Here at Key Coin Assets, we’re confident that blockchain is the future of cryptocurrency asset management in the UK. That’s why we’re so passionate about learning all we can about it and sharing that knowledge with the world (aka you!).
However, one of the major current limitations of the blockchain market is interoperability; blockchains are isolated systems, unable to communicate with each other in any way.
To resolve this issue, many projects are working on new ways to allow for information exchange between different blockchains. This goal has been referred to as “cross-chain” technology.
However, there’s another way: creating a platform where multiple blockchains can communicate and transfer data with each other. This is known as “multi-chain” technology.
In this article, we’ll talk about what cross-chain and multi-chain technology are, how they work, and whose perspective they’re keeping in mind as they develop.
Cross-Chain vs. Multi-Chain
The end goal for cross-chain and multi-chain technology is the same: to allow for shared information and data exchange between different blockchain systems.
However, they achieve this in different ways that highlight their unique goals.
The primary goals of cross-chain technology are to allow for interoperability between blockchains, atomically swap coins or tokens between different ledgers, and provide censorship resistance.
This is done by creating a protocol for cross-chain transactions. The protocol provides an agreed-upon method of transferring information (or potentially value) across different blockchain systems without an intermediary.
Multi-chain technology requires projects to be deployed on a minimum of TWO blockchains simultaneously, such as Binance Smart Chain, Ethereum, and Polkadot. This allows for multiple chains to communicate with each other and increases decentralisation.
Cross-chain and multi-chain technology complement each other in the digital asset blockchain.
For instance, let’s say a multi-chain project in both Polkadot and Ethereum. Cross-chain will allow for assets to flow between both chains.
This means that the Ethereum chain can potentially make use of the features offered by Polkadot, reducing bloat.
In other words, cross-chain and multi-chain technology create new ways to expand blockchain capabilities.
How Can This Help You Build Wealth?
Keep an eye out for projects with the potential to implement these technologies in the future. It’s definitely early, but the potential for cross-chain and multi-chain technology to increase interoperability is huge.
The result would be something we’ve always dreamt of: a rich ecosystem of different blockchains and cryptocurrencies that can easily interact with one another. Imagine the possibilities for cryptocurrency asset management in the UK!
Invest in Emerging Blockchain Projects with Key Coin Assets
With 37 profitable ICO investments under our belt, Key Coin Assets has a proven history of helping investors like you make major returns.
Our approach is to always have our eyes on the new and exciting technologies that are being developed both on and off the blockchain.
In fact, that’s how we’re able to create our ground-breaking investment program.
Our strategies have allowed us to generate a GUARANTEED 40% ROI on investments in just 12 months.