When Gavin Wood co-founded Ethereum, he said it would “allow people to interact in a mutually beneficial way without relying on each other.” In theory, such a platform would pave the way for Web3, characterized by a decentralized or distributed network architecture, which would lay the groundwork for a truly open internet, where we would have to blindly hand over our data to monopolistic corporations or get permission from them. would not need to be done. order to participate.
However, since its inception in 2015, Ethereum has failed to adapt fast enough and keep up with the pace. Transaction costs for decentralized applications (DApps) are very high, while transaction speeds are very slow. Wood left the Ethereum team in 2016 and founded the framework for a decentralized Web3: Polkadot.
With its series of Parachain auctions starting to turn heads, Blockchain’s Blockchain is kicking off a very exciting year with the launch of its Canary Network, Kusama. Kusama’s motto is “Expect Chaos”. And, looking back, it is clear that the expected chaos of the network during its parachain auctions set the stage for a strong Polkadot foundation and an eventual decentralized Web3 in the years to come.
related: What Are Parachins: A Guide to the Polkadot and Kusama Parachins
polka dot
The ability to communicate is part of what differentiates Polkadot from Ethereum and other blockchains. Polkadot’s emphasis on parachains, formally a parallel chain, is a driver in advancing one of the core principles behind Web3 Forward: the ability to communicate between different systems. Within the ecosystem, parachains run in parallel and Polkadot’s cross-chain composability allows any type of data to be sent between them, opening up possibilities for new use cases. Thanks to the cross-network bridge, Parachain can also be connected to external networks such as Bitcoin, Ethereum and others. By this token, Parachains are unique, independent and designed for the specific needs of the blockchain, unlike Ethereum’s shards, which are similar by design and less adaptable.
related: Building Multichain is a New Requirement for DeFi Products
Essentially, Polkadot is built around a relay chain – Polkadot’s central chain – that ensures interoperability between other blockchains in the network, allowing developers to securely build their own private blockchains. While the current relay chain processes transfers, implements governance protocols and provides staking services for the Polkadot network, an upcoming series of Parachains is expected to provide enhanced features including improved functionality and cross-chain compatibility.
If the relay chain represents the cosmic hub, then parachains are essentially Polkadot’s spokes. Each parachain is a blockchain capable of running its own consensus algorithm, utilities, tokens, etc. Since the relay chain does not support smart contracts or other specific features, those responsibilities are passed on to parachains.
It is worth noting that Parachains are not bound by any rules except that they are reliably valid. Polkadot limits the number of parachains to 100 – a hard limit creating competition among projects hoping to connect to Polkadot. To connect, a potential Parachain has to outperform other projects and win a Parachain slot auction. Once a Parachain wins a slot, it bonds Polkadot (DOT) tokens to pay for its slot lease (Parachain slots are never sold, only leased). If these auctions seem complicated or perhaps vague, it is because parachain slots are rare and Polkadot intends to prioritize serious and high quality projects.
related: How Liquid Staking on Polkadot Disrupts Parachain Auctions
Kusma
Officially speaking, Kusama is a network created for its cousin Polkadot as a “fast-moving canary in a coal mine”. As Kusama says:
“It is a living platform designed for change agents to take back control, spark innovation and disrupt the status quo.”
The network billed itself as allowing for the most realistic testing environment for blockchain projects, and you’d be forgiven for considering Kusama to be some sort of doppelganger as it has a nearly identical architecture to Polkadot apart from the ability for rapid upgrades. and structure. The network has been used not only to test innovation and change for Parachain candidates, but also as a proof of concept for Polkadot’s Sharp model.
For Kusama, the auction has proved to be key to its scalable multichain architecture, where parachains connect to the network by leasing a slot on the relay chain through an unlicensed auction. When Polkadot initially reported the launch of its Parachain auction, it noted how Kusama has successfully completed 11 Parachain auctions since they started in June. Since then, over 2.4 million Kusama tokens have been contributed by over 49,000 unique addresses, indicating some significant community interest.
Furthermore, the fact that there were no technical issues throughout the Parachain auctions proved to boost Polkadot’s preparations for its own auction. It is becoming clear that a gradual rollout is central to Polkadot’s success, with the total number of parachains on Polkadot not exceeding 75 percent of those running on Kusama in a bid for quality over quantity. Kusama’s success undeniably indicates a bright future for Polkadot.
related: How much conspiracy is behind Kusma’s parachain auctions?
The path towards a decentralized Internet begins with Parachain Auctions, starting with Kusama. Web3 is focused on returning control of the Internet to users and that is exactly what is happening with Parachain Auctions where everyone is free to participate. Polkadot’s ongoing Parachain auction is bound to pass the rigorous testing on Kusama and will ensure a decentralized Web 3 by linking different blockchains together. The future is likely to see Kusama linking Polkadot for cross-network interoperability – the ultimate realization of Web 3.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.
The views, opinions and opinions expressed here are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
James Wu is a seasoned entrepreneur and investor in the digital asset space, having founded Digital Finance Group in 2015, where he oversees over $1 billion in assets under management. He is an early investor in companies like LedgerX, Coinlist, Circle, 3iQ. James Polkadot and Kusama are also early investors and supporters of the network. It makes a significant contribution to the ecosystem through capital allocation, donations, and actively supporting Parachain Auctions. Additionally, James serves as a member of the Board and Committee of the Chamber of Digital Commerce and as Chairman of the UAE Licensed Matrix Exchange.
