Blockchain development is setting a benchmark for every upcoming technology and bringing a revolution to the digital world. Now to support the growth of web 3.0 and decentralized systems, the blockchain named Polkadot has designed its Parachain model. The model allows many solo chains to connect to the Polkadot Relay chain. It is by gaining a Parachain slot and employing a heterogeneous multi-chain approach.
The referring of Parachain is the internal component of the Polkadot ecosystem and is an interoperable blockchain that connects various blockchains. Also, the Parachain runs parallel to the Polkadot relay chain, taking it from its name Parachain (Parallel chain). The parallel nature of Parachain enables it to process transactions in parallelize manner with the Polkadot and achieve its scalability. It is one of the prime benefits of becoming Polkadot Parachain. Moreover, there are some other benefits of Parachain, such that it can easily interact with other Parachains of Polkadot. Let us take a deep dive into the development of Parachain on Polkadot.
Let us consider Parachain as a Level-1 chain and connected to the Layer-0 relay chain of Polkadot. The relay chain working is as the center, and Parachain runs parallel to the relay chain. Also, the collector nodes maintain the Parachain, and the collector operates as the full node of the Parachain. It also handles all retaining essential information of the Parachain. To produce new block candidates that Parachains do and pass the delay to the Relay Chain validator for verification. The compilation of inclusion is in the shared state of Polkadot.
Although, we can say Parachain may have their native token and economics. They could have their stipulation around implementation, such as it can point out whether the colletor nodes need to stake. It is on their relay chain DOT. Also, from the native Parachain token, the incentivization of collector nodes is through inflation.
There is so much taking around Parachain because of its design they share with Polkadot’s cross-chain composability and interoperability. With the help of Parachain, they can send and receive any form of data or asset. Thereby, the capability of Parachain supports a host of new use cases and applications.
Also, read: DApp Development on Polkadot
There are some key benefits that Parachain offers:
Interoperability, the ability to interact with other blockchains, is one of the prime factors that define blockchain scalability. The Parachain can achieve Layer-1 interoperability itself if it is not, then the blockchain has to rely on the Layer-2 solution. Thus we can say Parachain has a more efficient and decentralized means to achieve salability.
Polkadot has given the most flexibility when there is a matter of modeling of Parachain. For the agreed-upon protocol, the mandate criteria imposed by Polkadot is that Parachain proves to the Polkadot validator. It is by each of its blocks followed the protocol. From this, we can say Parachain must follow the consensus of the relay chain. And due to the flexibility factor for Parachain development as a chain with its individualistic design.
The inherent acquisition of Polkadot cross-chain composability is one of the biggest addition of Parachain. Also, its Layer-1 blockchain can provide sovereignty and complete control to the blockchain community. It allows engaging in free trade with other Parachain and external networks. Moreover, exchanging only tokens is not Parachain facilitates. It facilitates any data type, verifiable credentials, off-chain information from oracle, and smart contract for leveraging Polkadot interoperability.
It is the prime benefit of Parachain that it can be free to adopt any governance model. Also, for implementing various on-chain governance systems, Parachain can integrate several pre-built modules. The on-chain governance mechanism decreases the likelihood of the hard forks of the Parachain.
Some things should always keep in mind before building a Polkadot Parachain.
Parachain with their communities, economics, governance, rules, treasuries, and relationship with the external chip exist as autonomous apps or networks. Also, for maintaining the economic policies within the Parachain network, thus the Parachain developers and its community are responsible.
There is always an association of cost with becoming a Parachain. Also, participating in the Parachain selection process and earning rewards for assisting the Polkadot network is growing value.
For developing Parachain, there is a set of tools used by developers, and this kit Parachain development consists.
If the interest of anyone for the Parachain-based project development, the first need is to run a Parachain on Polkadot. The foremost thing necessary is to lease a slot on the Relay chain. Through a Parachain slot auction, there is a Slot offering for lease. It is where bidding is for interested parties for the slot by using DOT as a Parachain native token. Also, for a minimum of six months, to a maximum of two years, making a lease-out Parachain Slot on Polkadot is available for the concerned team.
Moreover, to participate in a Parachain slot auction, the interested parties need to lock up the amount of DOT. It has bided for the interval of their chosen lease period. The entire lease amount gets unlocked once the lease period is over. Also, the reservation of the DOT amount is in the bidder’s original account during the last period, and uses cannot be for staking, transferring, or any other use.
There are many benefits to becoming Parachain, such as sharing the security with other chains, on-chain governance, scalability, and interoperability. It needs to consider whether developing blockchains to become Parachain is the possible and appropriate choice for the project.
If you want to build a project based on Polkadot Parachain, we are the right choice for you. Please feel free to connect with our blockchain development experts.