TL:DR
If you have used blockchain or any of its DEXs you would note a reoccurring problem is the lack of interoperability between chains. In other words, it is difficult for one change to communicate with another. Multichain, formerly known as Anyswap, acts as a bridging platform for cryptocurrencies and NFTs across many platforms. Users can bridge cryptocurrencies via pegged tokens or liquidity pools.
As for native tokens that exist in different blockchains, Multichain will make sure to swap across multiple liquidity pools until it reaches the destined coin. If the coin is not in any of its liquidity pools, Multichain will lock the target coin in a smart contract and mint a pegged version of the coin.
Further, MULTI is the official native token for this chain. Previous owners of Anyswap can trade their tokens for MULTI on a 1:1 basis. MULTI is slated to operate as a governance token for the future.
Introduction
If you have ever tried to track yield across multiple blockchains or have invested in multiple blockchains, it is likely that you have heard of MultiChain. MultiChain seeks to bridge each blockchain in a network that will allow them to easily communicate and conduct swaps. Ethereum, Binance, and Cardano, among others, each have their own communities and projects that are built within their blockchain. If blockchain is ever going to reach the mainstream adaptability that many hope for then it will need to find a way to bridge the different blockchains together.
MultiChain has been working on that. It envisions itself as the ultimate router for web3 applications. For blockchain to reach the next level for consumers, something like MultiChain is essential in bridging all the different projects for a faster, inexpensive, and secure way to exchange value and exercise control between different blockchains.
What Is MultiChain?
MultiChain is a cross-chain router protocol (CRP). It build an infrastructure for better interoperability between different chains which has positioned itself to be a premier router for the web3.
Another thing to note with this project is that it is open source project founded in 2020 as Anyswap. It has since rebranded to MultiChain and has since seen popular capital investment firms invest in this project including, Tron Foundation, Sequoia Capital, among others.
As mentioned earlier, MultiChain has bridges across 42 blockchains. In other words, users can seamlessly transfer their assets across mulitple blockchains through its cross-chain router and bridges.
How Does MultiChain Work?
MultiChain is a unique blockchain project seeking bridge multiple chains together. But how does it achieve this? One method is by using smart contracts to lock up tokens in one blockchain and mint wrapped tokens in another. When this method is not possible, it would use a network of liquidity pools across chains to trade bridge tokens. This can be achieved in less than 30 minutes and without slippage.
In order to facilitate bridging amongst different chains it uses a series of nodes run by various parties and mechanisms in place. Lets take a look at some:
Bridging
When a trader wants to transfer their assets across chains, MultiChain issues a standard crypto pegging mechanism to facilitate the transfer. How does this work? I am glad you asked.
Let’s suppose you want to trade Ethereum from Ethereum to BNB Smart Chain. MultiChain will use a smart contract to lock up your asset on Etheruem and mint a pegged version of ETH on BNB Smart Chain. This is done on a 1:1 ration.
Liquidity Pools
The Bridging mechanism may not always work. Some examples are USDC which already exists in multiple chains. In order to solve this issues, liquidity pools must be used. In this form you can just simply swap for your desired coin.
However, someone needs to deposit assets in a liquidity pool in order to ensure availability of the asset. Liquidity providers are incentives to do this by being offered transaction fees.
Cross-Chain Routers
Cross-chain Routers simply takes a users request and uses one of the two methods that we outlined above. By doing this, the user experiences a flawless transaction. Any assets are transferable from any chain to another through any of those two methods.
SMPC Nodes
How is MultiChain secured? Multichain is secured by a series of nodes know as Secure Party Computation (SMPC). These nodes sign off on transactions. Further, to add an extra level of security, the nodes use a distributed Key Generating algorithm which is owned in parts by each node.
For instance, a private key will be split in where each node owns part of the private key. This allows for complete security as the private key will never appear nor revealed. Through this method, security and decentralization are the focal points.
Features of MultiChain
There has been many projects in this specific sector who are trying to make a name for themselve in bridging access across multiple chains. With a plethora of options out there, we look at some features that make MultiChain unique. These include the following:
Offers A Widespread Of Tokens:
One feature that allows it to maintain its presence in asset bridging is that it supports cryptocurrencies and NFTs on over 42 blockchains.
Help Issue Tokens Across Multiple Chains:
Following up on its first feature, as a result of the many chains it is connected to, it can help a project issue tokens on various chains. In other words, they facilitate bridging of assets for projects and users on over 42 chains.
MultiChain Can Access Liquidity Across Blockchains:
MultiChain has access to liquidity across multiple blockchains. These has traditionally been a difficult mechanism to access securely. Nevertheless, MultiChain has been able to access liquidty across multiple blockchains ensuring security and speed in a transaction.
MULTI Tokenomics
MULTI has a total supply of 100 million tokens with 18.6 million in circulating supply. MULTI will be used as a governance token as well. Any person who has ANYSWAP, their previous token, can swap it for MULTI on a 1:1 basis on MultiChain.
How To Use MultiChain
We can bridge any sort of tokens on MultiChain. For this example, we will bridge USDC from Ethereum onto BNB Smart Chain.
Navigate Over to MultiChain
First make sure to open up MultiChain website and navigate to the Router.
Connect Wallet
After landing on the website click on the option that says “connect to a wallet’. Make sure you are connecting using Ethereum mainnet.
Select Ethereum Mainet
On the options to bridge, select Ethereum Mainnet to bridge from on the top.
Select USDC
Select USDC as the token you want to bridge in the top field.
Select BNB Smart Chain
Select BNB Smart Chain as the network to bridge to in the bottom field. The USDC Binance pegged token should atutomatically be chosen.
Select amount you want to Bridge
Once you finish, make sure to select the amount you would like bridge. Select swap after. Congratulations you have now swapped your tokens.
Where To Buy MULTI Token
You can purchase MULTI on Binance. Simply create or log into your existing account then select trade on the menu. From there type in the search boc “MULTI” and select the amount of the token you would like to purchase. Once you have done that select buy.
Final Thoughts
MultiChain offers one of the biggest selections to bridge tokens on its platform. It seeks to become the ultimate router for web3. MultiChain offers users a chance to move assets from Solana to Avalanche to BNB Smart Chain, among others.
As a result of this, interoperability between chains are improves and along with greater access to dApps and blockchain ecosystems. With the Web3 becoming increasingly important in the future, MultiChain seeks to become a premier part in building it.
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