on the relay chain through a permissionless auction to connect to the network. When Polkadot initially reported the launch of its parachain auction, it pointed to how Kusama has successfully completed 11 parachain auctions since it began in June.

Additionally, it turned out that there were no technical issues throughout the parachain auction process, which inspired Polkadot to prepare for its own auction. It is clear that gradual rollout is at the heart of Polkadot’s success, the total number of parachains on Polkadot does not exceed 75% of those running on Kusama, and the pursuit of quality over quantity. Kusama’s success is undeniably a metaphor for Polkadot’s bright future.

The road to a decentralized internet begins with parachain auctions, first of all those started at Kusama. Web 3 focuses on returning control of the internet to users, which is exactly the case with parachain auctions where everyone is free to participate. Thanks to rigorous testing on Kusama, Polkadot’s ongoing parachain auction is destined to succeed and will ensure a decentralized Web 3 by connecting different blockchains together. The future may see Kusama bridged with Polkadot for interoperability across networks — the final realization of Web 3.

Posted by:CoinYuppie,Reprinted with attribution to:
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