Hello everyone! In the first part of my review, I gave a little background on blockchain compatibility, in particular, about what technologies currently exist, how they work, and why they are needed in principle. In the second part, I would like to look at some of the technologies on the market designed to increase interoperability between blockchains. Also, as an ordinary user and a novice developer, it is interesting for me to find out how existing projects differ from each other.
Polkadot is a network protocol that allows you to transfer data between different blockchains, such as Bitcoin and Ethereum, by combining them within a single multi-blockchain. Anyone can contribute to the codebase, run a node, or build services on Polkadot thanks to the 100% open-source code. The polkadot founder is Ethereum co-founder and first CTO Gavin Wood and his team has focused on security, scalability, and innovation Crypto.
Polkadot technology has identified key issues preventing blockchain technology from becoming a full-scale practical application, namely:
Scalability: Polkadot is a sharded multi-chain network, meaning it can process many transactions across multiple chains in parallel. This parallel processing power greatly improves scalability and sets the stage for ubiquity and future growth. The shard chains connected to Polkadot are called parachains Crypto because they operate in parallel.
Isolation: Blockchains remain discrete and independent, lacking two-way communication and interoperability.
Security: Polkadot offers extensive network management and configuration options for different Crypto projects. Polkadot allows you to optimize the design of each individual chain according to the specifics of its functions.
The structure of Polkadot consists of the following main components:
Relay Chain (connecting or relaying chain) is the main chain of Polkadot, connecting all individual blockchains (parachains) in the network.
Parachain (para chain, short for “parallelized chain”) are individual parallel blockchains that carry out transactions and transfer them to the original blockchain. Parachains build collators: they collect user transactions and confirm blocks based on the Proof-of-Validity algorithm (proof of validity). For their work, collators receive a reward, the amount of which depends on the particular para chain. The activity of collators is similar to the work of miners in blockchains with Proof-of-Work and Proof-of-Stake algorithms.
Bridge Chain (lit., “chain bridge”) – designed to connect blockchains that do not use Polkadot governance protocols (for example, Bitcoin, Ethereum, and Tezos blockchains).
Kusama is a para chain that grew into a separate Polkadot project in July 2019, which allows you to create parallel independent blockchains and combine them into a single network. Kusama has almost the same code and architecture as Polkadot, but it is easier and cheaper to run decentralized applications (dApps). For this reason, all Polkadot technologies and capabilities are tested at Kusama.