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Why Parachains Could Start the Next Revolution of Crypto

By (Rain İçerik Ekibi - Jun 13, 7:00 PM

Blockchain and decentralization have completely changed how the world thinks about secure transactions, but with increased popularity came limitations that current infrastructures can’t, or can hardly, overcome. In this article, we’ll tell you all you need to know about parachains and the cryptocurrencies employing their concept, which could be the key to the global adoption of tokenized ecosystems.

What are Blockchains’ Limitations?

To understand the nature of the limitations, one should get familiar with how blockchains work. In essence, blockchains are distributed, open-source data ledgers that are able to store transactional and other types of data in a secure and immutable way. The name blockchain originates from the way data is handled, that is, grouped into interconnected clusters called blocks. One block can only connect to two others, the one behind and the one after it, which makes blockchains strictly develop in a single line.

Now, imagine a road that has only one lane, but traffic of a highway wants to go onto it—a jam is inevitable. The same phenomenon happens in most blockchains’ case when they aim to substitute centralized solutions: they are unable to handle a higher number of transactions without compromising on security, or other aspects. Enter parachains, which might just create the first multi-lane highways of the crypto world.

What are Parachains?

Parachains are blockchains that run parallel to each other and to one, main blockchain that usually connects all other chains of the network. Both parachains and their main chain belong to a common ecosystem that can be imagined as a highway with multiple lanes, similar rules, but possibly different kinds of utility and destination. The autonomy that parachains have varies between networks, sometimes they get almost full independence from the main chain, in other cases they are basically identical copies of one another. Nonetheless, they serve the same purpose, that is to boost the capabilities of blockchain-based networks in every regard.

How Parachains Lift Blockchains’ Limitations

Blockchain networks with parachains can effectively double, triple, or even increase the processing power of singular blockchains multiple fold. The reason behind such performance boost is simply the fact that each parachain is able to take on all the tasks of its peers, which spreads the workload, and thereby lowers the pressure on each individual chain.

Two of the best attributes of scaling with parachains is that there is virtually no limit to how many of them can be added to an ecosystem, and that adding parachains is highly cost-effective. This means that networks with such infrastructure can theoretically be expanded as demand and pressure grows, resulting in unmatched efficiency and dynamic throughput.

In practice, parachains will be the greatest upgrade Ethereum has ever experienced, as they will make the network scalable and fast while retaining high level security.


Blockchain technology offers benefits like unprecedented security, and unbiased data storage, which unsurprisingly make it attractive for more and more users. The issue comes when the increased base results in a pressure that a single blockchain can’t handle. This is where parachains come into play, and mitigate the high processing demand by distributing the tasks among each other. With all considered, their virtually unlimited scalability, cost-effective mechanics, and relatively simple implementation could truly make parachains the next great revolution of the crypto space.


Rain is a Crypto-Asset Services Provider headquartered in İstanbul. Rain provides services to its users at financial institution standards.





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