Demographic change does not stop at blockchain technology. The Bitcoin Blockchain paved the way for publicly shared and decentrally managed ledgers and thus anonymous transactions. Ethereum has enriched and expanded the crypto ecosystem with decentralised applications with the introduction of smart contracts. It is projects like Cardano, Solana and Avalanche that herald the third blockchain generation with a focus on interoperability and scalability. Polkadot also counts itself among the new, third blockchain generation.

Launched by former Ethereum co-founder Gavin Wood in 2016 and managed by the Web3 Foundation, Polkadot aims to provide cross-chain communication in the crypto world. Blockchains are closed systems: Data exchange between networks via oracles and bridges – correspondingly resource-intensive and error-prone. But Polkadot has found an answer to these problems: Parachains.

Parachains are independent blockchains that attach themselves to Polkadot’s relay chain and thus embed themselves in the cross-platform ecosystem. The relay chain is the heart of Polkadot, the “heart” provides security, ensures consensus and manages the status of the connected networks. Blockchains, as a parachain in Polkadot, thus benefit from high user activity and liquidity, but act sovereignly. They have their own native currencies and specific application possibilities.

Unlike other blockchain networks that specialise in specific use cases, Polkadot’s parachain system covers the entire spectrum from decentralised finance (DeFi), gaming and supply chains, to oracles and the Internet of Things (IoT). Polkadot is thus as versatile as its parachains.

While smart contracts are often limited to transactions, Polkadot allows the exchange and processing of all data. Ultimately, Polkadot is based on the vision of an Internet of Blockchains that enables cross-platform interactions, breaks up the monopolies of the big techs and gives users back control over their data.