Multichain (MULTI) is a decentralized blockchain-based cross-chain ecosystem. The network combines a high-performance, non-custodial, DEX with cross-chain interoperability. The system enables anyone to conduct cross-chain swaps across any blockchain that uses the ECDSA or the EdDSA as its signature algorithm. This list includes some of the biggest projects in the market such as BTC, XRP, LTC, BTC, ETH, USDT, and many more.
Multichain launched under the name Anyswap in July 2020. The goal of the project is to provide more interoperability to the fractured market and support further DeFi (decentralized finance) adoption. The network’s flexibility and low costs have helped it to remain a popular project.
History of Multichain (MULTI)
In July 2020 Multichain entered the market under the name Anyswap (ANY). The network was founded by Dejun Qian. Despite its young age, Multichain has managed to make some powerful partnerships and expand its user base. The protocol integrated with Shiden Network which operates as a dApp hub within the Polkadot ecosystem. Multichain continues to obtain support from industry professionals. Notably, the project raised $60 million during its last private funding round. The round was headed by Binance Labs.
On December 16, 2021 Anyswap officially announced the rebranding to Multichain.
What Problems Does Multichain (MULTI) Solve?
Multichain targets some pain points in the market. The protocol helps to fight centralization through its bridge protocols. Multichain eliminates the need for middlemen when conducting chain-to-chain transactions. This strategy saves traders on transactions fee and delays. It also helps to protect users’ privacy and improves security.
High Fees
Anyone who has ever used an AMM (Automated Market Maker) can attest to the hidden fees paid due to slippage. An AMM differs from a regular exchange in that you trade against smart contracts. There are some advantages to this approach such as added privacy. AMMs were born out of a necessity to create exchanges without using centralized order books. The concept was pitched during an Ethereum meetup and caught the attention of Vitalik Buterin who endorsed the concept.
While AMMs are great for decentralized trading, slippage is a concern. Slippage is a term that describes the difference in price that you pay from when you executed the trade until when it finalizes. Sadly, most popular AMMs are notorious for slippage fees. Multichain eliminates the hidden cost associated with AMMs by leveraging two distinct systems, SMPC and TSS Key Distribution. The Secure Multi-Party Computation (SMPC) Multichain network of nodes, whose goal is to implement the TSS Distributed Key Generation used by the network to provide privacy.
Benefits of Multichain (MULTI)
One of the main advantages of Multichain is that traders can now enjoy a more streamlined experience with zero slippage. By enabling diverse blockchains to communicate with each other Multichain empowers developers and users to create more powerful Dapps. Currently, the network shows support for 6 popular networks including Ethereum, Binance Smart Chain, Huobi ECO Chain, Fantom, Polygon, and Fusion.
How Does Multichain (MULTI) Work
Multichain helps to facilitate cross-chain token swaps and decentralized trading in multiple ways. The platform was built from the ground up to meet Fusion protocols standards. Fusion provides the market with a complete ecosystem of decentralized applications that enjoy full interoperability. The goal of the network is to drive innovation. Multichain provides users with the infrastructure needed to conduct frictionless cross-chain data and value swaps leveraging an automated pricing and liquidity system.
Liquidity pools like this are a popular feature on DEXs nowadays. They first came about with the launch of Uniswap. The main advantage of these network smart contracts is that they enable anyone to secure APYs without risking losing their original asset. They also enable startups to access funding without gatekeepers.
Multichain Router
The Multichain Router is the primary product offered by the group. This protocol makes it simple to swap between any two supported chains freely and affordably. Using the Multichain Router, developers will now be able to leverage the best aspects of each network in their creations.
Liquidity Pools
The liquidity pools used in the Multichain network provide programmed pricing and liquidity. Anyone can access public funding by adding liquidity into swap pairs. Liquidity pools are a great way for startups to secure access to global investment capital without breaking the bank.
Multiswap Exchange
Users can enjoy non-custodial trading activities using the Multiswap exchange. This protocol protects your privacy by never requesting any sensitive information. Instead, you just need to link your compatible wallet. MetaMask is a popular option that has support from the project.
MULTI
Previously the token symbol used was ANY, after a rebranding MULTI became the main utility and governance token for the Multichain system. MULTI token holders can secure passive returns by staking their tokens on Fusion. MULTI tokens come in many different formats. Currently, there are MULTI tokens on Ethereum, Binance Smart Chain, and Fusion. Traders who hold ANY also gain access to the distributed governance system. You gain more voting power when you hold more MULTI tokens.
Multichain Wallet
The Multichain wallet makes it simple to control, protect, and monitor your digital assets. The wallet is non-custodial in nature so you’re never separated from your crypto. Additionally, it’s free to download and use.
Bottom Line
There continues to be a strong drive to help and eliminate all of the compartmentalization going on in the crypto market. It makes no sense for the same protocols to be built in different formats across multiple networks when a developer should be able to integrate the best aspects of each network when needed. This desire is what continues to make Multichain an interesting project to follow.
