What is Paralink? You’ve probably heard the word smart contracts being thrown around a lot lately. Smart contracts are one of the greatest tools for immutable storage and verifiable transactions. However, the use cases of the tech have restrictions. One of the main reasons for this is that most blockchains are not aware of anything that is happening in the real world, nor can they access data not native to the chain itself. This data includes anything that is available on the traditional web as well as those that is accessible through APIs. So… when you consider how many tools we use today depends on all that data, the problem is quite obvious.
Parallink is a real world data ingress for cross chain applications. Paralink will act as a data bridge between blockchains and real world data. The purpose of the platform is to collect, validate, aggregate and interpolate real-world datasets and feed them into smart contracts on Ethereum and Polkadot. Paralink will also have a flexible node design allowing developers to query data which include real-world events, sports, weather, random numbers and many more. The developers will also be able to create custom queries using Paralink Query Language and then connect smart contracts with traditional web APIs within minutes.
One of the essential pieces of Paralink is their Node. Their Node is an open-source piece of software that is responsible for accessing real world data, and relaying it back to smart contracts through callbacks. Paralink Node can also be run as a self-hosted solution that offers a cheap but centralized data ingress solution. Ideally it is run by self-organizing quorums providing a robust ingress service.
Real-World Data Ingress:
Some of the data sources will require more security than others. An example of this is the real-time price feeds that are used in decentralized derivative and money markets, where any corruption in the price feeds may lead to large financial losses. Therefore, they require a reputable quorum of relayers with on-chain coordination, validation and interpolation mechanisms.
Learn more about: On-chain Consensus
High Quality Entropy:
Blockchain technology is purely deterministic state machines due to the block-level consensus algorithm. This means that the native implementation of randomness is impossible. Hence, Paralink Link provides a cryptographically signed hardware based entropy ingress. Public entropy samples will be provided on a daily basis for statistical analysis.
Learn more about: Entropy Generation
Applications that need a high degree of security can use the Paralink on-chain consensus algorithm that runs on the Polkadot Substrate. This allows the coordination to be much cheaper than performing a similar computation on Ethereum. There are three main security models that offer various different characteristics on the platform.
Paralink Nodes will be able to act as a multi-chain oracle from any 3rd party data source by any developer
Simple Oracle can receive upgrades by the virtue of cryptographically signed PQL which results with ECDSA private keys from reputable data providers.
On-Chain Consensus is for applications that require the highest level of security, without having to rely on a single source of truth.
Is there a token I should know about?
Paralink has its own incentive token known as PARA that’s use is for on-chain coordination and governance. The token’s main use is for paying gas costs of the callbacks onto 3rd party blockchains. You can view the gas prices here. By adding PARA as a fee to a data request transaction will also act as an incentive mechanism for a particular transactions to have priority. You can think of this being quite similar to how ETH works on Ethereum.
The token will also allow token holders to stake Paralink Tokens into a quorum contract. Once they create a quorum contract, the ownership will be based upon the amount of Paralink Tokens that are staked in the contract. The ownership will be in QT’s (quorum tokens), which can convert back into Paralink Tokens on quorum dissolution. The control of a quorum by QT holders, which are also responsible for maintaining a top list of relayer members they trust. Additionally, all the revenues that are generated (in PARA) by the quorum will also be split between QT holders and relayers.
All in all, the Paralink platform provides a solution for the lack of real world data in the blockchain world. The platform provides a more flexible and lower cost option as compared to many of the other platforms out there. It will be exciting to see Paralink’s continual development. So if you would like to learn more about, feel free to check them out here!
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