Crypto has not only gained immense popularity this year, the technology behind blockchain has not gone unnoticed either.
Blockchain is a decentralized technology, in which crypto assets function. Some of the leading blockchains are the Bitcoin and Ethereum blockchains.
Along with technology, education and increasing needs, the blockchain world is growing and trying to solve problems on the blockchain in the past, especially regarding scalability, speed and increasing demand.
In overcoming that all parachain appears, what is parachain and how to understand parachain easily? Check out the following article.
Before we understand what parachain is, it is better if we understand about the public chain first.
Public chain refers to the blockchain in which anyone in the world can access the system to read data, send identifiable transactions, and compete for accounting processes at any time.
Public chains are often seen as "completely decentralized" because no individual or institution can control or destroy data.
Bitcoin is the first public chain in the world which has an independent wallet and blockchain browser, furthermore there is Ethereum which is the first public chain with smart contracts, therefore, Dapps is becoming an important part of the blockchain ecosystem.
Quoted from Hackernoon, parachain stands for parallel public chain, which is another form of public chain.
Users can build parachains according to the documents provided. Each parachain is an independent blockchain ecology, where developers can create their own independent wallets, browsers, DAPP, issue digital certificates, deploy super nodes.
At the same time, all data and consensus mechanisms are stored in the main chain while the execution process, including sign, send and broadcast, can be done parachain.
After the transaction is executed, the hash value of the last transaction needs to be recorded on the mainchain, therefore, the data on the mainchain is the most authoritative and complete. Parachain attaches to the main chain while working independently and building the entire blockchain network ecosystem.
Parachain is an individual blockchain running in parallel in the Polkadot ecosystem (Polkadot and Kusama network).
The Polkadot architecture consists of up to 100 parachains connected and secured by a central Relay Chain.
Parachains can interact and exchange data and assets with each other within the system, and can also connect to external networks such as Bitcoin and Ethereum using bridges. This flexibility overcomes the scalability, security, and interoperability issues that have hindered blockchain development so far.
Now let's take a look at the skydiving at work in Polkadot.
This chain is responsible for submitting, confirming and integrating transactions. So that the network can operate faster than other networks.
Relay Chain breaks this process down into 2 main things: adding new transactions and validating transactions. By doing this, the network can process up to 1,000 transactions per second based on multiple tests.
The existing chain at Polkadot is working on higher speeds to allow multiple blockchains to interact with each other.
The next chain will help explain how the network plans to allow other chains to communicate with each other. Then there is the Validator whose job it is to validate activities in the Polkadot relay chain.
Parachain itself is a simple customization blockchain. This customized blockchain was previously used to pass on the computing power of the chain to validate orders and transaction amounts.
Sane source companies want to have their own blockchain for storing data, but they don't want to create their own blockchain. Because of that they decided to use Polkadot.
There they inform that a sane source company wants to store corporate and client data using the Polkadot network, then set up a financial service to host the company's native applications.
In order for this to be done at Polkadot, the sane source company will buy a number of DOT tokens to bid for a certain number of bonds or bonds on a particular parachain offer.
If approved, the company can use the polkadot to meet the company's needs by utilizing the existing paratrooper facilities.
Parachain is managed by a network administrator known as a collator. The collator node's role is to defend the full node from parachains, store all necessary information from the parachains, and generate a new candidate block to be passed to the Relay Chain validator for verification and put in a state with Polkadot I.
The incentive for collator nodes is a detailed implementation of parachains. They are not required to observe Relay Chains or have DOT tokens unless this is required for parachain implementations.
The Parachain advantage
Ensuring the security of the entire blockchain network with a distributed distribution of nodes.
Each parachain is equal and independent, thus solving the congestion problem
Based on the underlying blockchain technology and the functions of the public chain, companies do not need to spend money on high-cost public chain construction and maintenance;
Parachain has a super node deployment function;
Can quickly develop and combine N types of DAPP, and can quickly issue N types of tokens;
Use the publicly licensed economic model of the public chain to help companies expand their business ecology and capture the Internet market;
Open source support code
Parachain Usage
Some of the current projects that have expressed interest in using parachain include being useful for:
Decentralized Finance (DeFi)
Game
Digital Wallets
Credentials
Identity Verification
Oracles (Feed Price)
Smart Contract
Internet for everything
That is the explanation of what Parachain is, from a technological point of view, it is indeed difficult to separate from Polkadot. The reason is, the name Parachain is closely related to Polkadot, which is currently booming.
Ultimately, all the evolution of the existing blockchain aims to fix the shortcomings of other blockchains, especially speed, scalability, and simplicity.
