What is Polkadot?
Polkadot is a Blockchain platform, or specifically a multi-chain technology , which is heterogeneous and highly scalable. Polkadot allows Blockchains to connect with each other to share data and form a decentralized network.
Polkadot’s vision is to create a “Decentralized Web” where our identities and data will be controlled by ourselves, not by a 3rd party like organization or government. some government.
Who is responsible for building Polkadot?
Basically, Polkadot is an open source project and anyone can freely contribute to the development of the platform. In addition to the open source community, standing behind Polkadot is the Web3 Foundation – one of the leading organizations in the Crypto space. The Web3 Foundation makes financial and technological contributions to Polkadot.
In addition, the Web3 Foundation is also working with groups interested in developing additional implementations on the platform such as:
- Core-Polkadot: Collator Nodes, Validator Nodes, Relay Chain.
- Ecosystem: Block Explorers, Node Explorers, Wallets.
Learn more Web3 and Web Foundation here.
How does Polkadot work?
Similar to Cosmos Network , Polkadot focuses on solving two main problems of Blockchain: Interoperability, Network Scalability and Adoption. Specifically:
- Limited Scalability: Bitcoin and Ethereum Example – the top two accepted blockchain singles. However, the average transaction speed per second on the network only stops at two numbers, while this number in VISA is 24,000 – 40,000. Is it possible for the majority of users to switch from VISA to Bitcoin or Ethereum Blockchain?
- Adoption: Blockchain in general is still new to the vast majority of users. It all needs to be simplified so that everyone can use it the way we use the Internet, as well as apply it to work and daily life.
- Low interoperability: Example: A owes B 1 Bitcoin, B wants A to repay in Bitcoin, but A only has ETH. The situation is imperative that A has to transfer ETH to the exchange to sell ETH and buy BTC, then transfer BTC to B… In fact, this process may be simpler, but it is still quite complicated, costly in time and money. .
Polkadot’s idea includes a Mainchain (Relay Chain), a solution to extend Layers 2 (Para Chain) and a bridge with other Blockchains (Bridges Chain). In there:
- Relaychain: Is Polkadot’s Central Chain, responsible for connecting Validates to Parachains. Specifically, the Validators (validators) will Stake DOT on Relaychain to protect the network, transactions including network administration. Transaction fees on Relay Chain will be higher than on Parachain.
- Parachain : Is a solution to scale the network of Polkadot. Fundamentally Parachain is not necessarily a Blockchain. It can be a Dapp (decentralized application) or a Data Structure (data structure), as long as it can provide proof that can be verified by the Validators assigned to that Para Chain. Most of the computations that happen on the entire Polkadot network will happen on Parachain.
- Parathread: Similar to Parachain but with a pay-as-you-go model. More savings for blockchains that don’t need a constant connection to the network.
- Bridges Chain: It can be envisioned as a bridge between Polkadot Network and other Blockchains, providing interoperability between networks.
You can see an overview image of Polkadot’s design (DOT) in the image below:
Salient features of Polkadot
Components of the Polkadot network
Polkadot’s network consists of 4 main components:
- Validators: Produce Relay Chain blocks, responsible for validating and adding new blocks to the Relay Chain.
- Collators: Monitor transactions happening on Parachain and send proof to Validators to maintain network security.
- Nominators: Nominate Validators, just like you delegate your shares to other Validators. When these Validators receive rewards from validating, adding new blocks, some of the rewards will be shared back to Nominator. This is similar to Delegate and DPoS.
- Fisherman: Monitor the network and report bad behavior to Validators. Collators and any parachain full node can perform the Fisherman role.
Here are some highlights of Polkadot:
On-chain governance system
This is basically Tezos is doing, which is Voting to vote on proposals to update the new Protocol.
Nominated Proof-of-Stake (NPoS) mechanism
NPoS is quite similar to DPoS, you will lock your DOT, delegate stakes to 1 Validator to confirm and add new blocks to the chain, then share the block reward.
The fundamental difference here is that the Validators will be randomly selected from qualified people and this will change several times per day.
The design of Parachain does not require it to be necessarily Blockchain. As long as it can provide verifiable proof by the Validators assigned to it. All Parachains connect to Relaychain via proof of stake on Relaychain, so the more Parachains there are, the more secure and secure the network will be.
Interactions on Parachains are processed in parallel, so transactions can be spread across Parachains, so that Polkadot Network can process more transactions at the same time.
Substrate can simply be understood as a framework to help you build Blockchain more easily.
Substrate is not part of Polkadot, but projects built with Substrate can run natively on Polkadot. You can use Substrate to build new Blockchains right now without waiting for Polkadot Launch Mainnet.
So projects can build against Substrate but may not run on Polkadot, but if a project says it will run on Polkadot which has nothing to do with Substrate then it is a scam.