Back
2021-11-16 09:46:26
WHAT IS BLOCKCHAIN?

The market capitalization of the cryptocurrency market as a whole has reached over $1.9 trillion. An ecosystem once defined by its tight-knit community and exclusivity is now available to governments, businesses, institutional investors and individuals who are becoming more active in the space. developing time. Multi-chain refers to the feature of a wallet that interacts with many different blockchains, allowing for diverse D-app integration of many blockchains on the same wallet application. To understand this better, we need to go from the root of what blockchain is.

 

I. What is Blockchain Technology?

In the wave of industrial revolution 4.0, Blockchain is considered a "key" technology for digital transformation and building the future information technology platform. According to experts, blockchain is a technology to store and transmit information using blocks that are linked together and expand over time. Each block contains information about the initialization time and is associated with previous blocks.

Blockchain is designed to resist data change. Information in the blockchain cannot be changed and can only be added when there is a consensus of all nodes in the system. Even if part of the blockchain system falls, other computers and nodes will continue to work to protect the information. In particular, blockchain has the ability to transmit data without requiring intermediaries to confirm information. The blockchain system consists of many independent nodes capable of validating information.

 

II. Applications of Blockchain in life

With the ability to share transparent data information in real-time, save storage space, and high security, blockchain technology is one of the breakthrough technology trends, capable of application widely in many industries and fields. According to experts, this technology opens up a potential application trend for many fields such as banking and finance, retail, freight, manufacturing, and telecommunications. However, the current biggest application trend in the world as well as in Vietnam will be in the financial, banking and internal audit sectors.

In the field of freight, with this technology, an importer can share information for many units in the same built network. For example, when goods are transferred from US customs to Vietnam customs when the goods arrive, all members of the blockchain network can track the status of the goods and know the specific arrival time. In the field of retail or agriculture, blockchain will serve effectively for traceability to know where products and goods are imported and manufactured.

 

III. What is multi-chain?

Multi-chain is a term that means "multi-chain, cross-platform". More specifically in the crypto market, if a project is deployed on a multi-chain, it means that the project is being deployed on at least two chains, which can be Ethereum, Binance Smart Chain, Solana, Polkadot, Avalanche or other blockchains.

To put it simply, Multi-chain is a feature that allows the same e-wallet application to integrate a variety of wallet addresses from many different blockchains. Following that is the integration of D-apps of many different chains that only need to install a cryptocurrency wallet once. Users will experience the convenience of interacting with D-app and wallet through transactions without logging in, opening and closing many confusing and confusing apps.

 

IV. What are the benefits and implications of Multi-chain?

When implementing the Multi-chain mechanism on projects, not only users but also projects will enjoy the following benefits: Access to a new ecosystem of users. Overcoming the main chain's shortcomings (congestion, slow speed). Take advantage of many different chains (cheap fees, fast speeds). Popularize your token on other ecosystems (especially stable coin projects). Users in smaller ecosystems can access areas that their ecosystem has not implemented (Insurance, Index token,...).

For more information about multi-chain: https://nekoinvest.io/en/blogs/what-is-multichain-

 

V. What is cross-chain?

Cross-chain is a solution to help transfer crypto assets, tokens from one blockchain to another, to optimize interoperability between blockchains. The reason Cross-chain was born is that each blockchain network has a different structure, so the protocols for them to transfer assets between each other are very limited. With the advent of Cross-chain, any coin created on blockchain A can easily be converted to blockchain B. This also means that you can use ETH to pay anywhere. only accept BTC with this technology.

 

VI. Advantages of Cross-chain

Increased interoperability: Cross Chain makes it possible for blockchains to interact with each other. This back-and-forth can help combine the strengths of each platform to deliver a complete blockchain solution.

Improve efficiency: Bitcoin can be widely used in Ethereum DeFi protocols without any barriers. This means that a large amount of liquidity can be easily created and moved in different blockchain platforms.

Increase practical application: When blockchains can interact with each other easily, exchanging between coins will become simpler than ever.

For more information about cross-chain: https://nekoinvest.io/en/blogs/what-is-crosschain

 

If there are any questions, please feel free to join our community for further discussions about Crypto/Neko Wallet with our team and other members!