Connecting the Dots: How Blockchains Can Interoperate with Polkadot
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The document discusses the need for interoperability among blockchains as the number of chains increases, highlighting the challenges of fragmentation and centralization in a multi-chain future. It outlines the Polkadot approach to cross-chain integration, emphasizing the benefits of shared security, specialization, and scalability through parachains and the Substrate framework. The text underscores that increased decentralized connectivity among blockchains is inevitable, driven by the demand for productive asset utilization.
Connecting the Dots: How Blockchains Can Interoperate with Polkadot
- 1. Connecting the Dots: How Blockchains Can Interoperate Derek Yoo CEO, PureStake
- 2. "I think there is a world market for maybe five computers." - Thomas Watson, CEO of IBM, 1943
- 3. Proof of Work Proof of Stake Different Kinds of Chains
- 4. Moving Into a Permanently Multi-Chain Future LEADING TO NEW PLATFORMS Many next-gen chains emerged in 2019 which address scalability. ETHEREUM IS CONGESTED Cost efficiency & scalability challenges are driving projects to build on other chains & SPAWNING NEW ECOSYSTEMS where Cosmos and Polkadot in particular act as catalysts. … And even more are on the way in 2020
- 5. But Chains are Islands, Creating Unique Challenges In this multichain future, chains are still islands by default and cross-chain integration is the exception rather than the rule. This creates a highly fragmented landscape limiting choices for users and developers. This threatens de-centralization as users and assets largely flow into centralized exchanges.
- 6. Why Connect Chains? Satisfy inherent demand for assets to be productive/find returns. Allow for chain specialization, which creates scalability. Increase the addressable market for Dapp developers.
- 7. Existing cross chain integration: Token Bridge Alpha Chain Beta Chain A Coin Wrapped A Coin A Coin Wrapped A Coin
- 8. A network that connects & secures blockchains. • Nominated Proof of Stake • • Pooled Security Resources • • Forkless Upgrades • • On-Chain Governance • • Native Cross-Chain Token Transfers •
- 9. RELAY-CHAIN provides pooled security and passes messages PARATHREADS contain logic and handle transactions PARACHAINS contain logic and handle transactions Polkadot Approach
- 10. Relay Chain Validators Parachain Collators One Parachain Bridges
- 11. XCMP = Cross Chain Messaging Protocol A standard for parachains to communicate arbitrary messages with each other. Standards for Cross Chain Integration SPREE = Shared Protected Runtime Execution Enclaves (aka Trust Wormholes) Pieces of shared logic living on the Relay Chain that parachains can opt into.
- 13. Open source, modular, and extensible development framework. • Platform for Building Blockchains • • Quick, Easy & Flexible • • Features for Customization •
- 14. What is Substrate? Substrate provides all the core components of a Blockchain: ● Database Layer ● Networking Layer ● Consensus Engine ● Transaction Queue ● Library of Runtime Modules ...Each of which can be customized and extended.
- 15. The Substrate Runtime The runtime is the block execution logic of the blockchain, a.k.a. the State Transition Function. It is composed of Runtime Modules. Substrate Frame Pallets assets ✔ babe ✔ balances collective contract democracy elections ✔ grandpa indices grandpa ✔ indices membership offences session staking ✔ sudo ✔ system ✔ timestamp treasury and more... RUNTIME
- 17. Substrate and Polkadot Takeaways Utilizing Parachains Substrate based chains can connect as parachains to Polkadot to leverage the shared security and interoperability. Cross-Chain Integration Polkadot also allows for native cross chain integration which will create strong network effects. E.g. Bitcoin <-> PolkaDot bridge + Price Oracle Chain combined on a Smart Contract chain = Bitcoin lending and borrowing DeFi application. Specialization and Scalability Polkadot allows chains to specialize (do one thing and do it well!), which in turn creates scalability through specialized sharding. Dramatically Reduces Implementation Effort Allows for projects to be built quickly and efficiently, first hand experience getting to prototype under 1 month.
- 18. Connected Chains (Whether We Like It or Not) Increasing decentralized connectivity between blockchains inevitable. Led by assets wanting to be productive (vs under a mattress) Perry Expedition, Edo Bay, July 1853 Isolationist strategies unlikely to work.
- 19. Thank you derek@purestake.com meetup.com/Polkadot-Boston @purestakeco & @polkadotbos on Twitter