Polkadot announces Parachains for interoperability

Karthik Subramanian

Polkadot, one of the blockchain startups working to make blockchain technology more practical and accessible, has announced a major step towards blockchain interoperability with the introduction of parachains.

Blockchain interoperability is one of the biggest challenges facing the industry at the moment, especially with the proliferation of many new blockchains over the last couple of years.

Problems with Interoperability

This has led to the locking of users into specific blockchains and the assets are locked there as well. It is also a challenge for the developers as they can build their app only on one blockchain and then they would need to build another version in a different blockchain and with many blockchains being available now, the problem has been compounding over the last 2 years. No team has been able to resolve this issue fully which is why it continues to be a challenge for everyone involved.

Polkadot has been emerging as a strong contender to solve this issue and one of the ways that they are looking to do this is by parachains. This is a product that contains multiple blockchains which can communicate with each other and all of these chains are contained within the Polkadot ecosystem. Slots will be released on the main chain and these can be rented by various teams for 96 weeks at a time.

Diverse Network of Chains

“No single blockchain design works optimally for every use case. Each chain comes with trade-offs making it good for some applications and not others. The para chain model was created with the belief that the future of Web 3 will involve many different types of blockchains working together. Just as the current version of the internet caters to different needs, blockchains need to be able to provide a variety of services. Parachains solve this,” said Dr. Gavin Wood, co-founder of Polkadot.

It is reported that it will offer 100 such slots with more slots being released in the coming months and these slots would be made available for development teams through an auction. The network hopes that as these parachains get rented by more teams and they start building on these chains’ various diverse applications, the network would then be able to build a decentralised network of chains that communicate freely with each other and where data and assets can flow in a free manner.

Read this next

Retail FX

Lion launches multi-currency trading accounts powered by AI

The core advantages of multi-currency trading account services include enabling significant cost savings and higher efficiency for investors.

Inside View, Interviews

Interview: Stanislav Bunimovich on Finalto’s white label solution

To explore what makes Finalto’s white-label solutions stand out in such an incredibly competitive market, Finalto sat down with its Chief Operating Officer, Stanislav Bunimovich, for an interview. 

Digital Assets

Talos acquired Cloudwall for a better portfolio management system

Cloudwall’s additional expertise in portfolio risk systems further positions Talos at the forefront of portfolio management systems across spot, futures, perps, and options.

Digital Assets

Bybit’s Bitcoin market share explodes, up by 400%

“This milestone is a testament to our sharp trading products and the loyalty of our users. As the industry evolves, Bybit remains at the forefront, ready to set new standards in the crypto trading world.”

Crypto Insider

Why Self-Custody is the Key to Secure Crypto Trading

Crypto trading is fast gaining popularity; as of writing, the total market capitalization stands at $2.3 trillion, double what it was at the onset of the 2021 bull market.

Industry News

UK FCA sues Lee Steven Maggs for FX scam Kube Trading

‘Kube Trading’ allegedly received around £2.67 million for FX trading and concealed significant losses from investors.

Market News

AUD/USD Soars Following Inflation Report

Australia’s CPI surge hints at prolonged tight monetary policy. Watch the Aussie dollar as US economic data looms.

Institutional FX

GCEX reports drop in turnover in 2023 due to crypto winter

“The crypto winter had a huge impact across the industry, and GCEX was no exception. However, in response to the decline in revenue, we have been resilient and adaptive, navigating our costs effectively and diversifying revenue streams such as introducing staking services for institutional and professional clients.”

Institutional FX

FxGrow taps Integral’s SaaS brokerage workflow

“FxGrow’s decision to partner with us is indicative of the growing advantage for brokers to leverage tier-one institutional-grade technology while maintaining control over their own platform. Integral is well-positioned to provide the SaaS solutions that will enable these businesses to better compete in the market.”

<