Polkadot has launched the first phase of its parachain network, offering custom-made layer 1 blockchains with scaling capabilities that can be used for various use cases. The parachains, a unique part of the crypto market, offer a more customisable alternative to the limited network capacity of traditional blockchains, with Polkadot’s base layer acting as a hub for security. Moonbeam, Acala, Parallel Finance, Clover and Astar are currently providing parachain services, with prices ranging between $25 and $50. Polkadot’s design marks a departure from Ethereum’s rollup roadmap, using different programming languages to describe the base layer, increasing interoperability with other networks.
Parachains: The Next Phase in Polkadot’s Roadmap
The launch of the first parachains on Polkadot is finally here, and it’s a unique part of the crypto ecosystem that everyone should be paying attention to. In this article, we’ll dive deeper into what parachains are, how they can help with scaling, and what the first set of launched projects are.
What are Parachains?
Parachains act as their own layer 1 blockchains that are custom-made for a variety of different use cases. They tap into the Polkadot base layer for security, making it a highly anticipated event within the crypto ecosystem. This is not much different from Ethereum’s rollup roadmap, where a large network of independent blockchains will use a base layer blockchain as a hub.
The Launch of the First Parachains
Moonbeam, Acala, Parallel Finance, Clover, and Astar are the first set of launched parachains on Polkadot. Moonbeam is one of the most popular parachains and is an extension of the Moonriver platform previously launched on the Kusama network. As one of the top EVM-compatible chains, it allows developers to easily port applications from other networks. Acala is the first project to win a parachain auction on Polkadot and is hoping to be a one-stop-shop for DeFi on Polkadot. Another DeFi platform, Parallel Finance, is focused on becoming the “DeFiPulse of credit” while also being compatible with Bitcoin in the future. Clover Finance is focused on making the Polkadot DeFi ecosystem interoperable with other networks, while Astar is working on decentralized applications in general.
In addition to the public parachains that have launched, Energy Web will be partnering with Polkadot developer Parity for the Consortia Relay Chain, requiring an entirely new token for the Energy Web ecosystem. The testnet version of the Consortia Relay Chain and an initial set of connected blockchains are expected to launch sometime in the second quarter of next year.
Polkadot’s parachains are something to watch out for in the crypto ecosystem as it paves the way for a new crypto ecosystem. The unique architecture of parachains allows for diverse and custom-made use cases and taps into the Polkadot base layer for security, providing a highly scalable solution. With the first set of launched parachains being highly anticipated, it’s definitely worth keeping an eye on what’s next for Polkadot.