BlockChain | A Blockchain Network Enabled By Polkadot
Scale
In isolation, blockchains can only process a limited amount of traffic. As a multichain network, Polkadot can process many transactions on several chains simultaneously, removing the bottlenecks associated with legacy networks that processed transactions one at a time. Parallel processing improves scalability and creates the right conditions for future adoption and growth. Due to the fact that they run parallel on the network, sharded chains connected to Polkadot are called “parachains.”.
Do you remember all the discussions in the BTC community that led to the creation of Bitcoin Cash and the still “hated” Lightning Network? Is Ethereum getting insanely expensive for transactions? All of those issues are caused by scaling problems that 1st and 2nd generation blockchains have.
The scaling issues in most blockchains are related to the fact that each node has to process all transactions one by one. Parachains, in contrast to Polkadot, get their name from the fact that their blocks are produced simultaneous to transaction validation; this substantially speeds up the network. Based on the last benchmark, even a simple implementation without parachains can reach 1000 transactions per second. However, we can possibly reach 1,000,000 tx/s after parachains are fully operational.
Specialize
One size does not fit all when it comes to blockchain architecture. Various blockchains make tradeoffs to support different features and use cases. An identity management chain might optimize for file storage, while another might optimize for identity management. Each Polkadot blockchain can be optimized for a specific use case. So blockchains can offer better services, as well as improve efficiency and security by eliminating unnecessary code. Teams can build and customize their blockchains more quickly and efficiently with Substrate’s development framework.
The majority of blockchains are trying to support various features, and all of them have to make some trade-offs in order to do this. But with Polkadot, it’s very easy to deploy one chain that will serve as file storage, another chain that will serve as decentralized identity management, and another that will enable payments throughout the ecosystem by creating a stable coin. Â A specialized blockchain could be simple, easy, and secure because it can eliminate all the code usually required for a full-featured chain.
As an extra feature, Polkadot provides Substrate, a simple SDK (Software Development Kit) that simplifies the creation and deployment of Parachains. No more writing code from scratch!
Work together
In Polkadot, networks and applications can share information and functionality like apps on a smartphone, without relying on centralized service providers. Polkadot offers interoperability and cross-chain communication, unlike previous networks. Users will be able to transfer information between chains and gain access to innovative new services. For instance, a chain providing financial services can communicate with another chain that provides access to real-world data (known as an oracle chain), such as stock market feeds for tokenized equity trading.
As applications on a smartphone share underlying features of the operating system, so can parachains and bridges. Â Polkadot offers the advantage of being able to communicate among the parachains, rather than running them in isolation. Not just by simple token transfers, but by exchanging any kind of message. If a chain is trading synthetic assets (lets stick with stocks and commodities), it can ask the oracle in a different chain about stock prices.
Parachains can send any type of message using the Cross-Chain Messaging Protocol (XCMP).
Self-govern
Polkadot’s communities make decisions about their networks and have a transparent stake in Polkadot’s future governance. Using pre-built modules, teams can experiment with new ideas, and customize and optimize the blockchain’s governance. Blockchain governance models can be improved and upgraded over time as needs and conditions change.
Polkadot’s community can manage the network completely decentralized. Â Our article How Polkadot token denomination can affect trading provides an example of how such a voting process can affect trading.
Polkadot in the future will be completely run by the community in a transparent manner as the process of enabling complete governance is still in progress. Afterward, the community can decide the number of slots and how parachain actions are done and basically experiment with whatever ideas they have. The governance itself can be improved with time, which makes Polkadot one of the most flexible networks available.
Upgrade easily
To stay relevant and improve over time, blockchains need to be updated. Updating conventional chains, however, requires “hard forks”, which create two separate transaction histories that can splinter a community in half and often take months to finish. With Polkadot, blockchains can evolve and adapt easily as new technology is developed.
Together, these features open up a world of possibilities for new services that give people control over their digital lives again. Many teams are already developing Polkadot solutions for a range of applications, including finance, gaming, digital identity, IoT, supply chain management, social networking, and cloud technologies. Polkadot’s parent organization, the Web3 Foundation, supports many of these teams with grants and technical support, ranging from low-level infrastructure and ecosystem components like wallets, parachains, bridges, and tooling, to projects at all levels of the technology stack.
A blockchain must be updated, either for security reasons (bugs will always find their way into your code) or when a new feature is proposed by the community. Hardforks are normally required by most blockchains when making significant changes to the network (like a consensus protocol upgrade). In some cases, this process can be difficult for the community and even lead to the split of the network, as in the case of Bitcoin Cash.
Polkadot allows parachains and its own network to update in a completely seamless manner without any hardforks, allowing for gradual refinement of the network.
As we connect all the dots (pun intended :)), it becomes clear that Polkadot takes a totally new approach to decentralized network development. The goal is not to build the whole world on top of one blockchain, but to provide a safe, trusted, easily deployable, and upgradable environment for everyone to use their chain and benefit from cooperation with the rest of the world.
