Relay Chain</strong></a> and<strong> <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-parachain/">parachains.&nbsp;

/n

Relay Chain can be thought of as <strong>the core of Polkadot.</strong> Essentially, it connects different parachains. Parachains, on the other hand, are similar to <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-plasma/">Ethereum Plasma chains</strong></a>. Basically, they can conduct transactions without relying on the Relay Chain. As a result, parachains can significantly <strong>improve blockchain scalability.</strong></p>\n<p>Parachain projects need to lease a slot for their parachains through the <strong>Parachain Slot Auction</strong> if they want to connect to the Relay Chain. Projects stake <strong>DOT</strong> tokens to bid for a spot in the auction. The ones that stake the biggest amount of DOT tokens become the parachains of Polkadot. They can lease a slot for around 3 to 22 months.</p>\n<p>The staked DOT is locked into the project's slot auction bid once the users engage in the crowdloan. The tokens stay locked in the parachain slot until the lease of a slot ends.</p>\n<p>You might be wondering how to get the DOT tokens. <strong>This is where Polkadot Crowdloan comes in </strong>since it can be used to obtain these tokens. Essentially, crowdloan is a <strong>crowdsourcing system.</strong> In a crowdloan, users stake DOT to support the parachain projects they favor. For doing that, they get various rewards, including tokens from the parachain they support.</p>","level":"easy","meta_title":"What is Polkadot Crowdloan? 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Traders seek formations, trends, and patterns in market structure using price action and chart analysis. They do that in order to generate new trading ideas.</p>\n<p>Price action traders mainly rely on examining the price behavior of a certain asset. Many price action traders that look for short-term investment opportunities utilize price action specifically to determine trade setups.</p>\n<p>Other traders, on the other hand, use a variety of technical indicators to improve their price movement analysis. The premise is that by combining price movement analysis and technical indicators, more trustworthy trading signals can be generated.</p>\n<p>Various charting techniques can be employed to assess price action. The <a href=https://www.bitdegree.org/"https://en.wikipedia.org/wiki/Candlestick_chart/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Japanese candlestick chart</strong></a>, line chart, and bar chart are the most prevalent. Traders use all of them to better identify and comprehend market trends. This is the case because they all depict price activity in different ways. Though keep in mind that each of these chart settings has its own set of benefits. Thus, which one to employ for price action analysis is a matter of personal needs.</p>\n<p>Though the chart patterns that the price action relies on the most are <strong>candlestick patterns.</strong> Such patterns are basically <strong>recurrent price action formations.</strong> Traders can spot and use them to generate new trading ideas. The whole concept of this trading approach is that these patterns tend to repeat themselves. Therefore, trade ideas based on candlestick patterns are usually successful.</p>","level":"easy","meta_title":"What is Price Action? Definition & Meaning | Crypto Wiki","meta_description":"Price Action meaning: Price Action - the movements of the financial asset’s price over a period of time.","meta_keywords":null,"language":"en","created_at":"2022-05-24T05:22:04.000000Z","updated_at":"2022-06-07T11:49:23.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-price-action"},"prevSection":{"id":1010,"original_id":null,"author_id":42,"translator_id":null,"title":"What is Plasma?","slug":"what-is-plasma","section":"P","keyword":"Plasma","status":"published","definition":"an off-chain scaling solution created for the Ethereum blockchain that seeks to increase the efficiency of the network.","content":"<p>In August 2017, <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/who-is-vitalik-buterin/">Vitalik Buterin</strong></a> <strong>and Joseph Poon</strong> <strong>presented Plasma as a <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-scaling-solution/">scaling solution</a> for Ethereum</strong>. However, the concept might also be adapted and integrated into other blockchains. Joseph Poon was also a proponent of <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-lightning-network/">the Lightning Network</strong></a> (created for Bitcoin). This explains the scaling parallels between Plasma and Lightning Network. However, note that their techniques and procedures still differ.</p>\n<p>In a nutshell, Plasma is an off-chain solution. It aims to substantially improve the performance of the Ethereum network. Plasma does that by shifting the majority of tasks from the main chain to a series of smaller chains.&nbsp;</p>\n<p><strong>The Plasma structure is developed to work as a blockchain tree</strong>. It has numerous \"child chains\" constructed on top of the \"parent chain.\" The Plasma framework is based on <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-smart-contract/">smart contracts</strong></a> and <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-merkle-tree/">Merkle Trees</strong></a>. This allows for the creation of an infinite number of <strong><a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-sidechain/">side chains</a></strong>.</p>\n<p>The child chains are developed to run a customized smart contract. Because of that, businesses are able to tailor the Plasma structure to their own requirements. This allows users to build different Plasma smart contracts for distinct use cases.&nbsp;</p>\n<p><strong>Plasma leverages the security provided by the main chain</strong> to set up multiple child chains to work in a predetermined way. As a result, the main Ethereum blockchain is less likely to become clogged.</p>\n<p>The public repository of Plasma can be acquired on their GitHub page. Besides being an improvement for Ethereum, Plasma can be a great starting point for other networks. It could provide them with scaling solutions that they might need. However, keep in mind that Plasma alone is not a project. It&rsquo;s a framework for developing scalable applications. The applications can be deployed in a variety of ways by various research groups or businesses.</p>","level":"easy","meta_title":"What is Plasma? Definition & Meaning | Crypto Wiki","meta_description":"Plasma meaning: Plasma - an off-chain scaling solution created for the Ethereum blockchain that seeks to increase the efficiency of the network.","meta_keywords":null,"language":"en","created_at":"2022-05-20T08:35:35.000000Z","updated_at":"2023-01-31T13:06:09.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-plasma"},"currentChapter":"P","currentSection":"what-is-polkadot-crowdloan","chapterTitle":"P","readingLevel":"easy"},"url":"/crypto/learn/crypto-terms/what-is-polkadot-crowdloan","version":"cdd198d50cbe5c9c21c9329d7c096ffc"}" class="container-fluid d-flex crypto-book p-0">

Crypto Terms: Letter P

What is Polkadot Crowdloan?

Polkadot Crowdloan MEANING:
Polkadot Crowdloan - the process of staking DOT tokens in the Polkadot Slot Auction to support specific projects.
Easy
1 minute

Let's find out Polkadot Crowdloan meaning, definition in crypto, what is Polkadot Crowdloan, and all other detailed facts.

The process of staking Polkadot tokens is known as Polkadot Crowdloan. It's done specifically to raise funds for certain projects.

Polkadot is an open-source protocol. It allows data and applications to be shared between different blockchains. There are two types of blockchains in the Polkadot ecosystem – the Relay Chain and parachains

Relay Chain can be thought of as the core of Polkadot. Essentially, it connects different parachains. Parachains, on the other hand, are similar to Ethereum Plasma chains. Basically, they can conduct transactions without relying on the Relay Chain. As a result, parachains can significantly improve blockchain scalability.

Parachain projects need to lease a slot for their parachains through the Parachain Slot Auction if they want to connect to the Relay Chain. Projects stake DOT tokens to bid for a spot in the auction. The ones that stake the biggest amount of DOT tokens become the parachains of Polkadot. They can lease a slot for around 3 to 22 months.

The staked DOT is locked into the project's slot auction bid once the users engage in the crowdloan. The tokens stay locked in the parachain slot until the lease of a slot ends.

You might be wondering how to get the DOT tokens. This is where Polkadot Crowdloan comes in since it can be used to obtain these tokens. Essentially, crowdloan is a crowdsourcing system. In a crowdloan, users stake DOT to support the parachain projects they favor. For doing that, they get various rewards, including tokens from the parachain they support.