Polkadot: What’s the difference between Parachains and Parathreads?

The Polkadot ecosystem is leading the charge as the third generation of blockchain technology takes off. Polkadot’s popularity stems from the fact that it addresses scalability and interoperability concerns. Developers can utilize their method to create multi-chain projects that run on multiple blockchains at the same time. Projects can also link with existing blockchains using chain bridges. To do this, they use a series of parachain slots connected to a Relay Chain, with developers bidding on slots to win time. Parathreads, on the other hand, can provide businesses with pay-as-you-go access to the Relay Chain. Continue reading to find out which choice is the greatest.

Parachains: What Are They?

Parachains are essentially blockchains that exist on the Polkadot network. They are linked to a central Relay Chain, allowing for scalability and interoperability. Developers wishing to produce can bid on parachains because they take up a designated space. There are common good parachains that are set aside for projects that benefit the central Relay Chain or the entire community, in addition to publicly available parachains. A public governance system determines which seats are available. If you win a parachain bid, you will have access to the Relay Chain for the duration of the lease, and your bond will be your DOT allotment.


What are parathreads exactly?

In terms of functionality, parathreads and parachains are very similar. The main difference is that they are not subject to bidding. Instead, they use the Relay Chain as needed. A parachain is paid for the amount of time it is connected to the chain. The decision between parachain and parathread is based on the type of project you’re working on and the amount of money you have.

Parathreads or Parachains?

When bidding on a parachain spot, start with a 5 DOT bid, which is worth roughly $200 depending on the market. To win the slot, you’ll need a sizable bankroll as well as a supportive community. To give you a sense of scale, Acala won the first parachain auction with a $1.3 billion lock-in DOT. They’ll be able to use that parachain slot for the duration of the lease. Their assets are unfrozen once they’ve done.


A parathread would be the greatest alternative for you if you don’t have the financial backing or a supportive community. The practical side of your project, as well as the financial side, will determine if you need to invest in a full parachain slot. For example, if your project runs only on your network and requires only limited interoperability, having a parachain slot isn’t practical. Just because you chose a parathread now doesn’t guarantee you won’t be able to occupy a parachain later. By allowing developers to work on interoperable applications, the Polkadot ecosystem represents a significant step forward in the blockchain realm. Their bidding method and asset freeze for the life of the lease will ensure that the ecosystem continues to move forward.

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