# Technical Infrastructure ## The Reasons for Polkadot Polimec builds on the Polkadot[^1] ecosystem infrastructure due to its crucial differentiation from other decentralized protocols. A key pillar is that Polkadot enables true interoperability[^2] and [cross-chain transfers](#user-content-fn-3)[^3] of any type of data or asset. The ability to interoperate with various blockchains is critical for a thriving fundraising ecosystem and leveraging network effects. Furthermore, on Polkadot every parachain[^4] derives its security from the Polkadot [Relay Chain](#user-content-fn-5)[^5] and its validators[^6]. This ensures that each transaction on Polimec is secure and trustless[^7]. Low transaction fees allow the protocol to scale and [runtime upgrades](#user-content-fn-8)[^8] enable Polimec to improve consistently and swiftly without requiring time-consuming forks[^9]. Polimec executes token transfers between the [network participants](#user-content-fn-10)[^10] and the on-chain treasury in an automated manner. This includes mechanisms for the issuance and distribution of contribution tokens and their conversion to the project’s mainnet token at launch. Polimec works with trusted third-party providers to verify network participants and support them in complying with relevant regulations. Polimec integrates with other parachains and parathreads[^11] built on Polkadot’s technology and any [layer 1](#user-content-fn-12)[^12] or 2 blockchains built on top of the existing [layer 0](#user-content-fn-13)[^13] of Polkadot. Also, Polimec is accessible to other ecosystems, including EVM[^14]-based networks. ## Polkadot’s Parachains Polkadot is an advanced blockchain that utilizes a heterogeneous multichain[^15] architecture, which enables a network of specialized, independent blockchains, known as parachains, to operate in concert under a unified security umbrella. This multichain model allows for diverse, independent blockchains specialized for various purposes to work together, creating a free alliance of sovereign chains. Polkadot, as the layer 0 protocol, underpins and supports this network of layer 1 parachains, enabling cross-chain interoperability and facilitating the transmission of any type of data or asset between parachains, thereby creating a new paradigm of interchain services, communities, and economies. This multichain architecture serves as the foundation for a new, decentralized internet, commonly referred to as Web3, a term coined by Polkadot’s founder [Gavin Wood](#user-content-fn-16)[^16]. The parachain model brings scalability to blockchain technology in a more decentralized and trustless manner. Transactions are distributed across the network, taking place in-parallel or simultaneously on several blockchains, all of which are secured by decentralized validators. The parachain model unlocks a multitude of possibilities for blockchain technology and the future of Web3. Parachains bring a plethora of benefits, a few of which include specialization, flexibility, and interoperability. ## Polkadot’s Consensus Mechanism The Polkadot blockchain has implemented a consensus mechanism known as [nominated proof-of-stake (NPoS)](#user-content-fn-17)[^17] to facilitate the selection of validators who are granted the privilege of participating in the network’s governance protocol. A cohort of individuals referred to as validators are elected to perform vital functions such as block production and the validation of transactions. These individuals are held to a high standard of reliability, and are required to demonstrate their commitment through the act of staking their DOT[^18], the blockchain’s native token, which serves as a collateral for their adherence to protocol. While any node may publicly offer itself as a candidate for the role of validator, only a limited number are ultimately elected, due to operational constraints. Additionally, the ecosystem encourages the participation of DOT holders as nominators, who publicly endorse a list of validator candidates they trust and place a corresponding stake of DOT to support their endorsement. This arrangement provides robust security guarantees by enabling the selection of validators with substantial aggregate stake, while simultaneously eliminating candidates with low stake. Furthermore, the election process is informed by a blend of election theory, game theory and mathematical optimization to ensure fairness and security in the selection of validators. ## Collators’ Role In parachain networks, collators play a critical role in maintaining the parachain’s functionality by aggregating transactions from users on the parachain and generating state transition proofs for Relay Chain validators. To accomplish this, they maintain a complete node[^19] for the Relay Chain and another for their corresponding parachain, enabling them to retain all necessary information to author new blocks and execute transactions, akin to the role of miners on [proof-of-work (PoW)](#user-content-fn-20)[^20] blockchains. In the normal course of operations, they collate and execute transactions to produce an unsealed block, which they then furnish, along with a [proof-of-validity (PoV)](#user-content-fn-21)[^21], to one or multiple validators responsible for proposing a parachain block. It is worth noting that collators are not required to provide security guarantees, as Polkadot’s protocol provides them. The validators are responsible for assessing the validity of submitted candidates and issuing statements about their validity to other validators. Once a candidate meets the criteria for inclusion, it is included in the Relay Chain block. Furthermore, collators are a vital component of the [cross-consensus message format (XCM)](#user-content-fn-22)[^22] by facilitating message passing between different parachains. [^1]: Heterogeneous, multi-chain network allowing various blockchains of different characteristics to perform arbitrary, cross-chain communication under shared security, enabling cross-chain interoperability and scalability. [^2]: Ability for a system, such as different blockchains, to exchange or to make use of information and data. [^3]: Process of transferring tokens or value between different blockchains. [^4]: Purpose-built blockchains that connect to the Polkadot Relay Chain to benefit from shared security, cross-chain interoperability and scalability. [^5]: Blockchain that coordinates consensus and communication between parachains and external chains. [^6]: Node operators in a proof-of-stake (PoS) blockchain that validate transactions and proofs from collators on parachains, and create new blocks along with other validators to earn rewards. [^7]: Ability of a system to function without the need for network participants to trust each other or a central authority/actor. [^8]: Allow changes or improvements made to the underlying software or logic of a blockchain while it is still operational (i.e. without the need for a hard fork). [^9]: Creating a new blockchain protocol by copying an existing one and making changes to its software or logic. [^10]: General term for all network participants interacting on Polimec, i.e. issuers, evaluators, participants, stakers, liquidity providers. [^11]: Allow parachains to temporarily participate (on a block-by-block basis) in Polkadot security without needing to lease a dedicated parachain slot. [^12]: Base protocol layer of a blockchain network. [^13]: Provide the fundamental infrastructure for layer 1 blockchains and are designed to address the challenges prevalent to blockchain systems, including security, scalability and interoperability. [^14]: Ethereum Virtual Machine, a decentralized software used to create decentralized applications and smart contracts. [^15]: System where multiple independent blockchains are linked together to enable cross-chain interoperability and communication between them. [^16]: Polkadot founder and Ethereum co-founder, well known for his contributions to smart contract technology and blockchain interoperability. [^17]: Proof-of-Stake consensus mechanism where nominators (token holders) nominate and back validators with their own stake to secure the network and create new blocks in exchange for rewards. [^18]: Native token of Polkadot, serves three purposes: bonding, general operation, and governance. [^19]: Computers or devices that contribute to maintaining the blockchain by validating transactions, storing a copy of the blockchain, and relaying information to other nodes. [^20]: Consensus mechanism in which nodes solve complex mathematical problems to validate transactions and mine new blocks, requiring significant computational power and energy consumption. [^21]: Consensus mechanism produced by parachain collators where validators check the validity of transactions rather than solving complex mathematical problems to create new blocks. [^22]: Format that enables the exchange of any type of data between blockchains. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://hub.polimec.org/learn/general-information/technical-infrastructure.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. 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