What is a Crowdloan and a Parachain?

Find out more information about Crowdloans, Parachains and Polkadot's Slot Auction

 

What is a Parachain?

A Parachain is a data structure specific to applications that can be validatable by validators of the Relay Chain. Relay chains are the core of the Polkadot network, responsible for maintaining security, consensus, and cross-chain interoperability.

A Parachain will assume a parallel nature, being able to parallelize transaction processing and scalability of the Polkadot System. Parachains are maintained by collators. Its role is to maintain a node of the Parachain, retaining all the information from the Parachain and producing new block candidates.

The nomination of Efinity collator nodes will be provided by users who vote on and select the best-performing collator nodes. The collators with the most votes will be allowed to process network transactions and be compensated with EFI from the collator pool.

Nominators will be required to stake or deposit ENJ (which may include ENJ infused in ENJ-minted NFTs).

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What is a Polkadot Auction?

In order for a Parachain to be added in Polkadot, it needs to fill one of the available slots for Parachains.  

A Parachain slot is a resource available on Polkadot and it has a limited number of available spots. The main goal of Polkadot is to have 100 Parachains available. Parachain slots will be sold according to a candle auction that has been modified to be secure on a blockchain.

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What is a Crowdloan?

Anyone who registered a Parachain can create a Crowdloan campaign for a slot by depositing a specific number of tokens. Campaigns are configured as a range of slots, a cap, and a duration. The duration can last over multiple auctions.

For more information on Polkadot Crowdloans, click here.