Blockchain
The proliferation of multi-chain interoperability solutions allows disparate blockchain ecosystems to communicate with each other in ways that were not possible before.
Multichain improves Blockchain interoperability
Multichain optionality is something that has become an increasingly important topic of discussion within the crypto ecosystem as a whole. Before we explain and define multichain in depth, it’s worth noting why it’s become such a valued feature – and what pain point it improves on. In short, multichain protocols and tools improve blockchain interoperability.
Blockchain interoperability is the ability for individual blockchains – or their associated ecosystems – to communicate with each other. By means of Interaction, we mean they can communicate with each other through the ability to share data through blockchain protocols. This interoperability enables smart contracts, decentralized applications (dApps), and crypto to transfer between chains. This allows users of crypto ecosystems to move to the blockchain protocol that best suits their needs. Someone can switch to another chain to access cheaper or faster transactions. You can also move to a chain that is considered more secure or has a higher number of users and activities (to access the crypto capital and liquidity within that ecosystem). To understand the importance of interoperability within this space, it may be helpful to imagine a scenario where a network you already use is not interoperable.
While this is something you’ve probably never thought of, you can use any smartphone you own (Apple, Samsung, LG, and so on) to communicate with anyone on any network you use (Verizon, T-Mobile, AT&T, and more). otherwise who also has a smartphone and a corresponding mobile subscription. It doesn’t matter if their phone or their network (or both) are different; it’s still easy to call or text them the same way you would if they shared both your network and plan. Without this interoperability, both parties could need the same hardware (smartphone manufacturer) and mobile network to exchange text messages only.
While interaction via text and calling is easy, the ability for blockchains to communicate – and exchange data – is still a frustrating pain point for users of the crypto ecosystem. You cannot use native bitcoin (BTC). Ethereumand you cannot use an Ethereum based dApp Bitcoin. This lack of interoperability has led to isolated ecosystems within many of the major blockchain ecosystems. The desired capability for enhanced interoperability is the driving force behind enabling interoperability through multichain protocols and various other methods.
Defining multi-chain
Before we cover all the approaches to multichain, it’s worth defining multichain and related terms such as interchain And cross chain. In these contexts, the word chain is an abbreviation for blockchain. The term cross chain means the ability to migrate – or cross – from one blockchain to another. The term inter-chain is used in much the same way, meaning the ability to move between blockchains.
A portmanteau of multiple and blockchain, multichain (sometimes written multi-chain) is an increasingly popular term and refers to the ability for a crypto or smart contract to be found, used, or transferred on multiple blockchains. Multichain can also be used to refer to new blockchain ecosystem projects with a primary blockchain that can be connected to a variety of secondary blockchains.
While these three terms are often used interchangeably, multichain can also have a nuanced meaning indicating that something can initially be deployed (launched) on multiple chains simultaneously. Cross-chain generally gives the feeling of moving something from the original blockchain to another.
Multichain solutions to the rescue?
On mobile networks, communication interoperability problems are largely a thing of the past (despite the iPhone-only features). Blockchain enthusiasts are striving for the same simplicity and ease of use for inter-blockchain communication. In the following articles in this five-part series, we will explore the different approaches to blockchain interoperability, the pros and cons of various cross-chain tools, and the emergence of multichain ecosystems and tools.
Cheat sheet:
- Blockchain interoperability refers to the ability for individual blockchain protocols to interact and communicate with each other. The lack of adequate interoperability is an ongoing frustration and concern within the wider blockchain ecosystem.
- Inter-chain, cross-chain, and multichain are terms used to refer to the ability for data transfer between – or used on – different blockchain protocols.
- Emerging multichain solutions are being launched with the goal of simplifying – and simplifying – cross-chain crypto communication.