Blockchains that break down walls.
Parachains are Kusama’s advanced, next-generation blockchains that bring several breakthroughs compared to legacy networks. Together they form the Kusama ecosystem, an interconnected network of specialized chains breaking down the walls of the centralized web.
Open possibilities for Web3 builders.
While other blockchain networks only allow developers to build dapps using smart contracts, Kusama gives them full control over the underlying blockchain itself. This flexibility gives parachain developers the maximum freedom to optimize for specific use cases — which means better and more secure dapps and services for all.
Welcome to the paraverse.
From DeFi to identity and supply chain, gaming and NFTs, IoT, DAOs, and more, parachains can be built for any use case. They can also take on various forms depending on their intended function, including:
Independent token economies
Parachains with their own tokens, fee structures, and economic ecosystems.
Smart contract parachains
Platforms for hosting smart contract based dapps and services.
Common good parachains
Designed for the benefit of the entire Kusama ecosystem, common good chains typically use the network’s native token, KSM.
Parachain hubs
Parachains that provide a range of functionality to serve a broader community or use case, for example DeFi hubs and governance hubs.
Bridge parachains
Bridges allow Kusama parachains to connect to external networks like Polkadot, Bitcoin and Ethereum.
Parathreads
Pay-as-you-go parachains for early stage networks and those that don’t need continuous connectivity to Kusama.Parachains as autonomous agents
Parachains can act autonomously based on the will of their communities to participate in Kusama governance and allocate on-chain treasuries. This opens the door to new decentralized funding models, from project funding to decentralized sovereign wealth funds and even cross-chain mergers and acquisitions.
Parachains as digital nation states
With their own communities, rules, economies, governance, treasuries, and relationships with external chains, parachains are akin to decentralized digital nations. Kusama allows them to come together, communicate and share security guarantees for the betterment of the entire ecosystem.
Parachain Slot Auctions & Crowdloans
Parachains connect to Kusama by leasing a parachain slot via auction. Parachain slots can be leased for up to 1 year at a time with the option to renew, and grant the parachain continuous connection to the network for the duration of the lease.
How auctions work
Bonding
To bid in an auction, parachain teams agree to lock up (or bond) a portion of Kusama’s native token, KSM, for the duration of the lease. While bonded for a lease, the KSM cannot be used for other activities like staking or transfers.
Auction cost
After the lease, the full amount of KSM is unlocked, meaning auctions do not require teams to “spend” KSM. The cost of running a parachain on Kusama is best characterized as the opportunity cost of not being able to use the bonded KSM for other activities.
Crowdloans
Some parachain teams will fund their bid with the help of a crowdloan campaign, which allows them to accept contributions from KSM holders. Crowdloan contributors get their KSM back at the end of the lease, and parachain teams can choose to reward them in various ways, including with a distribution of the parachain’s native token.
Auction Duration
Auctions on Kusama have an open bidding period of approximately 1 week. At the end of the week, the precise moment of the auction’s close is determined retroactively. This prevents last-minute “auction sniping” and promotes more accurate price discovery. Parachains can onboard to Kusama immediately after the auction.
Learn more about how auctions and crowdloans work in this in-depth video explainer.
Dive deeper into auctions and crowdloans
This bird breaks down walls.
Parachain launch NFTs
Three limited edition NFTs were created to celebrate the launch of Kusama parachains. Representing three interpretations of the Kusama canary by Berlin street artists Awer, Vidam and Andreas Preis, the paintings were created on a section of the Berlin wall now used as an open canvas for free artistic expression. The collection was limited to 9,999 NFTs, which have already been claimed.
