Polkadot has a secret weapon for scaling. Parachains. Parachains are independent L1 chains that run in parallel within the Polkadot and Kusama networks. They connect to the Relay Chain, which provides shared security, interoperability, and scalability, while allowing each parachain to operate autonomously with its own functions, tokens, and governance. Parachains can exchange any type of data with each other through Polkadot’s cross-chain composability. This design solves scalability bottlenecks and allows hundreds of specialized chains to work together. What is Kusama? It’s Polkadot’s sister chain and serves as an experimental environment for faster deployments and testing before moving to the main network. It allows rapid governance decisions and provides a proving ground for new technology. Applications of Parachains: > DeFi hubs > Privacy protocols > Data storage networks > Interoperability bridges > IoT solutions The only design requirement is that each block follows the agreed-upon protocol. But slots for parachains are limited to around 100. They are allocated in three main ways: 1) Common Good parachains: functionality that benefits the whole Polkadot ecosystem 2) Auction-granted parachains: teams can lease a slot on the Relay Chain by winning a parachain auction by bidding native DOT or KSM 3) Parathreads: these connect on a pay-as-you-go basis for temporary use Parachains and parathreads share the same security and interoperability features. This slot system gives smaller projects a path to entry. With Polkadot’s governance-led upgrades, the ecosystem is positioned for continual expansion and innovation.