Author: Solaire, YBB Capital

Introduction

"The only true voyage of discovery, the only fountain of Eternal Youth, would be not to visit strange lands but to possess other eyes."

This is a famous quote by French writer Marcel Proust from his novel "In Search of Lost Time." The essence of this quote is that the true journey of discovery lies not in seeking new lands, but in seeing things from a new perspective.

At the Polkadot Decoded conference on June 28, Polkadot's founder Gavin Wood used this quote as the core idea of his speech, suggesting a new perspective on Polkadot. He proposed viewing Polkadot as a multi-core computer, focusing on providing lower-level resources for blockchains, namely computational cores, rather than just the existing parachains and relay chains.

This article will interpret Gavin Wood's latest speech in an accessible manner, exploring Polkadot under this new paradigm.

Polkadot Under the Traditional Paradigm

Before understanding Gavin Wood's ideas on the new direction for Polkadot, we need to review the current network structure of Polkadot and the slot auction process.

The network structure of Polkadot consists of several main components:

1. Relay Chain: The heart of Polkadot, responsible for ensuring the security of the entire network, handling cross-chain transactions, and providing shared security.

2. Parachains: Multiple independent chains connected to the relay chain. Each parachain has its own on-chain logic and functionality, designed to perform specific tasks such as data storage, identity verification, or financial transactions.

3. Bridges: Allow the Polkadot network to communicate with external blockchains (such as Bitcoin and Ethereum), achieving cross-chain interoperability.

Its structure can be understood as shown in the diagram below:

In the Polkadot network, different blockchains (referred to as parachains) can connect to a unified relay chain. This relay chain is responsible for ensuring the security of the entire network and handling cross-chain transactions. This means that different parachains can communicate and interact with each other, achieving cross-chain interoperability.

However, in Polkadot's network, the resources of the relay chain are limited, meaning only a finite number of parachains can connect to the relay chain simultaneously. These connectable positions are referred to as "slots." To fairly determine which parachains can obtain these slots, Polkadot has introduced a mechanism called "slot auctions." In this auction, parachains wishing to obtain slots must bid, and the parachain with the highest bid will secure the slot. Bids are made using Polkadot's native token, DOT.

Once a parachain wins the auction, it can use the slot for a period (for example, two years). During this time, the parachain can operate and interact with the relay chain and other parachains. When this period ends, the parachain must participate in the auction again to retain its slot or relinquish it to other bidders.

Simply put, the Polkadot network can be likened to a large pile of LEGO blocks. Each block represents a small network ("parachain"), each with its own tasks and functions, such as recording people's names or storing game scores. These small networks can operate independently, doing their own things. However, sometimes these small networks need to communicate with each other, for example, when one small network needs to know the game score from another network. At this point, a larger network ("relay chain") is needed to facilitate their communication. This large network acts like a super connector, linking all the small blocks (small networks) together, allowing them to exchange information. The so-called parachain slot auction refers to the fact that this super connector interface has a limit, and to fairly decide who can use these interfaces (i.e., slots), the interfaces must be auctioned for rental.

Although this structure is more secure and offers better interoperability compared to the Cosmos IBC standard, the high threshold of slot auctions puts pressure on both the community and developers. This has led to Polkadot's ecosystem being less diverse and extensible than Cosmos. Currently, the main use cases for the DOT token are limited to participating in slot auctions, governance, or security staking. In these scenarios, DOT is merely staked and can be retrieved, resulting in almost no consumption scenarios for DOT. The only product form available is the parachain slot auction, leading to issues within the economic system. Gavin Wood's new perspective aims to address these pain points in Polkadot through a fresh lens.

Polkadot as a Multi-Core Computer

As mentioned above, the current relay chain in Polkadot acts like a super connector, primarily responsible for ensuring the security and interoperability of parachains. Viewed from this perspective, Polkadot resembles a blockchain hosting platform. However, under Gavin Wood's new perspective, Polkadot can be seen as a long-running multi-core computer. Developers can build applications on this computer, while users can use applications through it. In this computer, each core can run simultaneously, completing different tasks, where the blockchain running on one core is a parachain, continuously operating on a reserved core. This is similar to our computers, where different programs can run on different processors without interference. In this new understanding paradigm, the concept of the relay chain disappears, replaced by cores and parachains.

Performance of the Multi-Core Computer

According to Wood, the Polkadot computer currently has about 50 cores running continuously, and they can perform parallel computations. Based on benchmarks and Wood's optimization ideas, the number of cores is expected to reach hundreds (500-1000) in the coming years. We can think of these cores as a multi-core CPU, possessing bandwidth (the total amount of data entering and exiting the core) and computational power. Currently, the performance bandwidth is 1Mb/s, with a Geekbench 5 score of 380 for computational power (a popular cross-platform benchmarking tool that tests the performance of computer CPUs and GPUs). The latency (the time interval between executing two consecutive work blocks) is 6 seconds. As hardware develops, both bandwidth and computational power will continue to improve.

Imagining Under the New Paradigm

These cores are not limited to running parachains. By changing perspectives and thinking paradigms, we can envision running smart contracts directly on the cores in the future. Compared to running on smart contract chains (like Ethereum), the multi-core computer can outperform in terms of both cost and computational capability. Their versatility is excellent, and as a continuously operating world computer, Polkadot has greater imaginative potential compared to traditional chains.

From Blockchain to Block Space - Core Time

Let's first use the diagram below to understand what cores and core time are:

As shown in the diagram, there are five rows of differently colored parallel blocks, each row represents a core, and each block can be referred to as core time (this represents an evolution from chains to space). The colors in each row represent different parachains, such as blue parachains and green parachains. There are a total of 5 parachains in the diagram, each using one core. The usage depicted in the diagram is also how Polkadot is currently utilized, but in reality, cores can have multiple uses.

For example, parachains can be distributed across any available cores without affecting performance. Based on this characteristic, cores can have various uses, which Wood refers to as exotic scheduling.

Range Partitioning

In the diagram, each core has 11 core times (hypothetically). We can partition them into ranges. For example, the first row shows that the orange parachain has utilized six core times. When it no longer needs to process transactions, it can allocate the remaining five core times to the blue parachain. The fourth row demonstrates the scenario where three parachains run on one core. Of course, it can be more complex, with five or six parachains running on one core.

Range Layering

Wood refers to this as layering. We can simplify our understanding as a way to change the order of core time usage. The first and second rows demonstrate the situation where two parachains take turns using one core, while the third row shows two-thirds of the time running the light blue parachain and one-third running the yellow parachain. The fourth row illustrates three parachains equally sharing time on one core.

Core Compression

Core compression refers to a single core processing or validating multiple blocks simultaneously. In other words, it is like a super-efficient factory producing multiple products on a single production line to improve efficiency and reduce waiting times.

Multi-Core Allocation

Multi-core allocation is somewhat similar to a combination of elastic servers and fixed servers, or parallel computing of CPUs, used to handle complex situations (Wood gives an example of the same paraID and the same task being allocated to multiple cores). In the diagram, the blue or orange parachains have a core that is used long-term and another that is used intermittently, allowing them to process two blocks within a timeframe. The pink represents a combination of intermittently used cores and additional allocated cores, which can be used to handle high transaction throughput situations.

Multi-Chain One Core

Unlike layered operation, multi-chain one core refers to placing two or three parachains on one core for complete use, thereby sharing the cost of one core.

Combination

All the above methods can be combined, just like assembling LEGO blocks, where different forms of cores can be combined. Various parachains with different needs can create countless applications, forming an extremely flexible and ubiquitous computing power.

The Economy of Core Time Under Elastic Polkadot

By understanding the uses of cores, we also realize that cores have various elastic applications. Depending on the needs of different parachains, they can be freely combined, transforming Polkadot's previously high-threshold slot auctions into core auctions. This approach is akin to selecting server configurations on Amazon Cloud today, where you can adjust the rental period and the number of servers based on your needs. Through flexible selection, Polkadot's performance can be better utilized.

Based on this, Gavin Wood proposed two possible models: bulk purchasing and on-demand purchasing, while also introducing some new concepts: core time assets and Axiom (broker).

Core Time Assets

• No need for direct deployment or allocation
• Core time is essentially homogenized but can be divided into different non-homogeneous assets (which can be directly compared to NFTs)
• Can be traded and assigned to one or multiple parachains

Axiom (Broker)

• A proprietary broker parachain system
• The broker parachain system can purchase large blocks of core time and divide them into smaller core times
• The broker parachain can publicly trade these non-homogeneous assets on other parachains
• The purchased smaller core times are consumed on the broker parachain, allowing owners to allocate computing resources on Polkadot's core

Understanding these two concepts, we can look at bulk purchasing and on-demand purchasing. The bulk purchasing format involves selling once a month, each time at a uniform price for one month of core time assets.

The sales target is set at 75% of the available cores, with possible fluctuations. Prices will adjust up or down based on deviations from the target. Unrented cores will enter the on-demand market, with special considerations for existing parachain tenants. The remaining cores after bulk purchasing will enter the on-demand market for sale through brokers, aiming for 100% utilization of core time. The small core times in the on-demand market can be used to increase transaction throughput and reduce latency (currently, parachains produce one block every 12 seconds, which can be compressed to 6 seconds through multi-core allocation), and can also be used for more tasks such as core contracts.

For those wishing to use a core long-term, brokers will record past purchase prices for reference in the following month. Buyers can choose to purchase core time at the same or similar prices, allowing for better budgeting of periodic costs and risks.

Regarding the impact on existing parachains, leases remain unchanged, and core time procurement pricing is determined by governance. Wood believes it should start at a very low price to lower the threshold, with existing tenants enjoying priority purchasing rights and a main price floor, ensuring long-term availability. Wood also discussed that parachains have more flexible block times. To better understand this, I have placed Wood's usage of core time earlier in the article. Now that we understand the flexible use of core time, we can easily grasp what more flexible block times mean.

Currently, Polkadot's block time is fixed at around 12 seconds, which may be optimized to 6 seconds. In the future, combining flexible block time methods with core time usage may lead to the following scenarios:

• Multi-chain one core: Multiple parachains share one core, producing a block every 12 or 18 seconds, which helps share costs.
• Multi-core allocation: In cases requiring multi-tasking or high transaction throughput, parachains can automatically enter the on-demand market to procure additional core time.
• Core compression: Combining multiple parachain blocks into a core, allowing the same core to process or validate multiple blocks simultaneously. Compression can reduce latency, but costs may increase in terms of bandwidth, as fees must be paid for opening and closing a block.
• Combination: Combinations can take various forms. Wood provided an example where two cores performing computations simultaneously can reduce latency significantly, such as from 12 seconds to 6 seconds, or from 6 seconds to 3 seconds. Essentially, this is a form of multi-core allocation.

The Era Centered on Cores

Many aspects of Polkadot have been contentious in the past, and the new paradigm of multi-core computers described by Gavin Wood in the first part of his speech offers a new way to address the issues Polkadot has faced, such as fixed resource allocation and rental periods for slots. Core time provides options for parachains with different needs. The criticized high threshold of slot auctions can also be significantly lowered, leading to greater diversity in the ecosystem.

By cutting core time into different asset forms, new gameplay can inject more vitality into the DOT token and Polkadot's economic system. The various uses of cores and the resulting multi-core computer provide us with a rich imaginative space. Perhaps all controversies stem from viewing issues from a single perspective. In fact, some problems can be solved simply by changing our viewpoint. Gavin Wood has provided a perfect demonstration, and we look forward to the new Polkadot era centered on cores.