Polkadot has been making sharding plans for some time now, and it seems they’re about to realize it. The ecosystem has been doing everything to maximize the user experience on its ecosystem, and the recent milestone achieved by Acala Network will enhance it further.
Acala Network, a DeFi hub for DOT blockchain, secures a parachain slot on Rococo testnet. Acala network is the Polkadot parachain.
Before securing this slot, the network already launched an EVM (Ethereum Virtual Machine) last month. Acala launched its EVM on Polkadot’s Substrate framework to ensure the network’s interoperability with assets based on Ethereum.
Implications of Parachain Launch on Polkadot
With the parachain launch, the platform makes progress in its plans to provide cross-chain interoperability on the Polkadot ecosystem.
Polkadot parachain ecosystem will depend on sharded sidechains for parallel transaction processing. Parachains are usually acquired through an auction. Many projects will bid for the slot in such a process, but the winner will be the project with the highest bid.
In August 2020, Polkadot blockchain launched a parachain testnet called Rococo. The launch aims to test the inter-shard communication protocols in place before DeFi projects start deploying on its sister network Kusama and finally on the mainnet.
Ongoing Developments on Polkadot Network
Acala is making plans to launch a stablecoin that’ll be pegged on dollars. According to the network, it will design the coin compatible with all projects on the Polkadot blockchain.
Another development is the Polkadot DAO Alliance uncovered recently. According to the details, 11 initiators established it, and the first global summit will be coming up on April 6th & 7th online. We learned that some of the 11 initiators include, Plasm, SubDAO, Stafi, Zenlink, DeepDAO, Bifrost, Phala, Darwina, etc.
Moreover, the alliance aims to facilitate decentralized governance in Polkadot. Also, it’ll create a development fund to support startups on the Polkadot blockchain.
Consequently, such developments have helped the native DOT token to gain 250% from early 2021. As of press time, DOT is trading at $44.43. This is according to the 2021 cryptocurrency market capitalization charts.