10 Polkadot Parachains – A brief Overview (Part 2)

In our previous article, we explored the projects that secured a Polkadot parachain during the first 10 Polkadot parachain auctions. In this article, we will take a closer look at 10 of the Polkadot parachains that won the parachain slots 11 to 20. Each of these parachains has its own unique features and benefit that make it stand out from the rest. Keep reading to learn more about them!

There are currently twenty parachains on the Polkadot network, each with its own unique features and applications. This article provides a brief overview of 10 of these parachains. This list includes projects working in different areas and sectors. From Decentralized Finance, Privacy, and NFTs all the way to the Internet of Things and decentralized identity management.

Read: The first 10 Parachains on the Polkadot Network

What is Polkadot?

Polkadot is a third-generation blockchain platform that aims to unite an entire network of purpose-built blockchains. Polkadot enables these purpose-built blockchains to operate and communicate with one another at scale. By allowing various blockchains to exchange information in a seamless way, Polkadot aims to unlock a wide range of real-world use-cases.

Such a design allows individual projects and teams to build a blockchain tailored and optimized to their needs. Each team focuses on solving the problem at hand in the best possible way while leveraging the technology built by other teams. This design is based on the realization that there won’t be a one-size-fits-all blockchain as different applications have different requirements when it comes to volume of data, transaction speed, etc.

Polkadot’s structure is composed of two main types of blockchains: The relay chain and the parachains. The relay chain is the main chain of the network that is responsible to provide foundational services to the parachains, such as governance and interoperability mechanisms. The launch of the Polkadot Relay chain in 2021 brought a lot of excitement to institutional investors as it opened up a completely new world.

Read: Polkadot: Blockchain Interoperability Platform

What is a Polkadot Parachain?

A parachain is a universally validatable application-specific data structure used by the Relay Chain’s validators. They derive their name from the notion of parallel chains that run alongside the Relay Chain. A blockchain is the most popular form of a parachain, but they don’t have to be actual blockchains.

Because they operate in tandem, they are able to parallelize transaction processing and scale the Polkadot system. They collaborate in the network’s security and may communicate using the XCM protocol with other parachains.

Read: Polkadot Platform Architecture

What is a Parachain Slot Auction?

Parachains join the Relay Chain by leasing a slot on it for up to 96 weeks at a time, with the option to extend. Parachain slots are auctioned on the blockchain, with winners seizing a DOT bond for the duration of their lease.

Auctions and crowdloans have raised the bar for blockchain ventures, encouraging them to demonstrate their technology and gain community support before going live.

A Brief Overview of 10 Polkadot Parachains (slots 11 – 20)

1 – Nodle

Polkadot Parachains - Nodle

Nodle Network was the project to secure a parachain slot during the 11th Polkadot parachain auction. The Nodle Network is a decentralized wireless network made up of Nodle Edge Nodes powered by the Nodle Chain, as well as the NODL token.

The Nodle Network is a worldwide, simple-to-use decentralized communications network for the Internet of Things devices. The Nodle networking stack is a software solution that allows hardware and IoT devices to be monetized.

Nodle is a platform that allows contributors to share their communication resources so that they enable network connectivity. These contributors become part of a common, interoperable “Citizen Network” and are incentivized to expand the network using a Proof of Connectivity algorithm. The number of base stations, network bandwidth, and geographical reach are all taken into account in this Proof of Connectivity algorithm.

The Nodle Network is made up of the software that runs on wireless devices, including smartphones, routers, fixed base stations, drones, automobiles, and other connected machines.

The Nodle Network aims to become a low-cost, worldwide, scalable connectivity system that allows many services to be built on top of it using an economy of connectivity and decentralized infrastructure.

2 – Equilibrium

Polkadot Parachains - Equilibrium

Equilibrium by winning the twelfth parachain slot auction aims to introduce the first DeFi 2.0 protocol on Polkadot. Equilibrium takes a unique on-chain approach to risk and pricing for asset portfolios. It allows borrowers to borrow with as little as 105% collateralization and margin traders up to 20X leverage.

Equilibrium’s revolutionary liquidation mechanism for liquidations, which has low friction and does not require auctions, opens the door to the first fully on-chain order book-based decentralized exchange with high leverage.

Equilibrium offers a number of features that distinguish it from other well-known DeFi protocols. First, there are no arbitrary governance-set interest rates. They’re determined by a borrower’s portfolio, debt level, overall system liquidity, and market risks and dynamics. Second, there are no arbitrarily determined LTV standards. The system ensures that every position is solvent at a 100 percent collateralization ratio. Third, borrowers who default on their loans do not incur any hidden costs or penalties.

In popular money markets, such as AAVE and Compound, new investment opportunities are funded by taking loans in major stablecoins. Users, on the other hand, must switch to different applications because there is no trading functionality on the primary platforms. Equilibrium resolves this issue effectively by integrating many DeFi technologies in one location.

Equilibrium’s Assets module allows the project to quickly and simply build a full range of DeFi offerings on one blockchain, effectively out of the box. The equilibrium assets module supports asset lending, a decentralized exchange that enables users to engage in leveraged trading, a fractional reserve system, synthetic asset creation, and porfolio hedging.

3 – Phala Network

Polkadot Parachains - Phala Network

Phala Network is the first Polkadot parachain to win a slot during the parachain slot auctions to bring privacy to the Polkadot ecosystem. 

Although Phala became popular because of its unique privacy feature and cutting-edge “blockchain + secure enclave” architecture, data privacy is only one of the basic features of the network. Phala’s mission is to become the world’s largest P2P computing network, i.e., a decentralized IT cloud built on Web 3.0.

The Phala Network is a decentralized cloud computing platform that attempts to compete with established cloud computing providers like Amazon AWS or Google Cloud.

The term “cloud computing” is used to describe the maintenance of big, internet-based data warehouses that provide computing resources, such as data storage and computational power, for end-users. The Phala network enables unused computer capacity to be put to use while also promoting a more distributed cloud computing and storage model.

The goal of Phala is to give these features through a decentralized, worldwide network of computing resources that can scale for performance while also optimizing for privacy and security.

To do so, Phala employs two kinds of worker node participants that allow the network to function. First, gatekeeper nodes organize interactions between Phala network users and other blockchains. Gatekeepers are in charge of maintaining the blockchain’s status and consensus rules. Second, miner nodes operate a CPU network and perform complex computations for the network by renting out their computer resources.

Using two types of nodes in the Phala network allows for the distinction of consensus and computation responsibilities across the network.

4 – Unique Network

Polkadot Parachains - Unique Network

The Unique Network is a blockchain network on which you can build NFT dapps, marketplaces, minting solutions, games, launchpads, and other things. It may be viewed as the groundwork for Polkadot NFT Standards. It’s also compatible with the Ethereum Virtual Machine. In the long run, it will connect to other chains.

Some of the unique features of Unique Network include Flexible economic models, Advanced ownership and management as well as NFT to NFT interactivity.

Unique Network, with the flexible economic models, is helping to create a new world of freemium games on the blockchain. Sponsored transactions, subscriptions, and scheduled transactions are all options. You determine how your consumers engage with your platform, dApps, and NFTs.

Unique Network’s advanced ownership and management provide new sophisticated NFT management and control, allowing delegated parties to rent, exhibit, and manage Unique NFTs. Re-fungible NFTs may be shared and distributed by the owner.

Finally, Unique Network’s NFTs may interact with one another and change the properties of linked assets thanks to their ability to own other Fungible and Non-Fungible Tokens.

Unique Network won slot 14 of Polkadot parachain slot auctions. 

5 – Litentry

Polkadot Parachains - Litentry

Litentry is the 5th Polkadot parachain on this list who has won the 15th parachain slot.

Litentry is dedicated to providing a solution for decentralized identity management. Decentralized Identity differs from conventional identification by its creation procedures, which are not controlled or inspected by any central authority.

More DID data will be generated on chain as Web 3.0 expands. Because of its highly scattered character, these data exist on various networks, but the current Web 3.0 infrastructures, which are quite comparable to the internet, do not allow for easy data integration and synchronization across networks, posing a problem from a data management perspective.

Indexing data across blockchains enables data fragments to be eliminated from isolated data islands, allowing data owners to arbitrarily manage and use their information.

Litentry is a decentralized ID Aggregator that allows users to connect their identities across multiple networks. It gives users access to their personal information and dApps real-time DID data for an identity owner on different blockchains using a secure vehicle.

6 – Polkadex

Polkadot Parachains - Polkadex

Polkadex Orderbook is a non-custodial, peer-to-peer trading platform that combines the advantages of centralized and decentralized exchanges into a next-generation decentralized product suite. On Polkadex, users get the best of both CEX and DEX worlds while trading trustlessly.

Polkadex is an on-chain solution that will allow users to create, trade and manage their own cryptocurrency portfolios. Polkadex also includes PolkaIDO, a ground-breaking, entirely on-chain IDO platform that makes IDOs more equitable and transparent. Fungible assets for teams that want to mint their native tokens, NFTs and other future features down the line are among Polkadex’s features. The goal of Polkadex is to bring millions of people into DeFi by offering products that can be used by novice as well as expert crypto traders, institutions, and blockchain project teams.

Polkadex is a parachain project that uses SubstraTEE, the first Substrate abstraction layer for SGX technology, to create a DEX. The architecture of Polkadex’s Orderbook incorporates several technologies: blockchain, parachain, TEE, IPFS, and other cutting-edge elements provided by the blockchain sector today.

7 – OriginTrail

Polkadot Parachains - Origintrail

The OriginTrail is the first fully decentralized Knowledge Graph that aims to organize humanity’s most essential assets, making them discoverable, verifiable, and valuable. It forms a single connected reality that links the physical world (art, healthcare, fashion, education, supply chains, and so on) with the digital world (blockchain, smart contracts, Metaverse & NFTs, and DeFi).

Trillion-dollar enterprises like Google and Facebook currently utilize sophisticated knowledge graph technology. The OriginTrail Decentralized Knowledge Graph, which transforms it for Web 3.0, provides a key foundation for linking, verifying, and monetizing data from both physical and digital assets.

According to the team, OriginTrail is currently being used by leading enterprises to create value for their ecosystems. OriginTrail is enabling frictionless trade across borders for almost 40% of US imports by allowing for the secure sharing of security auditing data. The same semantic fabric that underpins the decentralized knowledge graph, for example, protects pharmaceutical supply chains or may be utilized to organize blockchain data in order to provide seamless access to DeFi decentralized apps.

OriginTrail Parachain extends discoverability, verifiability, and greater value for interconnected Web 3.0 assets to Polkadot by using the power of the OriginTrail Decentralized Knowledge Graph.

Among the many Polkadot projects, OriginTrail became the 17th project to secure a parachain slot.

8 – Bifrost

Polkadot Parachains - Bifrost

Bifrost is the 18th among the Polkadot projects to win a parachain slot. Bifrost is a web3 derivatives platform that allows users to trade staked assets across different blockchains. It can provide cross-chain liquid staking services for several chains by employing Polkadot’s cross-consensus message (XCM).

Bifrost’s objective is to offer standardized cross-chain interest-bearing derivatives for Polkadot relay chains, parachains, and heterogeneous chains linked to it.

Bifrost’s protocol also lowers the staking threshold, raises the multi-chain staking ratio, and improves the ecosystem application base by combining 80% of PoS consensus chains’ staking liquidity through cross-chain derivatives. This is done by establishing a three-way positive feedback cycle for the StakeFi ecosystem by empowering users, multi-chains, and ecosystem applications.

9 – Coinversation

Polkadot Parachain - Coinversation

The Coinversation Protocol is a Parachain built protocol that allows the creation and trade of synthetic assets using any cryptocurrencies or stocks, bonds, gold, or other off-chain assets. It combines any cryptocurrencies or stocks, bonds, gold, and other off-chain assets with smart contracts and oracles to produce any number of synthetic digital assets.

Users can create a synthetic asset by collateralizing CTO or DOT, such as US dollars, and acquire a long position in the digital asset. Users may also utilize the trading platform to convert minted assets into different assets in order to achieve the goal of shorting the asset while simultaneously longing for other digital assets.

The assets generated by all users represent the system’s liabilities, and the proportion of each user’s liabilities has been set at minting time so that their earnings may be determined. Because such a collateral pool model does not need a counterparty, it effectively solves the problems of liquidity and transaction depth in decentralized exchange(DEX).

Coinversation became a Polkadot parachain by winning the 19th parachain slot during the Polkadot’s parachain slot auctions.

10 – Totem Kapex

Polkadot Parachain - Totem Kapex

Totem, as of the time of writing, is the project that has won in the most recent parachain auction and plans to develop the world’s first peer-to-peer accounting consensus network.

Totem ensures that all parties to a transaction have their accounting records updated at the time of the event in a way that leaves no scope for fraud, collusion, or cheating by utilizing peer-2-peer connectivity and real-time consensus features of blockchains.

The network’s global nature prevents foreign bad actors from restricting trade between consenting parties while still preserving personal and commercial privacy.

The primary target market for Totem is the decentralized economy. We are all heading toward a future in which our accounting will be at the atomic level of our own Identities, as businesses employ less and contract freelancers more.

Totem is attempting to achieve a world where we only need to share a Totem Identity, and all of the book-keeping will be handled automatically, silently, and without an accountant in view.

Aris Ioannou
Aris Ioannouhttps://coinavalon.io
Aris created Coinavalon with the purpose of helping the average person navigate the decentralized web. Aris has been passively in the space since 2017 and full time since late 2020. Before Coinavalon, Aris worked as a Business & IT Architect in the financial services sector. Aris holds an MSc in Advanced Computing from Imperial College London, a BSc in Computer Engineering from University of Cyprus and currently pursuing an MBA degree from CIIM.

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