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What is Multichain (MULTI)?
Multichain basic info
What is Multichain (MULTI)?
According to their official documentation, Multichain is an infrastructure developed for arbitrary cross-chain interactions. The platform claims to be the ultimate router for web3 and offers solutions that enable nearly all blockchains to interconnect, including EVM chains like Avalanche, Layer 2 chains tied to Ethereum such as Polygon, and Parachains networks like Moonbeam on Polkadot.
Who are the Founders of Multichain?
Zhaojun is one of the co-founders and serves as the CEO of Multichain, an infrastructure designed for arbitrary cross-chain interactions.
What makes Multichain Unique?
Multichain has developed a solution to the problem of a single point of failure when transacting cross-chain. The solution involves using Threshold Signature Schemes (TSS) and splitting the security key. Multichain's Secure Multi-Party Computation (SMPC) network implements TSS Distributed Key Generation, an algorithm custom written and optimized by the engineers at Multichain. Each node in this unique selection is independent and produces part of the private key responsible for confirming transactions. By digitally signing transactions, the SMPC network can manage asset accounts and smart contracts across multiple blockchains. Multichain's unique feature, VeMulti, is the governing system for multiDAO, which rewards stakers of MULTI with veMULTI NFTs and grants them voting rights.
How is the Multichain Network Secured?
The PoS consensus mechanism secures the Ethereum blockchain on which MULTI, an ERC-20 token, is issued. Validators participate in consensus and validate transactions by staking 32 ETH.
MULTI supply and tokenomics
Uniqueness
As laid out in its official documentation, Multichain aims to solve the problem of a single point of failure that occurs when a single signature is used to send assets or interact with smart contracts cross-chain. The solution, according to Multichain, is to use Threshold Signature Schemes (TSS) and split the security key. This is where Multichain's Secure Multi-Party Computation (SMPC) network comes into play.
Multichain's SMPC network of nodes implements TSS Distributed Key Generation, an algorithm custom written and optimized by the engineers at Multichain. Each node in this unique selection works independently from the others to produce part of the private key responsible for confirming transactions. Not one of them can independently sign transactions, yet they all collaborate to do so. Furthermore, the key is never fully reconstructed during the signing process and remains safe from interception as it's kept in separate parts.
Token utility
By digitally signing transactions, the SMPC network is able to effectively manage asset accounts and smart contracts across a variety of blockchains. This comprehensive system makes it possible for users to perform countless tasks with ease and efficiency.
Cross-chain bridges are the connection between two blockchains. When an asset is to be bridged, it's sent to a special SMPC wallet address and kept safe in a Decentralized Management Account on its origin chain. On the destination chain, this triggers a smart contract that mints tokens 1:1 with those held in the Decentralized Management Account and then sends them directly into your wallet. The reverse occurs when you withdraw coins from your destination blockchain - they're burned off before SNMP nodes quickly release them onto their source blockchain again.
In addition to its unique SMPC network as described above, VeMulti is another unique feature of Multichain. VeMulti stands for vote escrow Multi and it was launched on May 9th, 2022.
As the governing system for multiDAO, VeMulti rewards stakers of MULTI with veMULTI NFTs. These holders will be capable of initiating and supporting governance proposals through their votes. The degree of rights and power are based on both your amount of MULTI invested as well as how long it is locked up in the system.
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What is the development prospect and future value of MULTI?
The market value of MULTI currently stands at $2.00M, and its market ranking is #1940. The value of MULTI is not widely recognized by the market. When the bull market comes, the market value of MULTI may have great growth potential.
As a new type of currency with innovative technology and unique use cases, MULTI has broad market potential and significant room for development. The distinctiveness and appeal of MULTI may attract the interest of specific groups, thereby driving up its market value.