Polkadot is amongst the new blockchain networks that allow customizable blockchains to be built. These are called Parachains – they are project-specific and highly dynamic. Polkadot Relay Chain is all the buzz in the budding crypto market.
It is often contested with Ethereum, but the two are quite different. Ethereum is the basis Layer 1 Blockchain technology, whereas Polkadot is the basis Layer 2 technology. This means that all the decentralized applications are developed on the top of Parachaind – not on the Polkadot blockchain itself.
Polkadot is also a public blockchain – with no owner or specific authority in the process of profit-making. Most of the decisions for this system are taken through DOT. DOT is Parachain’s native token used for governance and campaigns.
Two ways to the auction:
In order to be a part of the Polkadot Parachain auction, you can use centralized exchanges. There’s a crowd loan app and software through which you can easily vote and contribute.
If you want to stay within the Parachain ecosystem, you can install Polkadot’s native Extension to your browser. You would have to create an account there and it will automatically link everything. You can also easily transfer your DOT to the parachain through the extension. You would need DOTs to be a part of the auction.
Many people go for the extension in order to directly support the projects of their choice. If you are a fan of a more direct and centralized process, then you must participate in the auction through the exchange. The exchange process is more clear and helps you to avoid any unnecessary mistakes.