{"id":10640,"date":"2023-01-18T15:35:57","date_gmt":"2023-01-18T15:35:57","guid":{"rendered":"https:\/\/www.bitnovo.com\/blog\/?p=10640"},"modified":"2022-05-17T11:32:26","modified_gmt":"2022-05-17T11:32:26","slug":"what-is-a-parachain-and-how-does-it-work","status":"publish","type":"post","link":"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-parachain-and-how-does-it-work","title":{"rendered":"What is a Parachain and how does it work?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Alternar tabla de contenidos\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-parachain-and-how-does-it-work\/#how_does_a_parachain_work\" >How does a Parachain work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-parachain-and-how-does-it-work\/#parachains_in_polkadot\" >Parachains in Polkadot<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span><p>Maybe you have ever heard about\u00a0<strong>Parachains<\/strong>. In the world of cryptocurrencies there are more and more changes, especially in the blockchain<strong>\u00a0software<\/strong>. These changes are usually highly complex, however, today we will tell you all about one of them in an\u00a0<strong>easy<\/strong>\u00a0and simple way.<\/p>\n<p>Most changes to blockchains are made with the goal of making a network\u00a0<strong>faster and more efficient<\/strong>. One example of these changes is parachains. This concept is relatively new and although it is being implemented in more and more\u00a0<strong>projects<\/strong>, many users are unaware of its\u00a0<strong>purpose<\/strong>\u00a0and\u00a0<strong>usefulness<\/strong>.<\/p>\n<p>In this article we will see how a parachain works and which are the most important ones.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"how_does_a_parachain_work\"><\/span><strong>How does a Parachain work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<p>In a nutshell, the concept of parachain refers to a\u00a0<strong>secondary<\/strong>\u00a0blockchain network. This secondary network is<strong>\u00a0integrated<\/strong>\u00a0into the main\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-blockchain-and-how-does-it-work\/\">blockchain<\/a>\u00a0network or relaychain. It should be noted that\u00a0<strong>not all blockchain networks support the integration<\/strong>\u00a0of a parachain. So far only Polkadot\u2019s test network, Kusama, supports this\u00a0<strong>new implementation<\/strong>. It is expected that soon Polkadot\u2019s blockchain will start implementing parachains as well.<b><\/b><\/p>\n<p>To understand the concept we will start with a\u00a0<strong>brief description<\/strong>. Parachains are blockchain networks located inside other networks that users support through\u00a0<strong>auctions<\/strong>\u00a0and receive rewards for them. At first glance it is difficult to understand. But we will explain the concept\u00a0<strong>step by step<\/strong>.<\/p>\n<p>The question most users ask is: What is the point of implementing a\u00a0<strong>second network<\/strong>\u00a0on a network that already fulfills the main function? The implementation of parachains does make sense and that is to\u00a0<strong>turn<\/strong>\u00a0the main network into a kind of\u00a0<strong>Internet of blockchains<\/strong>. This Internet of blockchains allows the network programmers to develop their\u00a0<strong>own systems<\/strong>\u00a0by relying on a larger network with greater capacity.<b><\/b><\/p>\n<p>This innovation opens the way for\u00a0<strong>new projects<\/strong>\u00a0and the development of applications within the new blockchain networks. An example of this could be\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/cex-and-dex-what-are-the-differences\/\">decentralized exchanges<\/a>\u00a0or other projects included in the\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-defi-o-decentralized-finance\/\">DeFi<\/a>\u00a0world.<b><\/b><\/p>\n<p>The importance of parachains for non-programming users is also notable. This importance stems from the way in which parachains are\u00a0<strong>created<\/strong>. To better understand their importance, let\u2019s look at the example of the Kusama network.<\/p>\n<p><b>\u00a0<\/b><\/p>\n<p><a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-kusama-ksm\/\">Kusama<\/a>\u00a0<strong>makes available to developers<\/strong>\u00a0what we would call \u201c<strong>slots<\/strong>\u201d for parachains. The mechanism is simple: developers submit their projects to fill these \u201cslots\u201d and KSM holders (the Kusama token) choose which project to support with their Kusamas.<b><\/b><\/p>\n<p>Clearly their support comes from the Kusamas owned by the owners. Through them, the\u00a0<strong>auction<\/strong>\u00a0of the \u201chole\u201d for such parachain is supported.<\/p>\n<p>In the event that the slot is<strong>\u00a0won through the auction<\/strong>, not only are the invested Kusamas\u00a0<strong>returned<\/strong>\u00a0to the owners, but also all those users who supported the project and made the\u00a0<strong>developer<\/strong>\u00a0win the auction are\u00a0<strong>rewarded<\/strong>.<b><\/b><\/p>\n<p>Although this concept is relatively new in the digital world, there are currently\u00a0<strong>exchanges<\/strong>\u00a0that offer their users the possibility of depositing coins for parachain auctions, such as\u00a0<strong>Kala or Karura<\/strong>. As we said before, the next network to launch its own\u00a0<strong>parachain<\/strong>\u00a0auctions is expected to be Polkadot.<\/p>\n<p><b>\u00a0<\/b><\/p>\n<p>So far we understand that the\u00a0<strong>usefulness<\/strong>\u00a0of parachains is to allow users of a cryptocurrency to<strong>\u00a0support individual projects<\/strong>\u00a0of different developers that they consider promising. In the event that the projects\u00a0<strong>win<\/strong>\u00a0the auctions, the users who initially supported the project<strong>\u00a0will be rewarded for their work<\/strong>. All this facilitates a higher economic return on the cryptocurrency network\u00a0<strong>without the need to sell cryptocurrencies.<\/strong><\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>&nbsp;<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div id=\"image_783791253\" class=\"img has-hover x md-x lg-x y md-y lg-y\">\n<div class=\"img-inner dark\"><img fetchpriority=\"high\" decoding=\"async\" class=\"attachment-large size-large lazyloaded\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Qu%C3%A9-es-Parachain3.jpg\" sizes=\"(max-width: 768px) 100vw, 768px\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Qu\u00e9-es-Parachain3.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Qu\u00e9-es-Parachain3-300x205.jpg 300w\" alt=\"Qu\u00e9-es-Parachain\" width=\"768\" height=\"526\" data-srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Qu\u00e9-es-Parachain3.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Qu\u00e9-es-Parachain3-300x205.jpg 300w\" data-src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Qu\u00e9-es-Parachain3.jpg\" data-sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n<\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>&nbsp;<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"parachains_in_polkadot\"><\/span><strong>Parachains in Polkadot<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>As a general rule, blockchain-based projects are oriented to meet objectives such as\u00a0<strong>security, scalability and decentralization.<\/strong>\u00a0It is extremely difficult to achieve the fulfillment of these three characteristics, however,\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-polkadot-dot\/\">Polkadot<\/a>\u00a0is one of the projects that works every day to achieve it.<\/p>\n<p>Polkadot employs a\u00a0<strong>multi chain<\/strong>\u00a0technology in its operation that allows the improvement of the operation between blockchains. Thanks to this technology,\u00a0<strong>different blockchains<\/strong>\u00a0can operate with each other efficiently, taking a step forward in\u00a0<strong>decentralization<\/strong>.<\/p>\n<p>Among the possibilities offered by this project is to\u00a0<strong>allow<\/strong>\u00a0its decentralized ecosystem to\u00a0<strong>expand and allow the development<\/strong>\u00a0of other projects on the advantages of projects already launched and advanced. All these advantages are difficult to find in other projects and this is because the Polkadot network presents a\u00a0<strong>feature<\/strong>\u00a0that so far, is not developed in most blockchains: the aforementioned\u00a0<strong>parachains.<\/strong><\/p>\n<p>This makes the network structure one of the most\u00a0<strong>complex<\/strong>\u00a0compared to the average. The parachains part of the project consists of<strong>\u00a0parallelizable chains<\/strong>\u00a0that are part of the Polkadot structure.<\/p>\n<p>These parallel blockchain networks\u00a0<strong>adhere<\/strong>\u00a0to the security provided by the central transmission chain or what we would call \u201c<strong>Relay chain<\/strong>\u201d so it does not provide security of its own.<\/p>\n<p>Such parachains are\u00a0<strong>customizable<\/strong>. This feature means that the owner of a parachain can decide how to shape the structure of the network\u00a0<strong>to best suit<\/strong>\u00a0the application he wants to develop. In addition, he can also control the\u00a0<strong>governance<\/strong>\u00a0of such a network.<\/p>\n<p>The fact that the parachain is inside Polkadot makes it possible to\u00a0<strong>distribute transactions<\/strong>\u00a0between different blockchains. In other words, it allows to parallelize transactions achieving greater\u00a0<strong>scalability<\/strong>.<\/p>\n<p>If you want to learn more about the\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-polkadot-dot\/\">Polkadot<\/a>\u00a0network, on this very blog, we recommend a very detailed article about the project that will help you understand it better. We have even created a specific article on\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/how-to-mine-polkadot-dot\/\">how to mine Polkadot<\/a>\u00a0to earn DOT tokens.<\/p>\n<p>See you next time.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span>Maybe you have ever heard about\u00a0Parachains. In the world of cryptocurrencies there are more and more changes, especially in the blockchain\u00a0software. These changes are usually highly complex, however, today we will tell you all about one of them in an\u00a0easy\u00a0and simple way. Most changes to blockchains are made with the goal of making a network\u00a0faster [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":7824,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[185],"tags":[],"class_list":["post-10640","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-en"],"_links":{"self":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/10640","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/comments?post=10640"}],"version-history":[{"count":0,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/10640\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media\/7824"}],"wp:attachment":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media?parent=10640"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/categories?post=10640"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/tags?post=10640"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}