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Crypto Terms:  Letter P
Jul 07, 2023 |
updated: Apr 02, 2024

What is Parachain?

Parachain Meaning:
Parachain - an application-based data structure that runs in parallel with other parachains on the Polkadot network.
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Let's find out Parachain meaning, definition in crypto, what is Parachain, and all other detailed facts.

Parachain is an application-based data structure (which could take a form of a blockchain) that runs on the Polkadot network in parallel with other parachains. Parachains are connected to Polkadot in a way that allows developers to create new, independent networks that are powered by the same framework as the main chain.

Substrate, a new-generation framework for developing blockchains with Web3 capability, which is also used to build and develop Polkadot and Kusama, supports the technology behind parachains.

Each parachain is connected to the main chain via the central Relay Chain, allowing them to operate independently without jeopardizing the network's integrity. Cross-Chain Message Passing (XCMP) allows the parachains to exchange messages with other parachains on the same Relay Chain. As it can have its own functionality, tokens, governance system, and other blockchain properties, parachain can be treated as a standard blockchain.

Since each parachain is linked via Relay Chain, it can still benefit from the Polkadot network's security and be backed by its validator architecture. To put it in another way, maintaining a parachain doesn’t require the creation of one's own validator community.

Validators are also assisted by collator nodes in securing parachains. Though collator nodes, unlike validators, do not secure the network. They keep track of all parachain data, choose new block candidates, and confirm the inputs and state of a parachain along with validators.

Note that the economics of parachains might differ from those of the broader Polkadot ecosystem. This means that they can charge various transaction fees based on the preferences of their own community.