Get to know the DOT Parachain and how it works

The DOT and Kusama parachain prices are a sign of the start of parachain or the renewal of “leased” space on the respective networks. 

The DOT parachain transaction itself is a process of determining what will be associated with the use of the circular chain. For your information, Polkadot (DOT) and Kusama (KSM) are made with two types of blockchain, namely relay chain and parachain.

Blockchains is the main network where transactions are made whereas parachain is a special blockchain embedded in four chains. As of today, the Polkadot and Kusama blockchains can support 100 parachains.

So, what is the DOT parachain on the Polkadot network? To find the answer, please read in full below.

Get to know Parachains DOT

The DOT parachain is an auction held on the Polkadot or Kusama relay chain to determine which blockchain will connect to the parachain space. The auction period starts with every service on the network sending its contribution to the Polkadot and Kusama blockchains. 

Later, this technology would be sold in informal candle auctions, the method used to sell when in the 16th century the winner was the one who offered the highest price when the candle went out.

In principle, the sales process for Polkadot and Kusama is the same. Applicants will use two pieces of information, such as sales number and available space. In addition, the dealer service team also uses the DOT mark or markings KSM as a form of consent.

Users can build parachains according to the documents provided. Each Parachain is an independent blockchain creation, where developers can create their own wallet, browser, DAPP, issue digital certificates, and deploy supernodes.

At the same time, all data is stored in the verification process on the main chain while the execution processes including logging, sending and transmission can be carried out on the parachain.

After the transaction is completed, the hash value of the last transaction will be stored in the main chain. Therefore, the main data chain is reliable and complete. This technology is integrated with the mainchain to operate independently and build a blockchain network ecosystem.

Also read: 5 Advantages of Blockchain, Must Know!

How the DOT Parachain Network Works

After briefly understanding what parachain is, we will discuss how it works in the crypto world. Now, more services will be built into the Polkadot and Kusama networks. Both networks need their own parachain space to build.

However, instead of offering room for higher paying services. The Polkadot team will create a parachain marketplace as a method for efficiently sharing available space.

In this marketplace, DOT or KSM holders can invest their cryptocurrencies to support the jobs they believe should be accepted in the space.

In return, the project will provide prizes in the form of token airdrops or other prizes. It should be noted that due to the lack of protocol licenses, any service can purchase this space on the secondary market from anyone who wins space on the market.

It can be concluded that the DOT parachain is a peer-to-peer blockchain that runs simultaneously in the Polkadot ecosystem (the Polkadot and Kusama networks).

Also read: Mainnet Is a Blockchain Network, Here's the Explanation!

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