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Approaching multi-chain technology
The future of DeFi
What is multi-chain & cross-chain?
credit: bholdus
Multi-chain means “multi-chain, cross-platform”. Specifically, in the crypto market, if a project is deployed on a multi-chain, it must be deployed on at least two chains, which can be Ethereum, Binance Smart Chain, Solana, Polkadot, Avalanche, or other blockchains.
Cross-chain is a solution that allows the transfer of assets from one chain to another in order to optimize the ability to synthesize between chains. Cross-chain projects allow users to connect and transfer assets between different blockchain platforms.
Multi-chain simply refers to many different chains. Specifically, besides the original chain (such as ETH), a specific project can be deployed independently in another chain such as BSC or Polkadot. However, the assets can only be flowed between independent chains by cross-chain solution, which is a tool that allows users to transfer assets between the Ethereum chain and other chains available on the market.
Benefits of Multi-chain implementation
When the Multi-chain technique is used on projects, not only users but also the project will profit from the following:
• Reach the number of users in the new blockchain.
• Overcoming the main chain’s shortcomings (congestion, slow speed).
• Take advantage of many different chains (cheap fees, fast speeds).
• Popularize your token on another blockchain.
• Users in the smaller blockchain can access sections that the blockchain has not implemented.
A multi-chain future
Multi-chain technology is a critical step in developing blockchain into a high-growth industry.
Almost all DeFi projects are now built on the Ethereum blockchain, which has become the standard default blockchain for many decentralized apps and protocols (DApps). Scalability on Ethereum, on the other hand, has encountered several difficulties. Expensive gas taxes, difficult and unnecessary deployment processes, and impediments for developers to launch new DApps and connected goods have all slowed uptake.
As a result, new blockchains like Binance Smart Chain, Solana, Cosmos, and layer two solutions like Polygon are swiftly catching up and eliminating some of the issues that come with building on top of Ethereum. Contrary to common belief, these solutions are not intended to “kill Ethereum,” but rather to give a multi-chain approach to Web 3.0 development. Every day, more blockchains and blockchain projects are being established as developers strive to make use of the technology’s possibilities. The increase is a tacit acknowledgment that there is no ideal solution that can meet all of the blockchain’s demands at the same time.
Conclusion
Many of the challenges we confront are readily overcome by scaling solutions such as bridges, parachains, and other features that provide a smooth transition for Web 3.0 users. However, the future of blockchain will be determined by the community’s common vision of a multi-chain strategy.
#Blockchain #DeFi #Dreamlauncher #Ethereum #Multi-chain
Author: Nguyen Thuy Duong
Last modified 6mo ago