What are parachains?
Share on Facebook Share on LinkedIn Share on Pinterest Share to Email Share on Telegram Share on WhatsApp  The cryptocurrency sector has a strong technical component. After all, both crypto and the blockchain networks in which they exist are nothing more than ever-changing software. This makes changes (many of them terribly complex) happen at breakneck speed, and in many cases, it is difficult to be aware of what is happening. For example, this occurs with parachains. Basically a parachain is a secondary blockchain network integrated into a main blockchain or relaychain network. Not all blockchain networks admit the existence of parachains, and in fact, at the moment only one does, the Kusama network, waiting for the Polkadot network to start its own. The idea behind parachains is to turn the main network (Kusama, Polkadot, or whatever) into an Internet of blockchains, where programmers can create their own systems based on a larger network. This will make all kinds of applications flourish within new blockchain networks, such as decentralized exchanges and other DeFi (decentralized finance) products that are undoubtedly the new strong players in the crypto world. Because of the way it is created. Take the example of Kusama. This network (which has its own crypto, also called Kusama) makes holes for parachains available to developers. These holes are obtained by auction. The developers propose their project to the users of the network (the owners of Kusama) and they choose whether or not to support the auction of that parachain with their Kusamas. If the parachain wins the auction, in addition to returning the Kusamas invested in the first place, they also give a reward to all those who supported it and made the auction win. This is very recent, but some exchanges, such as Kraken, already allow their users deposit Kusamas for parachains auctions like Karura, Bitfrost or Kala. The Polkadot network is expected to start its own parachain auctions throughout the summer. In short, parachains allow crypto users to support individual projects that they consider valuable. If such projects win the auction, the users who supported them will receive rewards. It is, therefore, a way to get economic performance from cryptocurrencies without having to sell them. Not everyone in crypto is so technical. If you have more basic questions, you can take a look at our latest video, in which we answer the most frequent questions about cryptos. .