The Role of Polkadot in the Development of Interoperable Blockchain Networks
One of the key features of blockchain technology that is on the verge of becoming a reality is interoperability: the ability of different blockchain networks to send messages and transact with each other. Of the solutions currently being developed, Web3 Foundation’s Polkadot is the most advanced and robust. This article tries to understand how it’s changing what’s possible for distributed blockchains to interact and what this means for the world of blockchains going forward.
Understanding Polkadot’s Architecture
Polkadot is designed as a multi-chain architecture. Unlike the single-chain solutions currently offered by blockchain networks such as Ethereum, Polkadot features a central ‘uplink’ known as the Relay Chain, which supports multiple parallel chains or ‘parachains’. This enables a high degree of scalability, facilitating a proliferation of different uses. Parachains can have their own native tokens, governance schemes and characteristics that are customised for different use cases.
The Relay Chain of Polkadot is the infrastructure that underpins the network’s shared security and consensus mechanism; it orchestrates global states, enables trust between parachains and ensures cross-chain transactions are executed safely, effectively scaling the network’s shared security mechanism to better handle an increasing burden of global transactions. This architecture allows for chain autonomy where chains can co-exist and interact with one another on a larger blockchain network.
Facilitating Interoperability and Scalability
Indeed, one of the main innovations Polkadot has brought to the world of blockchain technology is the promise of true cross-chain interoperability through its XCMP cross-chain message passing protocol, which ensures that parachains can directly talk to and share data with any other parachain. This is a central technological pillar of the smart economy, allowing different types of applications to interact with and leverage each other’s benefits towards a larger ecosystem.
And the problem of scaling so many transactions to one block – which can be a weakness of other similar blockchain networks – doesn’t exist. Instead, parachains allow multiple transactions to take place on different chains at the same time. This increases the speed and throughput of transactions, as well as keeping the load on the system even, so it doesn’t face a bottleneck.
Driving Innovation in the Blockchain Space
This flexibility also provides a breeding ground for innovation. Conceivably, you could develop a parachain that addresses a specific task or industry, and build on top of the Relay Chain. Some of the parachains that have already been built run web applications, while others hold ‘tokens’ that can be transferred on demand. Still others are building new markets for decentralised finance (DeFi). I’ve even seen plans to build a world computer. The reach of these applications extends beyond the parachain level.
In addition, Polkadot provides the most sophisticated blockchain governance model to date, by allowing updates and amendments to the network to be made on an ongoing basis through a community governance system that ensures collective agreement on how to proceed with future changes to the web. This not only makes for a more responsive and flexible network but also keeps the best interests of the decentralised, blockchain community at the forefront of development.
Implications for the Future of Blockchain Technology
Polkadot will fundamentally change the landscape of blockchain networks by increasing interoperability and scalability, which are arguably the two most important obstacles for blockchain technology to overcome. Polkadot’s architecture will pave the way for new and longer lasting blockchain ecosystems with greater integrity and efficiency.
As the blockchain industry expands and evolves, DOT (Polkadot’s native token) will allow for new ideas to flourish in an entirely new space. Breaking down the barriers between different blockchain platforms and unleashing their potential into a new network has limitless potential.
