Disclaimer: This platform includes third-party opinions. We do not endorse their accuracy. Digital asset prices can be volatile. Do your own research.
Multichain's diverse infrastructure bridges the gap between blockchains, enabling cross-chain interactions and fostering a more integrated ecosystem.
Key Takeaways
Multichain bridge enables interoperability across diverse blockchains.
Multichain offers services like Bridge, Router, and anyCall for secure, reportedly cost-effective blockchain transactions.
Multichain supports multiple chains, promoting efficient cross-chain interactions in the blockchain ecosystem.
In the increasingly interconnected world of blockchain, cross-chain interactions are becoming a necessity. The Multichain bridge claims to serve as an effective solution to facilitate these interactions, providing a robust infrastructure that is as diverse as the blockchain ecosystem itself.
What is Multichain?
Multichain (MULTI) is an infrastructure developed to service the interoperability needs of diverse blockchains. It was initially launched as Anyswap on 20th July 2020, spurred by the clear demand for different blockchain networks to effectively interact with each other. Each blockchain network brings its unique services, community, and development ecosystem to the table, and Multichain serves as the critical conduit facilitating interaction between them.
Multichain to Fix Blockchain Compatibility
Multichain's compatibility extends across a broad spectrum of blockchains. It works with Ethereum-like chains, such as BNB Chain, and Layer 2 chains that require finality to Ethereum, like Polygon. Additionally, it incorporates networks of Parachains like Moonbeam in the PolkaDot system, Bitcoin-like chains such as Litecoin, and COSMOS chains like Terra. There is a trajectory of integration for these chains, either already integrated or on course for integration.
A feature of Multichain is its universal applicability as an interoperable layer, made possible through its support for all ECDSA and EdDSA encrypted chains. Its open-source and decentralized nature aligns with the ethos of blockchain technology, confirming users of its authenticity and commitment to transparency. As a testament to its decentralized nature, there is no reliance on Externally Owned Addresses, reportedly reducing the potential for weak links in the system.
How does Multichain work?
At the heart of the Multichain network are Secure Multi-Party Computation (SMPC) nodes, entities separate from any blockchain that perform crucial functions in the network. Run by a diverse set of organizations, institutions, and individuals, these nodes participate in signing transactions. However, the key to signing is divided among these nodes, ensuring that no single node ever possesses the full information. This unique operation principle forms the core of Multichain's robust functionality.
Multichain offers a range of services, including:
Bridge: The Bridge service in Multichain deals with asset transfers between different blockchains. An asset is locked up in a Multi-Party Computation (MPC) smart contract on the originating or source chain. Simultaneously, a corresponding wrapped asset is minted on the target chain. This process can be reversed, referred to as 'Redeeming.' In the reverse process, the wrapped asset is burned, and the original asset in the smart contract is released back to its source chain. It's worth noting that a bridge operates between two blockchains and was the first cross-chain service developed by Multichain.
Router: Launched in June 2021, the Multichain Router plays a crucial role in asset transfers across multiple chains. It leverages liquidity pools for pre-existing assets on blockchains. The Router can also work with bridged assets where Multichain is responsible for minting assets on chains, allowing assets to be transferred to another chain without having to return to their source chain. This versatility of the Router ensures cost-effective transactions, especially when assets originate from Ethereum.
AnyCall Crosschain Contract Calls: With anyCall, projects can now make secure cross-chain contract calls. This service enhances the functionality and interoperability of projects, all while leveraging the security of Multichain's MPC network.
Crosschain NFT Bridges and Router: Multichain has expanded its services to accommodate the burgeoning field of Non-Fungible Tokens (NFTs). It now offers a bridge for NFTs compliant with both ERC721 and ERC1155 smart contract standards. Additionally, a Router for NFTs is available, further increasing the network's versatility and applicability in the expanding world of digital assets.
Benefits of Multichain
The Multichain bridge offers multiple concessions, notably versatility, security, cost-effectiveness, and a trustless environment. It supports an array of blockchain networks, fostering wider cooperation in the blockchain space. The use of Secure Multi-Party Computation (SMPC) nodes boosts transactional security, with no single party possessing the full key. Its efficient method of asset transfer across chains makes Multichain cost-effective. With support for 26 chains, daily volumes exceeding $100 million, and a Total Value Locked surpassing $5 billion, Multichain has established a prominent standing in the blockchain field. Its open-source protocol fosters trustlessness, ensuring system transparency without dependence on a single entity. These combined concessions make Multichain a suitable solution for cross-chain interactions, heralding a more integrated blockchain ecosystem.
How to Use Multichain?
Engaging with Multichain's services involves understanding how to utilize the Bridge, Router, AnyCall, and the NFT Bridge. It's important to note that these services are controlled by code, not externally owned addresses, ensuring maximum security. To set up and run SMPC nodes, organizations, and individuals need to adhere to specific guidelines, emphasizing the importance of accurate setup and operation.
Access to Multiple Chains
Multichain plays a pivotal role in facilitating cross-chain interactions in today's diverse blockchain landscape. Its growing significance stands as proof of the progress made in blockchain technology and the escalating demand for seamless compatibility.
