Leveraging Multi-chain Systems for Enhanced Brand Protection and Efficiency
Multichain systems are a newer generation of blockchain technology that offers improved scalability, interoperability, and customizability compared to traditional single-chain systems. They allow for the creation of multiple blockchains that can operate simultaneously, each with its own unique features and capabilities.
This enables businesses to tailor their blockchain applications to suit their needs, increasing efficiency and productivity. This article will delve into the benefits of multichain systems, exploring how they can help businesses overcome the limitations of traditional blockchain platforms.
Why Businesses Are Cautious About Embracing Blockchain Technology
Businesses often hesitate to embrace blockchain despite its potential for decentralized markets, quick cross-border payments, and real-world asset tokenization. A recent statement from SEC head Gary Gensler captures the prevailing view that Bitcoin is primarily a speculative and volatile asset associated with illicit activities. This perception, common among average US adults, contributes to business apprehension.
Security concerns further amplify the hesitation. Monthly reports of hacked decentralized finance (DeFi) smart contracts raise alarms, as such incidents can result in direct customer fund losses. Security audits, while costly, do not guarantee foolproof protection, making the risk of malicious actors compromising user bases a genuine threat. This poses challenges to customer retention and brand reputation.
Also, the complexity of blockchain terminology, including terms like 'gas fees,' 'transaction signing,' 'wei,' and 'blocks,' creates frustration for users seeking to invest or engage in a brand's marketplace. This lack of understanding leads to potential social engineering attacks and hinders user participation in blockchain-based activities.
Multichain Systems: A New Frontier in Blockchain Security
Securing blockchain applications poses a dual challenge, encompassing both user-facing issues and concerns regarding the trustworthiness of underlying blockchains due to potential hacking risks. Also, businesses grapple with uncertainties related to auditors' evaluations of smart contracts, given the inherent risk involved.
Enterprises may find a solution through multichain systems like Avalanche, allowing them to establish blockchains with customized rules, permissions, and user roles. This capability empowers companies to shape their own regulations. For instance, they can limit transaction participants and specify allowable actions within the network to thwart smart contract attacks.
Precompiles that enforce permissions and roles add an extra layer of security, preventing users from executing specific transactions, such as contract deployment or transfers, according to the business's preferences. This approach enhances security measures for enterprises operating within the blockchain ecosystem.
Multichain systems also facilitate network interoperability, enabling users to avoid asset confinement within application-specific blockchains. Companies gain the flexibility to create bridges connecting their networks with others, enhancing overall security in the operational landscape.
Are Blockchains Scalable?
The scalability of blockchains is a feasible prospect. Recent advancements like ZK-rollups enable L2 blockchains to bundle transactions off-chain and present them to the underlying L1 blockchain in a compressed form. The L1 blockchain then verifies their validity using zero-knowledge proofs, significantly boosting throughput while maintaining the security provided by the layer-1 networks.
Yet, scalability is not limited to this method alone. Multichain systems empower us to adjust the time it takes for a block of transactions to be included in the chain, enhancing throughput and facilitating nearly instant operations. Development teams can tailor transaction speed parameters according to their specific needs.
Furthermore, Avalanche introduces a distinctive consensus mechanism, employing sub-sampled voting to validate transactions. This approach ensures minimal transaction latency, surpassing the capabilities of most L1 and L2 blockchains.
Multichain Systems Benefits
Enhanced Scalability: Multichain systems allow for workload distribution across multiple interconnected chains, enabling more efficient processing of a higher volume of transactions. This scalability enhancement can pave the way for blockchain applications to handle large-scale adoption and real-world use cases.
Improved Interoperability: Multichain technology facilitates seamless communication and data sharing among blockchains, regardless of their specific features and capabilities. For instance, the Polkadot platform is a notable example of a multichain network that connects different blockchains, enabling them to interact and transact effectively. This interoperability fosters collaboration, synergy, and innovation across various sectors, promising a more interconnected and efficient ecosystem.
Customizable Blockchain Applications: One of the remarkable advantages of multichain technology is its ability to create optimized blockchain applications tailored to specific needs. Developers can design blockchain networks with features and capabilities optimized for their intended use cases. Furthermore, multi-chain technology enables the creation of interoperable decentralized applications (dApps) that can function seamlessly across multiple blockchain networks. This means that users can access different dApps without switching between various blockchains, significantly improving the user experience.
Control Over Permissions: MultiChain uses cryptographic properties to restrict blockchain access to a list of permitted users, ensuring that the blockchain's activity is only visible to chosen participants and introducing controls over which transactions are permitted.
Security: Each private key has a mathematically related public address representing an identity for receiving funds. Once sent to a public address, those funds can only be spent using the corresponding private key to "sign" a new transaction. In this sense, access to a private key is equivalent to ownership of any funds it protects.
Cross-chain Technology: Cross-chain technology can realize the connection between different blockchains and realize the functions of information interaction and value transfer to form a chain network and achieve the purpose of interconnection. Through cross-chain technology, transactions can be transferred, thus enhancing data processing efficiency.
Real Word Use Cases of App-Specific Blockchains
Here are some real-world use cases of app-specific blockchains:
Brave Browser: Brave is a modern browser offering a secure, fast, private browsing experience. It blocks all ads using an in-built ad-blocker and tracks user activity to protect privacy. This browser operates faster than other popular ones because of the absence of ads and trackers. Brave is also exploring monetizing ad blocking using utility tokens and testing advertising using blockchain technology.
Factom: Factom is a blockchain-based data security and storage solution. It provides transparency, honesty, integrity, and security to systems, particularly those dealing with critical commercial, governmental, and non-profit data. The Factom software is pluggable to existing systems, eliminating the need to create or rebuild systems from scratch.
Remme: Remme is a cybersecurity blockchain project to improve the security standards for users and companies, protecting their data from unauthorized access. It assists organizations with critical infrastructure, MedTech, and crypto exchanges handle cyber threats. It automates common attacks such as Brute Force, Phishing, Keylogging, and Password reuse attacks.
SimplyVital Health: SimplyVital Health is a blockchain solution that connects patients and providers. It is a health data management solution that uses machine learning and algorithms to provide the best possible solutions. It works for private providers, hospitals, and health systems. One of its key components is the Health Nexus, a HIPAA-compatible protocol that can connect healthcare data and patient control.
Abra: Abra is a mobile cryptocurrency app that allows users to store, invest, and buy cryptocurrency. It supports 25 cryptocurrencies and provides a secure and user-friendly platform for users to manage their digital assets.
Aeternity: Aeternity is a scalable smart contract interface that enables organizations to work with real-world data. It provides unparalleled global scalability, efficiency, and transparent governance. Its smart contracts are Turing complete, and consensus is achieved through a new consensus algorithm that combines Proof-of-Work and Proof-of-Stake.
Samsung SDS: In partnership with the South Korean government, Samsung SDS is working on creating more transparent government services. This initiative aims to improve three major societal components: public safety, welfare, and transportation.
Yours: Yours is a social network where members can post content and earn payment in Bitcoin Cash. It's a platform for knowledge and idea sharing where members are compensated for their contributions.
In conclusion, blockchain technology has the potential to revolutionize various industries, and multichain systems offer a unique solution to the challenges businesses face. By providing a flexible and secure framework for building blockchain applications, multichain systems can help overcome the limitations of traditional blockchain platforms. With their ability to enhance scalability, improve interoperability, and provide customizable blockchain applications, multichain systems are poised to play a crucial role in the future of blockchain development. As the technology continues to evolve, we can expect to see even more innovative use cases emerge, further solidifying the position of blockchain as a game-changer in the world of technology.