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Parachains

What are Parachains?

A parachain is a data structure that is application-specific yet is globally coherent and validatable by the Relay Chain’s validators. They are named after the parallelized chains that run parallel to the Relay Chain.

Parachains connects different DApps in the ecosystem and enables signature chains for any service for use with the Relay chain’s consensus.

The Relay Chain is a data structure that acts as a bridge between protocols and the blockchains that run alongside it. They ensure all Parachains can communicate with one another, although they don’t validate anything.

They are conformed by a set of smart contracts that maintain data for a specific application. The parachain can be shared across various applications, to make them faster and cheaper.


How do Parachains work?

(in Polkadot) By bidding in a parachain slot auction, teams agree to lock up the amount of DOT they bid for the length of the lease time selected, at which point the whole amount is freed. The DOT is reserved in the original account throughout the lease duration and is not accessible for staking, transferring, or other purposes.


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