Polkadot aims for efficiency so that transactions don’t compete against all other smart contracts in the same ecosystem.
It has announced the launch of Parachains to mitigate the need for networks to rely on layer-2 scaling solutions to reduce congestion.
In simple words, polkadot as a decentralized application would have a blockchain of its own, the parachains.
Polkadot can be defined as a “Layer Zero” protocol: parachains would be the actual layer 1 blockchains (like Bitcoin or Ethereum) running in parallel over a common backbone.
For a start, Polkadot will accept transaction for over 100 parachains.
Allocations will be made through auctions that will guarantee a slot for up to 96 weeks.
The next auction will be held on December 23, 2021, when six new parachains will be allocated.