A multichain refers to an application or cryptocurrency asset that operates or exists across multiple blockchain networks, enabling interchain communication and asset transfer without centralized bridges.

Multichain Meaning

A multichain is an application designed to operate across isolated chains, allowing them to communicate with each other.

What is a Multichain?

Blockchain technology, while innovative, faces a challenge: each blockchain is an island unto itself. This isolation limits the potential for innovation and the utility of digital assets. A multichain, or multichain application, is a decentralized application (dApp) that is deployed on more than one blockchain network, enabling interaction and asset transfer across different chains without relying on bridges—thus mitigating security risks.

Moreover, a multichain cryptocurrency asset is one that exists on multiple blockchains. For example, a stablecoin like Tether (USDT) can be found on Ethereum, EOS, Solana, Tron, and Liquid Network, making it a multichain asset.

How Multichain Technology Works

The core of multichain technology lies in its layered structure:

By enabling transactions and the exchange of data and assets across various chains, multichain technology enhances scalability, functionality, and efficiency within the blockchain ecosystem.

Multichain Vs. Cross Chain

While multichain and cross-chain technologies may seem similar, they differ in their approach. Cross-chain technology uses smart contracts to create ‘wrapped’ versions of a cryptocurrency for use on other networks. In contrast, multichain technology weaves an interconnected network of blockchains, facilitating direct, secure interactions.