We could think of it as a Layer 2 with the ability to have different engines, all of them interacting with The Consensus Layer. Each Paratime could use the Virtual Machines that suit better to their needs. Today, we have 3 Paratimes, each different from the others.
Emerald Paratime uses an Ethereum Virtual Machine, so creating dApps there is the same as doing it in the Ethereum Network.
Cipher Paratime uses a WASM and confidential Smart Contracts. It uses a system similar to an Airplane’s Black Box, using Trusted Execution Environments to isolate the Smart Contracts and the encrypted data.
Sapphire Paratime is an EVM compatible as Emerald but incorporates Confidential Smart Contracts.