Parachains

Overview

A parachain is a lightweight blockchain that connects to a main chain called a relay chain. Instead of managing its security, it relies on the relay chain for safety and validation. Parachains run side by side with the relay chain, so you get faster and smoother transactions.

You usually use parachains as blockchains, but they don’t have to be. Their design makes them scalable, and they let you connect to other parachains using the XCM format.

Key Roles

Validators

Validators ensure the security and accuracy of parachains by verifying their blocks. They check each block's Proof-of-Validity (PoV) and ensure the PoV remains accessible for a set period. Validators lock up their funds on the network. If they act maliciously, part or all of these funds can be taken away.

Collators

Parachains rely on Collators to keep things running. Collators store your parachain data, create new blocks, and send those blocks to the relay chain for validation. They’re critical for the network but don’t always need to stake tokens on the relay chain unless your parachain requires it.

Parachain Protocol

The parachain protocol operates in two main phases:

  1. Inclusion Pipeline
    1. Step 1: Collators create parachain blocks (parablocks) and attach the Proof-of-Validity (PoV).
    2. Step 2: Collators send the parablocks to Validators.
    3. Step 3: Validators check the parablocks to ensure they follow the parachain’s rules.
    4. Step 4: Validators sign statements to approve or reject the block.
    5. Step 5: If enough positive statements are collected, the block is backed and added to the relay chain, but it still awaits final approval.
  2. Approval Process
    1. Step 6: Validators perform additional checks on the backed parablocks.
    2. Step 7: If all checks pass, the block is officially approved.

Why Use Parachains?

Parachains solve two problems with blockchains:

  • One blockchain trying to do everything slows things down. With parachains, different chains can focus on their specific jobs without getting in each other’s way.
  • Parachains are built for specific tasks, optimizing performance and enabling seamless collaboration across the network.

What Can Parachains Do?

  • Private Chains: Keep your data hidden from the public while enabling trusted interactions using XCMP.
  • Fast Transaction Chains: Process many transactions quickly by optimizing or making trade-offs.
  • Privacy Chains: Use advanced cryptography to protect your users’ data.
  • Smart Contract Chains: Add custom apps and logic using smart contracts to solve specific problems.

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References

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