A scalable, customizable, interconnected blockchain network that lets you specialize in any use case while still being compatible with the complete network and inter-operational benefits is something Polkadot’s parachains achieve. While doing so, they bring many benefits to blockchain technology in terms of performance, security, and scalability. Let’s understand these advantages in depth in this article.Â
Contents
What are parachains?
Parachains refers to custom, inter-compatible blockchains that are based on the Polkadot layer 0 protocol. These are individual layer-one blockchains that communicate with each other and can share tokens and other assets without needing to care about security and other implications. A single set of decentralized validators validates the transactions on parachains. This allows parachains to process multiple transactions simultaneously and spread transactions across the network.Â
The key benefit this architecture brings over layer two solutions like rollups is that the apps built using parachains don’t rely on the external blockchain or the limitations it has for smart contracts and underlying technology. With parachains, each DApp has full control over the underlying blockchain.
Giving it total control to optimize any aspect of the app. In this way, parachains create a unique ecosystem of interconnected blockchains that are highly specialized in what they do and still agree with each other on data transfer. This agreement is governed by a few key requirements by the Polkadot protocol. The primary or the sole technical requirement of being a parachain is that it must prove to the validators that every block that it generates follows the protocol.Â
With Parachains becoming increasingly popular, a lot of low-code Parachain development tools are now being built that are perfect for spinning up your own custom-fitted Parachain in a few clicks.
Now, let’s look at some of the important feats about Parachains:Â
Specialization in Parachains
The first, as we mentioned above, is specialization. It has been established multiple times that blockchains struggle with security, scalability, and decentralization. So, some projects emphasize security, some on decentralization, and some on speed. And having a framework that lets you choose the highlighting points becomes an advantage. Here, enter Parachains, which gives you the freedom to choose your specialization, creating an internet of blockchains.
Scalability in Parachains
The second thing is the scalability. With the parachain as the base, the blockchains scale on two levels. First, the interconnected parachain ecosystem scales horizontally. Hence, layer one itself is fast and highly efficient. But you can still build layer two solutions on top of it to further the scalability. Also, as already mentioned, transactions spread across the network; hence, parallel processing also significantly helps the throughput reach huge numbers.Â
Security in Parachains
The third important thing is the security. One might think that security will be compromised if many chains share data across the network and if anyone can join the network. But that’s not the case. Parachains, by virtue of being connected to the parachain ecosystem, derive best-in-class security. This is due to the feature called Shared Security that parachains offer. The central chain of Polkadot called the Relay Chain, comes into play to ensure a high degree of security. The validators for the relay chain are selected by a process called nominated proof of stake wherein DOT holders elect validators to secure the relay chain. This means that individual chains don’t need to worry about security concerns. The whole network is secured from the inside. By agreeing with the protocol and satisfying a few basic standards, the chain receives the security of the entire network.Â
As you can already tell, interoperability is another big change or benefit that parachains bring. It’s one of the core principles behind the creation and the working of the parachains model. Also known as Cross Chain Composability, the ability to interact with other blockchains makes the ecosystem holistic. Think of it like a transportation service. Without this, the two cities will be completely disconnected. But add a robust system, and now you have endless communication possibilities. If we extend the analogy, communication also works in favor of both cities and fosters development for both. The same happens with parachains. With parachains, the individual blockchains no longer remain isolated. They come together and help the entire ecosystem with the positive sum game.Â
Being able to transfer data across blockchains means that one blockchain can take advantage of the other’s specialized services. Or it can utilize many specialized services to create something new, unique, and world-class product that brings the best of all possible worlds.
Conclusion:
The interconnectedness that parachains bring comes with many advantages. Blockchains can be more specialized with parachains, can take advantage of the specialization of other blockchains, and scale better than alternatives without compromising security. The Polkadot protocol ensures security is maintained regardless of how many blockchains join the network.Â
Raksha, a seasoned journalist, specializes in crafting insightful narratives on blockchain and AI developments. With a keen eye for innovation, she distills complex topics into accessible stories, providing readers with a clear understanding of the dynamic intersection between these transformative technologies.
