Crypto Terms:
Letter P
What is Parachain?
Meaning:
Parachain -
an application-based data structure that runs in parallel with other parachains on the Polkadot network.
Let's find out Parachain meaning, definition in crypto, what is Parachain, and all other detailed facts.
Parachain is an application-based data structure (which could take a form of a blockchain) that runs on the Polkadot network in parallel with other parachains. Parachains are connected to Polkadot in a way that allows developers to create new, independent networks that are powered by the same framework as the main chain.
Substrate, a new-generation framework for developing blockchains with Web3 capability, which is also used to build and develop Polkadot and Kusama, supports the technology behind parachains.
Each parachain is connected to the main chain via the central Relay Chain, allowing them to operate independently without jeopardizing the network's integrity. Cross-Chain Message Passing (XCMP) allows the parachains to exchange messages with other parachains on the same Relay Chain. As it can have its own functionality, tokens, governance system, and other blockchain properties, parachain can be treated as a standard blockchain.
Since each parachain is linked via Relay Chain, it can still benefit from the Polkadot network's security and be backed by its validator architecture. To put it in another way, maintaining a parachain doesn’t require the creation of one's own validator community.
Validators are also assisted by collator nodes in securing parachains. Though collator nodes, unlike validators, do not secure the network. They keep track of all parachain data, choose new block candidates, and confirm the inputs and state of a parachain along with validators.
Note that the economics of parachains might differ from those of the broader Polkadot ecosystem. This means that they can charge various transaction fees based on the preferences of their own community.
node is in its simplest form. A node is a key element of a blockchain’s infrastructure that’s linked to the network with an IP address. Essentially, nodes transmit information between each other and allow the validation of transactions. For example, if you want to connect to a specific blockchain, you will have to use nodes.<\/p>\n<p>Now, when it comes to participation nodes, they’ve been introduced by the Algorand platform.<\/p>\n<p>By <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-staking/">staking Algo and generating a valid participation key, a network participant is able to become a participation node which is considered to be one of the most powerful nodes on the platform. Access is only granted to those participation nodes that have the user’s participation key.<\/p>\n<p>Algorand categorizes nodes into relay nodes and participation nodes: <\/p>\n<ul>\n<li><a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-are-relay-nodes/">Relay nodes<\/strong><\/strong><\/a> operate within the information relaying area. This means that they efficiently transmit messages from one participating node to another creating a sort of network hub;<\/li>\n<li>Participation nodes<span> use participation keys to sign the consensus protocol communications and introduce and validate new blocks as a means to assist the PPoS protocol. All communication between participation nodes flows through relay nodes since participation nodes use Algorand’s <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-consensus-mechanism/">consensus mechanism<\/strong><\/a> to receive messages from the relay nodes. <\/span><\/li>\n<\/ul>\n<p>The processes of proposing and voting on blocks go through Algorand’s PPoS consensus method which applies a two-tier block creation procedure. Participation nodes propose and vote on blocks in the interests of their user within the consensus protocol. <\/p>\n<p><strong>One participation node can hold numerous participation keys<\/strong> and, in turn, represent numerous participants. Anyone can run this kind of participation node, just like any regular node.<\/p>\n<p>Granted that the majority of participation nodes conduct the consensus process fairly, users are guaranteed that the blockchain remains secure and won’t split in case of an emergency.<\/p>","definition":"is a term used within the Algorand platform that outlines how nodes assist with the consensus process of conducting the Pure Proof of Stake (PPoS).","status":"published","meta_title":"What is Participation Node? Definition & Meaning | Crypto Wiki","meta_description":"Participation Node meaning: Participation Node - is a term used within the Algorand platform that outlines how nodes assist with the consensus process of conducting the Pure Proof of Stake (PPoS).","meta_keywords":null}"
:prev-section="{"id":585,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Bitcoin#Paper_wallets","level":"medium","author_id":1,"created_at":"2023-06-19T06:59:00.000000Z","updated_at":"2023-12-07T20:24:24.000000Z","slug":"what-is-paper-wallet","title":"What is Paper Wallet?","section":"P","keyword":"Paper Wallet","content":"<p><strong>A paper wallet is a sheet of paper that has the user's <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-private-key-secret-key/">private and <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-public-key/">public keys<\/a><\/strong>. Or, in other words, a physical storage system. Cryptocurrencies are digital assets, so a paper wallet provides them with a system to securely keep unique keys to users' virtual funds. Besides, the keys can be maintained in their <strong>alphanumeric<\/strong> <strong>raw form or printed as a QR code<\/strong>.<\/p>\n<p>Note that cryptocurrencies like <a href=https://www.bitdegree.org/"//crypto//buy-bitcoin-btc/">Bitcoin and <a href=https://www.bitdegree.org/"//crypto//buy-ethereum-eth/">Ethereum have both – public and private keys.<\/p>\n<p><strong>A public key<\/strong> operates in the same way as a public email address and can be publicly disclosed to enable others to deposit it. However, it permits others from accessing BTC in your account. Speaking of <strong>private keys<\/strong>, they operate like vulnerable passwords and provide the holder with the possibility to access and exchange funds.<\/p>\n<p>Wallet generators provide <strong>unique public and private keys<\/strong> that are generated at random.<\/p>\n<p>Now, despite the fact that paper wallets are <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-cold-storage/">cold storage devices<\/strong><\/a>, they also pose a number of concerns. For example, <strong>the paper might be destroyed or lost<\/strong>. Moreover, the printer's paper and ink quality could also have an influence on the readability of the keys, especially if they are stored for an extended length of time. Factors such as water, fire, or air moisture can potentially cause harm to the paper wallet.<\/p>\n<p>Furthermore, difficulties may develop if the wallet-generating software is updated and fails to recognize the format of the previous paper wallet. Though there are also “<strong>steel wallets<\/strong>” out there that are fire-resistant and should last a very long time.<\/p>\n<p>Since paper wallets are not connected to the internet, they were once thought to be <strong>safer than other kinds of virtual funds storage<\/strong>. Nevertheless, despite the fact they are especially safe if they are placed in a safe spot, paper wallets are <strong>not as popular as they used to be<\/strong> as a result of upgrades in cryptocurrency storage technology.<\/p>\n<p>If you were to create a paper wallet, you would need a <strong>credible paper wallet generator<\/strong>. Also, make sure not to create a paper wallet from an electronic source because you can leave a digital footprint that might be used by hackers later on.<\/p>\n<p>The easiest approach to creating a paper wallet is to <strong>write down your recovery <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-seed-phrase/">seed phrase<\/a> or the private key from your screen or device<\/strong>. Though check it at least twice, and then hide it in a secure place. This is something that can be accomplished in both <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-software-wallet/">software and <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-hardware-wallet/">hardware wallets.","definition":"a piece of paper that contains a user's private and public keys.","status":"published","meta_title":"What is Paper Wallet? Definition & Meaning | Crypto Wiki","meta_description":"Paper Wallet meaning: Paper Wallet - is essentially a piece of paper that contains a user's private and public keys.","meta_keywords":null}"
:model="{"id":566,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Polkadot_(cryptocurrency)","level":"easy","author_id":1,"created_at":"2023-06-19T06:59:00.000000Z","updated_at":"2023-12-07T20:29:08.000000Z","slug":"what-is-parachain","title":"What is Parachain?","section":"P","keyword":"Parachain","content":"<p><strong>Parachain is an<\/strong> <strong>application-based data structure<\/strong> (which could take a form of a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-blockchain/">blockchain) that runs on the Polkadot network in parallel with other parachains. Parachains are connected to Polkadot in a way that allows developers to create new, independent networks that are powered by the same framework as the main chain.<\/p>\n<p><a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-substrate/">Substrate, a new-generation framework for developing blockchains with Web3 capability, which is also used to build and develop Polkadot and Kusama, <strong>supports the technology behind parachains<\/strong>.<\/p>\n<p>Each parachain is connected to the main chain via the central <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-relay-chain/">Relay Chain<\/strong><\/a>, allowing them to operate independently without jeopardizing the network's integrity. <a href=https://www.bitdegree.org/"https:////research.web3.foundation//en//latest//polkadot//XCMP//index.html/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Cross-Chain Message Passing (XCMP)<\/strong><\/a> allows the parachains to exchange messages with other parachains on the same Relay Chain. As it can have its own functionality, tokens, governance system, and other blockchain properties, <strong>parachain can be treated as a standard blockchain<\/strong>.<\/p>\n<p>Since each parachain is linked via Relay Chain, it can still benefit from the Polkadot network's security and be backed by its validator architecture. To put it in another way, maintaining a parachain doesn’t require the creation of one's own validator community.<\/p>\n<p>Validators are also assisted by <strong>collator nodes<\/strong> in securing parachains. Though collator nodes, unlike validators, do not secure the network. They keep track of all parachain data, choose new block candidates, and confirm the inputs and state of a parachain along with validators.<\/p>\n<p>Note that the <strong>economics of parachains might differ from those of the broader Polkadot ecosystem<\/strong>. This means that they can charge various transaction fees based on the preferences of their own community.<\/p>","definition":"an application-based data structure that runs in parallel with other parachains on the Polkadot network.","status":"published","meta_title":"What is Parachain? Definition & Meaning | Crypto Wiki","meta_description":"Parachain meaning: Parachain - an application-based data structure that runs in parallel with other parachains on the Polkadot network.","meta_keywords":null,"author":{"id":1,"user_id":1,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2023-05-11T07:18:20.000000Z","title":"Editor-In-Chief","slug":"aaron-s-editor-in-chief","description":"<p>Having completed a Master’s degree on Economics, Politics & Culture for the East Asia region, Aaron has written scientific papers with a comparative analysis of the differences between US’ Western and Japan’s Collective forms of capitalism, 1945-2020.<\/p>\n<p>With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.<\/p>\n<p>Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.<\/p>\n<p>Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.<\/p>","user":{"id":1,"first_name":"Aaron","last_name":"S.","email":"aaron@bitdegree.org","email_sanitized":"aaron@bitdegree.org","email_verified_at":"2023-12-01T09:40:20.000000Z","must_verify_email":false,"is_registered_with_wallet":false,"status":"active","country":"LT","last_connected_ip":"88.119.132.125","image_id":2641,"referral_token":"05TMu2NysXOCn525","referred_by":null,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2024-01-09T15:22:21.000000Z","full_name":"Aaron S."}}}"
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Standards","status":"published","modified_content":null},{"chapter_id":3,"order":5,"slug":"how-to-buy-crypto","title":"From Fiat to Crypto: How to Buy Crypto for the First Time","status":"published","modified_content":null},{"chapter_id":3,"order":6,"slug":"fiat-to-crypto","title":"Taking Profits: Turning Crypto Into Fiat","status":"published","modified_content":null},{"chapter_id":3,"order":7,"slug":"how-to-use-crypto","title":"You\u2019ve Got Crypto: What Can You Do With It?","status":"published","modified_content":null}]},{"id":4,"title":"Crypto Wallets","slug":"crypto-wallets","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-wallets.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-wallets-101.jpg","rating":80,"sections":[{"chapter_id":4,"order":1,"slug":"what-is-a-crypto-wallet","title":"What is a Crypto Wallet?","status":"published","modified_content":null},{"chapter_id":4,"order":2,"slug":"hot-wallet-vs-cold-wallet","title":"Hot Wallet VS Cold Wallet: Which One to Pick?","status":"published","modified_content":null},{"chapter_id":4,"order":3,"slug":"non-custodial-wallet","title":"What are Non-Custodial Crypto Wallets?","status":"published","modified_content":null},{"chapter_id":4,"order":4,"slug":"what-is-metamask","title":"Metamask: The Leading Non-Custodial Wallet","status":"published","modified_content":null},{"chapter_id":4,"order":37,"slug":"how-safe-is-cryptocurrency","title":"The Key Crypto Wallet Safety Practices: How Safe Can Crypto Be?","status":"published","modified_content":null}]},{"id":5,"title":"NFTs","slug":"nfts","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-nfts.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/nfts-101.jpg","rating":100,"sections":[{"chapter_id":5,"order":2,"slug":"how-to-trade-nfts","title":"NFT Trading: The Ins and Outs","status":"published","modified_content":null},{"chapter_id":5,"order":3,"slug":"buying-nft","title":"Tips and Tricks of Choosing the Right NFTs","status":"published","modified_content":null},{"chapter_id":5,"order":4,"slug":"how-to-store-nft","title":"How to Store NFTs: Best Practices","status":"published","modified_content":null},{"chapter_id":5,"order":5,"slug":"how-to-create-an-nft","title":"How to Create Your Own NFTs?","status":"published","modified_content":null},{"chapter_id":5,"order":6,"slug":"how-to-make-passive-money-with-nft","title":"Making Passive Money with NFTs","status":"published","modified_content":null}]},{"id":6,"title":"dApps & Defi","slug":"dapps-and-defi","updated":true,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-dapps.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/dapps-defi-101.jpg","rating":80,"sections":[{"chapter_id":6,"order":1,"slug":"what-are-nfts","title":"What are Non-Fungible Tokens (NFTs)?","status":"published","modified_content":null},{"chapter_id":6,"order":1,"slug":"what-is-defi","title":"What is Decentralized Finance (DeFi)?","status":"published","modified_content":null},{"chapter_id":6,"order":2,"slug":"what-is-defi-2-0","title":"DeFi 2.0: The New Version of Decentralized Finance","status":"published","modified_content":null},{"chapter_id":6,"order":3,"slug":"what-are-dapps-in-crypto","title":"What Are dApps and How Do They Work?","status":"published","modified_content":null},{"chapter_id":6,"order":4,"slug":"defi-dapps","title":"Picking the Right dApps: Dos and Don'ts","status":"published","modified_content":null},{"chapter_id":6,"order":5,"slug":"what-is-web-3-0","title":"Web 3.0: The Future of the Internet","status":"published","modified_content":null},{"chapter_id":6,"order":6,"slug":"what-are-smart-contracts","title":"What is the Core Purpose of Smart Contracts?","status":"published","modified_content":null},{"chapter_id":6,"order":7,"slug":"what-is-a-dao-in-crypto","title":"The Notion of a Decentralized Autonomous Ogranization (DAO)","status":"published","modified_content":null},{"chapter_id":6,"order":8,"slug":"what-is-staking-in-crypto","title":"What is the Goal of Staking Crypto Assets?","status":"published","modified_content":null},{"chapter_id":6,"order":9,"slug":"what-is-liquidity-pool-in-crypto","title":"What is a Liquidity Pool and How Does It Work?","status":"published","modified_content":null},{"chapter_id":6,"order":10,"slug":"what-is-automated-market-maker","title":"Automated Market Maker: the Cornerstone of the Decentralized Crypto Exchange Industry","status":"published","modified_content":null},{"chapter_id":6,"order":11,"slug":"what-is-yield-farming-in-crypto","title":"The Main Yield Farming 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Cryptocurrencies?","status":"published","modified_content":null},{"chapter_id":7,"order":2,"slug":"how-to-invest-in-crypto","title":"Investing in Crypto: What Investing Options Do You Have?","status":"published","modified_content":null},{"chapter_id":7,"order":3,"slug":"ico-vs-ido","title":"ICO vs IDO vs IEO: Which One is the One?","status":"published","modified_content":null},{"chapter_id":7,"order":4,"slug":"what-is-an-airdrop","title":"What are Crypto Airdrops and How to Get Them?","status":"published","modified_content":null},{"chapter_id":7,"order":5,"slug":"how-to-get-free-crypto","title":"How to Get Free Crypto Assets?","status":"published","modified_content":null},{"chapter_id":7,"order":6,"slug":"how-to-arbitrage-crypto","title":"What is Crypto Arbitrage: The Main Principles","status":"published","modified_content":null},{"chapter_id":7,"order":7,"slug":"what-is-a-perpetual-contract","title":"Perpetual Contracts: Futures Contracts Without an Expiration 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current-chapter="P"
current-section="what-is-parachain">
