What Is Multichain Network?
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What Is Multichain Network?

5 Min.

Multichain is a platform that bridges cryptocurrencies and NFTs across blockchains. It was formerly known as Anyswap and provides two methods for bridging: pegged tokens and liquidity pools. The Multichain Router determines the best method for the cryptocurrency you want to bridge. For coins with native tokens on multiple chains, it uses liquidity pools, otherwise, it locks up the token in a smart contract and mints a pegged token on the target chain. The platform also has its own governance token, MULTI, which can be converted 1:1 from ANY, their previous governance token as Anyswap.

Basics

Multichain is a well-known platform for bridging tokens across blockchains, making it easier to cross chains. Its popularity comes from its ability to simplify the experience for users in search of investments or yield. As projects don't yet offer their own multi-chain capabilities, services like Multichain are vital.

What Is Multichain?

Founded in July 2020, Multichain is an open-source cross-chain router protocol (CRP) that allows token bridging across blockchains. With over 74 supported chains, including BNB Smart Chain, Fantom, and Harmony, Multichain's Cross-Chain Bridges and Cross-Chain Routers enable users to transfer assets seamlessly across different blockchains.

Moreover, Multichain's governance token, MULTI, permits holders to participate in the project's forthcoming governance mechanism.

How Does Multichain Work?

Multichain utilizes two techniques to bridge tokens, involving smart contracts to lock tokens on one blockchain and mint wrapped tokens on another blockchain. In scenarios where this is not feasible, it leverages a network of liquidity pools across chains to trade bridged tokens, with processing times typically under 30 minutes without slippage.

Multichain's support encompasses Ethereum Virtual Machine (EVM) networks, as well as a variety of blockchain networks employing various technologies, such as Cosmos and Terra. Additionally, Multichain offers a comparable bridging service for NFTs, enabling projects to collaborate with Multichain to issue tokens to new blockchains. This service is free and can be completed in less than a week.

Multichain operates a network of Secure Multi-Party Computation (SMPC) nodes maintained by multiple entities to facilitate all of these functions.

Multichain's Token Bridging Methods

Multichain offers multiple methods to bridge tokens across different blockchains. The first method involves using smart contracts to lock tokens on one blockchain and minting wrapped tokens on another. If this method is not feasible, Multichain utilizes liquidity pools to trade bridged tokens across chains. The bridging process can be completed within 30 minutes without slippage.

Multichain's SMPC Nodes

To facilitate its token bridging methods, Multichain operates a network of Secure Multi-Party Computation (SMPC) nodes run by various parties. These nodes are independent entities that can collectively sign transactions, which avoids single points of failure, ensuring decentralization and security. The Multichain MPC network 2.0 consists of open nodes run by the community and partners, ensuring strengthened performance and further decentralization.

Multichain's Hybrid Approach

Multichain's original service, when it operated as Anyswap, was to use a standard crypto pegging mechanism to lock tokens on one blockchain and mint pegged tokens on another in a 1:1 ratio. However, this method cannot be used for all tokens. For such tokens, users must swap their coins, and liquidity pools provide the necessary liquidity. Other users provide their tokens as liquidity in exchange for a share of the transfer fees.

To streamline the bridging user experience, Multichain Router takes a user's request and uses the appropriate method, either through standard crypto pegging or liquidity pools. Multichain also supports the bridging of native tokens across multiple chains. Projects with native tokens on a few chains but not on others can use Multichain with a hybrid approach.

Unique Features of Multichain

Multichain stands out among the many bridges available in the market due to several unique and attractive aspects. It offers assistance to projects and users with issuing tokens across chains, making it easier to facilitate bridging.

Its trusted system for accessing liquidity across blockchains is also a significant advantage. It offers over 2,000 bridges for crypto tokens and NFTs, making it easier for DeFi protocols like SushiSwap and Curve Finance to operate securely and reliably.

Additionally, the project has received funding from reputable industry leaders and VC firms, making it more trustworthy than anonymous bridging services.

Lastly, Multichain offers a vast range of tokens and supports over 74 blockchain networks, including EVMs and non-EVMs, which is a significant advantage over other bridges.

What Is the MULTI Token?

The governance token for Multichain is MULTI, previously called ANY when the project was known as Anyswap. Users can exchange their ANY tokens for MULTI at a 1:1 ratio through the Multichain website. If all ANY holders convert their tokens, the total supply of MULTI will be 100 million. Additionally, Multichain offers veMULTI, which allows MULTI holders to stake their tokens for rewards on Multichain bridge fees. Through the veMULTI framework, holders can also participate in voting for governance proposals.

Conclusion

Multichain is striving to become "the ultimate router in Web3" by offering one of the largest selections of bridgeable tokens. Users interested in DeFi and seeking to move between networks such as Solana (SOL), Avalanche (AVAX), and Ethereum (ETH) can easily do so with Multichain.

Interoperability is essential to the Web3 ecosystem, and Multichain is increasing it, making it simpler to move between DApps and other parts of blockchain technology. Multichain's importance in facilitating this interoperability is clear, and it looks set to play a significant role in the Web3 ecosystem.

Multichain Network
SMPC Nodes
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