As a platform, Polkadot connects blockchain networks into one unified network. Moreover, there are connected chains known as Parachain. They create a vast network of chains that are all coordinated and secure. This forms the foundations of Web3.
The founder of Ethereum realized that it lacks scalability. Therefore, Dr. Gavin wood created Polkadot. Now, to understand Polkadot further, let us dissect its structure. Blockchains develop using a substrate, one of the most accessible and powerful Blockchain development frameworks for programmers. It looks like music EQ with dials to turn the settings up and down.
Parachain and how do they work?
The Parachain is a crucial part of the Polkadot ecosystem, and they run parallel to the relay chain. They are customized for various use cases and feed into the main Ethereum blockchain, the Relay Chain, which powers the Polkadot and Kusama systems. Therefore, parachain also get the benefits of a relay chain. The relay chain has features like shared security, payment settlements, etc.
Benefits of parachain
- Polkadot gives flexibility to parachain. There is only one condition that Polkadot para chain should abide. It must establish that they follow all the Polkadot protocols. Moreover, the flexibility allows the parachain to design and modify itself.
- One of the main reasons to create Polkadot was that it is scalable. Parachain achieve interoperability directly at layer 1, while other blockchains require layer-2 solutions.
- The Parachain software is free to adopt any governance model. It is also capable of integrating several pre-built modules to enable various on-chain governance systems.
Polka dot parachain auctions
The benefit of the network architecture is only realized if the parachain is connected to the Relay Chain. Hence, there must be a way to determine which parachain can connect to the Relay Chain and in what order. This is where parachain auctions can help.
The process to connect with relay chains is a parachain auction. It does not need permission, and the aim is to allot slots of parachain to projects. However, the slots are limited, and there is high competition between projects to secure a slot.
How does parachain auction work?
The auctions are highly random. There is no specific end time to it which increases the motivation to deliver the best project. Moreover, bids are higher and quick since the end time is not specified.
The schedule for Polkadot parachain auctions in 2021 is mentioned below.
- The first auction – 11th November – 18th November, and the winners will be announced on 18th November.
- Second auction- 18th November – 25th November. The winner announcement will be on 25th November.
- Third auction – 25th November – 2nd December. Winner announcement on 2nd December.
- Fourth auction – 2nd December – 9th December. Winner announcement on 9th December.
- Fifth auction – 9th December – 16th December. Winner announcement on 16th December.
Top Polkadot parachain projects
There are many Polkadot projects available. Here are some of the top projects on the Polkadot parachain.
- Kusama’s primary objective is to create an atmosphere for testing innovative or fast building projects. Moreover, to make a pre-check on start-ups before they are deployed on polka dot.
- Acala is one of the most desirable projects on polka dot. The Acala network aims to introduce Defi to the Polkadot ecosystem and have impressive technology. Moreover, Acala is most likely to secure a slot.
- Moonbeam is another successful project and compatible with Ethereum. It is one of the most anticipated projects on the Polkadot ecosystem. You can build decentralized apps which you can further connect to blockchains. Moonbeam is getting increased investors and is predicted to be successful.
- Centrifuge call is the basis for decentralized financial assets compatible with the Polkadot ecosystem. In this case, real-world assets can be converted into NFTs and used as collateral.
- Bit. The country is a much unique platform and created hype. Using this, you can create whole metaverses. Metaverse technology is at its peak right now and can be the new future of communication. Therefore, investors are very much interested in it.
- Phala network is the first privacy blockchain on Polkadot. Cloud computing has reached new heights with Phala Network. User privacy is the focus. Moreover, this exciting project uses Polkadot’s infrastructure for high-level security and offers smart contract interoperability and composability. Hence, it has an excellent chance to claim a slot.
- Edgeware is a project which focuses on the intelligent creation of contracts in the Polkadot ecosystem. The warranties are compiled in WASM and written in Rust. You can also vote, do funding on it, and can also perform self-improvement. Therefore, there are elevated expectations out of it.
- Shiden Network (formerly Plasm Network), a sister project of Astar Network (previously Plasm Network), won the third Kusama Parachain auction. Kusama App Hub is a layer-two decentralized app hub that acts as a Smart Contract platform.
- Bifrost connects other proof-of-stake blockchains to Polkadot by providing derivatives for staking. Bifrost is the first blockchain middleware to support multichain technology. It allows users to choose from different blockchain protocols, customize their networks, and swap blockchains as required.
- Subsocial is a free platform and marketplace where creators can assemble their social networks with complete monetization tools, data privacy, and censorship resistance. This project has gained more momentum due to its competition.
Implications of parachain
Parachain is an essential part of the Polkadot ecosystem. They have blockchains that are customizable and provide quite a lot of incentives for the network. Moreover, Parachain improve interoperability along with transactions that are fast and cheap. The customizable features allow you to create a blockchain with tokens and unique use cases.
Polkadot will experience an influx of projects, increasing adoption levels. The benefits of adopting Polkadot come from the fact that they will rely on Polkadot’s already existing infrastructure for security, thereby eliminating the need for their validator nodes.