Bitgreen, a platform that connects Web3 and decentralized finance, has emerged as the winner of Polkadots’ 29th parachain auction, which will allow it to take advantage of the network architecture via a central chain called the “Relay Chain”, according to the tweet published by Polkadots official Twitter platform on Thursday 12 October.
Congratulations to @Bitgreen_ on winning Polkadot's 29th parachain auction!
Bitgreen is building a permissionless blockchain to bring together DeFi & Web3, with a focus on green projects, renewable energy tech, microfinance & impact investing. pic.twitter.com/XCkRD3gVC3
— Polkadot (@Polkadot) October 12, 2022
As a result of this milestone, the Bitgreen blockchain will function as a parachain running in parallel within Polkadot and enjoy all the associated benefits.
It will independently specialize through “heterogeneous sharding” for a period of 96 weeks, executing the unique cases it was designed for. However, it must outperform other competing upcoming blockchains to renew its spot on Polkadot after the lease expires.
Due to this development, Bitgreen has to lock a bond in DOT for the entire lease period. The DOT tokens locked on the Polkadot blockchain will be released at the end of the lease as it is considered an opportunity cost to use the tokens for other engagements.
Bitgreen emerging as the winner of the 29th parachain auction comes as no surprise, as the platform team has been working tirelessly over the past few months to build an application-specific parachain geared towards sustainability and compliance with green finance on blockchains.
It aims to promote structured financial activities that ensure a better outcome for the environment since carbon emissions from various financial activities, especially those associated with the proof-of-work system used to validate transactions, are not environmentally friendly and contribute to global warming.
In the video submitted by the network for Polkadot 29th parachain auction, Bitgreen CEO Adam Carver stated that they intend to develop an application-specific chain that promotes sustainable finance and uses governance, including tokenomics, to incentivize and motivate the type of Real-world behavior that bridges the gaps. He added that:
we have developed a few different apps that are kind of like starter apps just to get the ecosystem rolling; those include a technical framework for onboarding and financing tokenized carbon credit projects as well as a compliant debt market for green financing.