What is Polkadot and how does it work?

Diving into one of web3’s most popular blockchain networks

“The future is inevitably multichain.” That’s a phrase that has been said more and more in the web3 space.??

What do you think? Do you agree? If you do so, then you should start learning about the different blockchain networks, as many of them will play a critical role in the decentralized future.

In this article, we’ll dive into the specifics of Polkadot: a major player in the web3 ecosystem and one of the most popular networks in the space.

Starting with the basics: What is Polkadot?

Polkadot is a decentralized network protocol that enables the interoperability of multiple independent blockchains. It allows for the transfer of data and value between these blockchains, enabling them to work together in a cohesive manner.

In other words, think of Polkadot as a “blockchain of blockchains.” A network that enables several other blockchains, called “parachains” to communicate between one another.?

Polkadot serves the purpose of enabling a decentralized, open web where users have the ability to build and deploy their own decentralized applications (dApps) and blockchain solutions without being constrained by the limitations of one single blockchain.

To ensure these capabilities, Polkadot runs on a unique architecture consisting of many different aspects, all playing a critical role in the correct functioning of the network. Let’s dive into each one of them.

Polkadot’s unique architecture

Polkadot is inherently different from most blockchain networks, as it has to support multiple interconnected blockchains.?

To that purposes, Polkadot supports different layers of blockchain networks and infrastructure, including:

• A relay chain: This is the central backbone of the Polkadot network. It is responsible for coordinating and facilitating the operation of the other components of the network, including the parachains, parathreads, and bridges. If you think of Polkadot as a pearl necklace, the relay chain would be the string holding them all together.
• Parachains: These are sovereign, independent blockchains that are connected to the Polkadot network. They can be customized to meet the specific needs of different dApps and use cases. Any project developer or entrepreneur can bid to occupy a parachain slot on Polkadot. In the pearl necklace example, Parachains would be like the pearls, all connected by the relay chain.
• Parathreads: These are lightweight versions of parachains. They are designed for lower-cost and lower-throughput use cases, and are optimum for projects that don’t need a permanent connectivity to the network. They can be upgraded to full parachains if or when necessary. They could be seen as smaller pearls or beads in the necklace, that can be replaced by larger ones at any time.
• Bridges: Just like other regular blockchain bridges, these enable the interoperability of Polkadot and its parachains with other external blockchains.

In order for these different components to work together, the relay chain must first allocate "slots'' for them to use. These slots represent a certain amount of capacity on the relay chain that can be used by a parachain or parathread to process transactions and store data. Once a slot has been allocated, the parachain or parathread can begin operating on the network for a maximum of 96 weeks. Once the time is due, the parachain needs to participate in a new bid and win it to remain connected to the relay chain.

The relay chain also serves as a central point of communication between the different parachains and parathreads, allowing them to send messages to each other and to the relay chain itself. This enables the various components of the Polkadot network to work together in a cohesive manner, enabling the transfer of data and value between them.

NPoS: How does Polkadot achieve consensus?

The consensus mechanism of Polkadot is based on a variation of proof-of-stake (PoS) called “Nominated proof-of-stake" (NPoS).

In the NPoS process, validators on the network are chosen through a process called "nomination." Any member of the Polkadot community can nominate themselves or others as validators, and these nominations are then voted on by other members of the community. The validators with the most votes are chosen to participate in the block production process.

Once a validator has been nominated, they must stake a certain amount of the native Polkadot token (DOT) as collateral in order to participate in the block production process. This serves to incentivize validators to act in the best interests of the network and to ensure the security and integrity of the blockchain.

In the NPoS process, validators propose blocks that they believe should be added to the chain, and other validators vote on these proposals. The proposals with the most votes are added to the chain, and the validators who proposed them are rewarded with a portion of the transaction fees.?

Compared to the classical PoS, NPoS uses less energy and is more decentralized, as it distributes the work across several validators to prevent those with only large amounts in their wallet to outperform smaller-balance users, and thus also saves computing power.

Overall, the NPoS consensus mechanism is designed to be secure, decentralized, and efficient, ensuring the integrity and stability of the Polkadot network.

Closing thoughts about Polkadot

Polkadot isn’t simply a smart contract platform where developers can build and deploy their own dApps. It’s an entire multichain network providing critical infrastructure for the web3 and cryptocurrency ecosystem.

Thanks to its innovative architecture, any project can deploy its own, sovereign blockchain network on top of Polkadot’s systems, leveraging its technology and network effect for maximum interoperability, connectivity, and reach; while also profiting from its security and community.

If you’re a developer, entrepreneur, or even a crypto enthusiast looking to start a new project, you might want to dive deeper into this unique technology. Who knows? Maybe your project ends up securing the next parachain slot.