Blockchain has in recent times become one of the most widely adopted technologies in the world. Most industries, including the banking and financial arena, have continued to embrace the likes of Ripple to streamline their operations. They are aware of the incredible importance of blockchain in making their operations consistent, secure, and faster. Leveraging blockchain helps manage all forms of digital transactions, databases, and cybersecurity, amongst others.
One innovative aspect of the blockchain is that it is immutable. With this feature, any transaction that is executed on the network is irreversible. All transactions that are executed can be viewed using a node or explorer. Since each node has a copy of its own chain, records stored remain encrypted, making the user anonymous.
How about the level of security of blockchain? The blockchain is considered secure for all forms of digital transactions because it is based on the principles of cryptography, consensus, and decentralization. By embracing these principles, the blockchain network has been able to stay secure and deliver trustable transactions.
As the popularity of blockchain begins to spread across all industries, more innovations are jumping in to improve its interoperability and scalability. The development of cross-chain and multi-chain technologies makes it possible for blockchains to interact and exchange data with one another.
Multi-Chain Blockchain
The cross-chain and multi-chain concepts are mostly discussed as the next big thing in the blockchain space. The ideology behind these two concepts centers around blockchain interoperability. More so, blockchain interoperability refers to the establishment of a link or synergy between various networks allowing them to communicate, and exchange data and assets between themselves. With good interoperability, blockchain networks can communicate with each other eliminating limitations while expanding the possibility of decentralized applications.
In a multi-chain setting, networks are interconnected in a federated environment allowing permission access among certain entities while ensuring that each network remains independent. However, there must be a set of rules in which the blockchains must all agree to allow users to transact on them. The rules are specifically designed for security purposes, mainly to help each network maintain its respective database.
Multi-chain focuses more on privacy and security. This is due to how it helps facilitate the strong protection of data within each federated blockchain. Despite their synergy, transactions on each network are usually confidential. Another key strength of Multi-chain is how it offers parallel processing and shares computing power through various networks. Also, the multi-chain concept due to its security strength is good for the deployment of dApps. Nonetheless, the Multichain system has its shortcomings too. Some of its deficiencies are more cost and time to complete or approve a transaction.
Explaining the Cross-Chain Concept
On the flip side, cross-chain is a type of blockchain technology that interconnects numerous networks in an interoperable setting. The interconnectedness of these networks helps ensure the free flow of data and asset exchange among them. These networks work together without having to rely on a central entity or controlling system. Also, a smart contract on each network in a cross-chain setting performs special tasks and they collectively support a single-use case within an application.
Furthermore, cross-chain as an innovation helps ensure the smooth deployment of smart contracts on various networks. It also facilitates the synchronization of applications on various networks to work collectively to ensure more versatility and user-friendly features. Likewise, the cross-chain technology is more efficient in moving funds. It allows users to send and receive funds swiftly across different networks without engaging an intermediary. Meanwhile, cross-chain is more vulnerable to hacks owing to its flexibility.
Conclusion
Multichain and cross-chain are some of the top innovations in the blockchain space. However, these two are not direct rivals as they both have their respective strengths and weaknesses. Similarly, the development of the two innovations will definitely go a long way to determine the future of the blockchain. Therefore, more efforts to improve the state of the two will further advance the state of the blockchain and encourage more onboarding.Â
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