Definition
A parachain is a type of blockchain that operates alongside a central relay chain within a multi-chain network design. It connects to the relay chain to benefit from shared security, consensus, and communication with other connected chains. Each parachain maintains its own state, rules, and tokens while relying on the relay chain for final settlement and coordination. This structure allows many specialized blockchains to function together as part of a single, unified ecosystem.
Parachains are designed to be customizable so that each one can focus on a particular use case, such as payments, smart contracts, or data services. While they are independent in terms of logic and features, they remain tightly linked to the relay chain for validation and cross-chain messaging. This parallel arrangement aims to increase overall network throughput by distributing activity across many coordinated chains rather than a single, monolithic blockchain.
In Simple Terms
A parachain is like a separate blockchain lane that runs next to many other lanes, all connected to the same main highway. The main highway, called a relay chain, provides security and a way for these lanes to talk to each other. Each lane, or parachain, can be built for a specific purpose while still being part of the larger network. This lets the system handle more activity at once without relying on just one chain to do everything.