The next step in the development of Polkadot has been taken, DeFi platform Acala Network has secured the first parachain on the Rococo testnet.
Acala was launched in January 2020, with the DeFi consortium aiming to create a cross-chain open financing infrastructure for the Polkadot ecosystem. In February, Acala launched an Ethereum Virtual Machine (EVM) based on Polkadot’s Substrate framework, which enables collaboration with Ethereum-based coins.
First parachain auction won
The main blockchain is called the Relay Chain. A limited number of parachains can be attached here, all of which are auctioned. Acala has thus won one such auction and manages a parachain. This multi-chain ecosystem from Polkadot will use sharded sidechains to process transactions in parallel. Polkadot launched Rococo in August 2020 as a parachain testnet to test the communication protocols before deploying projects on Polkadot’s sister network Kusama and eventually the Polkadot mainnet. LINK Chainlink is well known in crypto.
No managers, but code
More news from March 26. If you have studied cryptocurrency and governance models for a little longer, you have probably come across the abbreviation DAO. This stands for decentralized, autonomous organisation.
Imagine a candy vending machine that not only accepts money and gives out candy in return, but also uses that money to automatically reorder new candy. This machine also orders cleaning services and pays its rent all by itself. In addition, if you put money into that machine, you and all other users have a say in which snacks are ordered and how often the cleaning crew comes by. There are no managers, all those processes are pre-written in code.
Since bitcoin no more middlemen
This is roughly how a DAO or a decentralized autonomous organization works. The idea of such a management model has existed since bitcoin succeeded in removing intermediaries in financial transactions from the process. This led to the idea that a company or an organization can function completely without hierarchical management. Stellar XLM is well known in crypto.
So on March 26, the first DAO alliance for Polkadot was announced. The alliance hopes to establish a development fund for startups in Polkadot. “The alliance will establish a multi-million dollar DAO Ecosystem Development Fund to provide financial support for early DAO and Web 3.0 projects.”