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Polkadot (DOT) Gets Ready For Parachain Auctions

· in Breaking, Crypto News
Carlos is an international relations' analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.

Polkadot (DOT), one of the largest cryptocurrencies in the market, has hit a new all-time high in recent hours. The virtual currency was able to reach a high of over $42 a few hours ago. However, it fell below $39 now that Bitcoin is traded close to $56,000 after reaching a new all-time high of around $57,600. 

Polkadot Continues Moving Higher

The Polkadot ecosystem and community are getting excited about the parachain auctions. In this way, it will be possible for the Polkadot network to get connected to other blockchain networks. This is expected to increase interoperability among blockchains and help the crypto market to move forward. 

In order to increase interoperability, Polkadot uses a mechanism known as cross-chain message passing-lite. This helps different blockchains to share valuable information. The next step would be for the community and the team working on it to find issues within the code. 

As Polkadot has always promoted, they want to become a hub for crypto interoperability. This includes cross-chain data transfers and improving decentralization. With Parachains, it will be possible to help the market move in the right direction in terms of interoperability, communication and decentralization. 

Ethereum and Binance Smart Chain

The other two blockchain networks that have been discussed in recent days were both the Binance Smart Chain (BSC) and Ethereum (ETH). Etheruem expanded in the market as the platform to release dApps and decentralized finance (DeFi) solutions. 

Nevertheless, due to a large increase in gas fees on the Ethereum network and slow transaction times, it is becoming highly difficult to use the different solutions offered by this network. Instead, Binance Smart Chain became a more centralized alternative that is allowing users to enjoy BEP-2 trading and swapping through some DeFi projects such as PancakeSwap or Venus, among others. 

The main difference between these two networks is related to decentralization. Although Ethereum is slower and more expensive to use, it is more decentralized than the Binance Smart Chain (BSC). Thus, it is a thing to take into consideration when we handle funds in both of these networks. 

With the expansion of Polkadot, we can see more interoperability between blockchain networks. This could be also helpful to Ethereum and to increase decentralization in the market. Now, we need to wait and see how the new parachains will be implemented and released to the market. This could help DOT continue moving higher if the crypto market remains in a bullish mode.