How It Works
The Relay Chain uses Nominated Proof of Stake (NPoS) where nominators back validators with their DOT to share in both rewards and slashing risks. Parachains — specialized blockchains optimized for different use cases — lease slots on the Relay Chain through on-chain auctions, paying with DOT. The Relay Chain validators produce proofs that parachain state transitions are valid, providing 'shared security' so parachains inherit the full security of the entire DOT validator set without needing their own. Cross-Chain Message Passing (XCMP) enables trustless communication between parachains without bridges.
Consensus Mechanism: Nominated Proof of Stake
Proof of Stake consensus selects block proposers based on the amount of cryptocurrency staked as collateral. Validators risk losing their stake (slashing) if they act dishonestly, creating economic security without energy expenditure. Stake-weighted selection means larger stakers have proportionally greater influence on block production.
Key Architecture Facts
| Category | Interoperability |
| Consensus | Nominated Proof of Stake |
| Launched | 2020 |
| Founder | Gavin Wood |