Konomi Network has registered a parachain on Rococo V1 and it is waiting for the action to start again. Rococo is a testnet designed to specifically test parachains and their functionality. Available as a Proof of Authority, it plays an important role in testing the scalability of Polkadot. Being one of the first teams to participate in the Rococo testnet, will allow Konomi to play the role of an early adopter, giving it an edge over the other projects.
What is Konomi
Konomi Network is a decentralised money maker protocol. Built on Polkadot’s Substrate Framework, it aims to support more assets in a Polkadot ecosystem. Users will be able to borrow, lend, trade, earn interest and access liquidity products for DOTs through the protocol. Konomi has also issued a native token, which is needed for governance and to kickstart the liquidity.
How Parachains work
Polkadot’s parachain system works in a parallel manner, processing the transactions that occur on different parachains simultaneously. Parachain are acquired in an auction, where the projects try to outbid each other. These parachains are validated by the nodes of the Polkadot Relay chain. Essentially these parachains run as separate blockchains, while remaining a part of the Polkadot ecosystem. This parachain launch will take the Polkadot ecosystem one step further to provide cross-chain interoperability [2].
Figure 1. Polkadot’s Parachains
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Obtaining a parachain slot
The number of parachain in the Polkadot ecosystem is finite. Right now the number is limited to 200 parachains, this number could later be increased if the demand for the parachain spikes. The limited number of parachain is done to ensure security on the Polkadot relay chain, allow the projects that add the most value to Polkadot to onboard first, maintain a demand-supply balance for parachain slots.
The bidding team deposits DOT and decides on the period of time it wants to secure a parachain for (6, 12, 18 and 24 months). The auction mechanism is built so that it maximizes the amount of DOT held on the bond for 24 months. Meaning that the highest paying bidder for any given slot’s lease period may not always “win” [3].
Figure 2. Parachain auction system
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Reference list
- Cointelegraph. (n.d.). Polkadot moves towards sharding as Acala Network secures first Rococo parachain slot. [online] Available at: https://cointelegraph.com/news/polkadot-moves-towards-sharding-as-acala-network-secures-first-rococo-parachain-slot [Accessed 4 May 2021].
- academy.ivanontech.com. (n.d.). Top Polkadot Projects 2021 — Exploring The Polkadot Ecosystem. [online] Available at: https://academy.ivanontech.com/blog/top-polkadot-projects-2021-exploring-the-polkadot-ecosystem [Accessed 4 May 2021].
- Polkadot Network. (2019). Polkadot Parachain Slots. [online] Available at: https://polkadot.network/polkadot-parachain-slots/ [Accessed 4 May 2021].
About Konomi
Konomi is a decentralized money market protocol built using Polkadot’s Substrate. Konomi is working to provide active money markets across the entirety of the Polkadot ecosystem, as well as expand and integrate into cross-chain networks. By introducing a fluid market for cross-chain crypto assets, Konomi hopes to provide an overall better user experience that is accessible regardless of the native network the end user prefers.
Stay in touch with us through:
Website: https://www.konomi.network/
Twitter: https://twitter.com/KonomiNetwork
Telegram: https://t.me/konominetwork
Telegram Announcements: https://t.me/konominetworkchannel
Telegram (Vietnam): https://t.me/konominetwork_vn
Reddit: https://www.reddit.com/r/KonomiNetwork/
