Polkadot is a Layer 0 solution designed as a base layer for web3. The chain has been created in order to make existing blockchains more integrative, and to knit the ecosystem together as it grows. Consisting of a central “relay chain”, and several attached “parachains” running parallel to the relay chain, the network is designed to allow several blockchains integrate and function seamlessly as one cohesive unit.
This design of the Polkadot ecosystem has led to the creation of blockchains that are designed to integrate well with Polkadot, Kusama and other chains, one such example of which would be Moonbeam. The appearance of these integrative bridge chains between networks points to a more multi chain future in general.
With Polkadot facilitating such a multilayer internet of blockchains, the exchange of information and transactions between chains becomes quicker, easier and more effective. Of course Polkadot is designed to be decentralised, and all of its functions are intended to be carried out in a trustless manner.
Through this method of creating a connected ecosystem, Polkadot aims to connect private and consortium blockchains, oracles, public and permissionless networks, with the provision to connect future technologies that have yet to be created. In connecting these networks makes it easier to connect dApps, services and institutions. In its own words, Polkadot is aiming to “free society from a reliance on a broken web where its large institutions can’t violate our trust”. Successfully achieving this objective would mean a web3 ecosystem that functions more effectively, and has a greater network effect.
Polkadot is founded by the Co-founder of the Ethereum network, Gavin Wood, in conjunction with the web3 Foundation, a Swiss based company that aims to “nurture cutting-edge applications for decentralised web software protocols”.
The chain aims to “enable a completely decentralised web, where users are in control”. This focus on decentralisation means that Polkadot’s primary focus is trustlessness, and is aligned with the true ethos of web3.
Polkadot allows arbitrary data, not just tokens, to be transferred across blockchains. This makes it possible for the chain to take permission data from a private blockchain and use it on a public chain. An example of a use case for this would be academic records which exist on a private chain, being made publicly verifiable on a public chain.
The network of blockchains that Polkadot ties together are called parachains and parathreads. As mentioned above they are integrated into the network via the backbone “relay chain”, and can also connect to external networks via bridges. Parachains and parathreads are similar in many ways. Parathreads employ a pay-as-you-go model, and are therefore a more economical option for blockchains which do not need continuous connection to the network.
Consensus on the Polkadot network is acheived using a Proof-of-Stake model. Nominators secure the relay chain by selecting trustworthy validators and staking DOT. These validators stake DOT, validate proofs from collators and participate in consensus with other validators. Collators maintain shards by collecting shard transactions from users and producing proofs for validators.
Governance on Polkadot is comprised of council members and a technical committee. Council members are elected to represent passive stakeholders in two primary governance roles, proposing referenda and vetoing dangerous referenda. The technical committee is composed of teams actively building Polkadot. This committee can propose emergency referenda together with the council for fast tracked voting and implementation. This sophisticated DAO mechanism allows for effective governance of the Polkadot ecosystem.
The relay chain of the Polkadot network is built using substrate, a language created off of the back of the development of the Ethereum, Bitcoin and enterprise blockchains. Created by Parity Technologies, it is designed to allow blockchains to work together seamlessly.
Polkadot’s state machine is compiled to Webassembly (Wasm), which is a super performant virtual environment. Wasm has been developed by large companies such as Google, Apple and Microsoft, and there is a large ecosystem of support for the project.
