Find out how Polkadot Parachains are revolutionary for DeFi.


The Polkadot blockchain is a breakthrough technology in the blockchain ecosystem as it differs from other existing blockchains and hopes to solve the inherent challenges users face in decentralized finance.

The limitations of existing blockchains, including scalability, issues encountered while upgrading the blockchain, high transaction fees, and interoperability, are some of the issues addressed by the Polkadot blockchain.

Scalability issues, one of the current challenges of most major blockchains, have resulted in the validation of a limited number of transactions per second. As networks get bigger and develop, this becomes a big problem, and it leads to transaction congestion which also attracts high transaction fees and long response time.

In a world where market demands are constantly changing and improving, it is essential to meet the needs of investors by upgrading blockchains to meet those needs. This, however, is not possible with most blockchains as an upgrade on them would lead to the entire blockchain being forked, and it could even take months to run successfully.

The inability of current blockchains to effectively communicate with each other, share information and execute transactions is one of the great challenges faced in the decentralized finance ecosystem.

All of these challenges are solved by the Polkadot blockchain. The Polkadot blockchain connects multiple chains into a single network. It allows them to process transactions in parallel faster and facilitates the exchange of data between chains. This concept gave birth to the Polkadot Parachain.

Introduction to Polkadot Parachain

The Polkadot blockchain brings together a network of various blockchain fragments called parachains connected to and secured by the chain of relays. To paint a good picture of this, consider a ceiling fan. The fan motor is likened to the relay chain and the blades are likened to the parachains.

These parachains are advanced layer 1 blockchains that exceed the current limitations of most blockchains found in the ecosystem. Polkadot parachain gives developers the freedom to optimize their ecosystem for any use case they choose.

To address the inherent issues present in most blockchains, Polkadot developers came up with the idea of ​​creating Polkadot parachains that promote interconnectedness, are specialized, scalable, facilitate seamless on-chain upgrades, leverage treasuries in chain, have built-in and customizable features. governance, have built-in security, are developed with the substrate, allow all data to be sent, and provide users with the best user experience through the facilitation of low and transparent fees.

5 Essential Things You Should Know About Parachain Polkadot

To better understand the benefits and ideas behind the Polkadot Parachain, here are five essential things you need to know

1. Flexibility

The Parachain Polkadot, in its true nature, allows for flexibility. Unlike other blockchains where decentralized applications are created within the boundaries set by the blockchain, Polkadot Parachain gives flexibility to projects built on the Polkadot blockchain as they can have their design, native token, incorporate their use case ranging from DeFi to NFT, IoT, games or even supply chain, projects can have their own block time, mining reward, governance process and others can be built from their specific development platforms.

This concept enables more optimized services and multifaceted economies in the blockchain ecosystem.

2. Interoperability

The ability of blockchains and decentralized applications to share data with each other is a big challenge that limits the generalization of decentralized finance. Polkadot parachains are a rich, interconnected ecosystem where data flows freely between chains, leading to innovative and interoperable services. This allows all data to be sent through dApps and parachains.

3. Scalability

Major blockchains are not scalable because transactions are processed one at a time, causing network congestion and incurring high fees when dApp usage increases. The Polkadot parachain solves this problem by processing all transactions at the same time in parallel, spreading them across the entire multi-chain network for maximum scalability and better user experience for investors.

4. Governance and security

Parachains have the flexibility to create their governance features and processes to implement the best system for their community. They can also take advantage of Polkadot’s built-in transparency if they find it relevant and exciting for their community.

For every parachain, security is guaranteed because they automatically get strong security when they connect to Polkadot.

5. Parachain Polkadot Auction

Polkadot is estimated to support a limited number of 100 parachains, and the allowance will be given in several ways. Parachains will be connected to the Polkadot by renting a slot on the relay chain, which will expire after 96 weeks with the option to renew. In order for decentralized apps to secure a spot in the parachain, they will need to participate in an on-chain auction, requiring winners to lock in a $DOT bond for the duration of the lease.

The Parachain auction operates in 5 different stages: the bond stage, the auction cost stage, the equity loan stage, the auction duration stage and the slot duration and the rental periods.


The parachain is a way for the Polkadot blockchain to distinguish its ecosystem from other blockchains and provide solutions to the inherent challenges faced by users in adopting decentralized finance.

With Polkadot Parachain, users can benefit from fast transaction validation, low and transparent transaction fees, and better communication with other blockchains.

Developers can also take advantage of the security, governance, and flexibility provided when using parachains.