Concepts

Parachain Fundamentals

Parachain: A specialized blockchain that runs in parallel to the Polkadot relay chain
Relay Chain: The main Polkadot blockchain that coordinates parachains and provides shared security
Collator: Nodes that maintain parachains by collecting transactions and producing state transition proofs
Validator: Nodes on the relay chain that validate parachain blocks and secure the network
Parachain Slot: A scarce resource that allows a parachain to connect to the relay chain
Parathread: Pay-as-you-go parachain that competes for block inclusion without a dedicated slot

XCM (Cross-Consensus Messaging): Protocol for secure message passing between parachains
XCMP (Cross-Chain Message Passing): Transport layer for XCM messages between parachains
Teleport: Asset transfer mechanism for trusted parachains
Reserve Transfer: Asset transfer through a trusted reserve parachain

Shared Security: Parachains inherit security from the relay chain’s validator set
GRANDPA: Finality gadget used by Polkadot for deterministic finalization
BABE: Block production mechanism for the relay chain
Proof of Validity (PoV): Evidence that a parachain block represents a valid state transition

Parachain Auction: Mechanism for acquiring parachain slots through DOT token bidding
Crowdloan: Community-driven funding mechanism for parachain slot auctions
Treasury: On-chain fund for supporting ecosystem development and proposals