Multichain

A cross-chain bridge, also known as a multi-chain bridge, is a technology that enables the transfer of assets and information between different blockchain networks. Multichain bridge is one such solution, aiming to facilitate interoperability between a huge amount of blockchain networks. In this article, we will explore the features, security, and benefits of Multichain bridge, as well as its limitations and a few tips from an analyst.

Multichain bridge is a decentralized platform that allows for the transfer of assets and information between different blockchain networks. This includes the transfer of assets such as tokens, as well as the ability to share information such as smart contract data.

The bridge allows you to transfer your assets through a network of nodes called SMPC nodes. Each of them exist separately from each other but in order to approve and make the transaction happen, they need to come together. The nodes are run by different organizations and individuals, meaning that the whole system is decentralized and trustless. There are two ways to use the SMPC nodes. The first is the “bridge,” which works by locking a certain asset on a smart contract, then minting another corresponding wrapped asset on a target chain.  In 2021, the project launched the “Multichain router V3 beta mainnet,” which is the second way to use the SMPC nodes. This router transfers assets by using liquidity pools that can be found on each blockchain. Multichain also has its anyCall smart contract function, thanks to which projects can make cross chain contract calls. It even offers bridges and routers for NFTs.

The security of Multichain is guaranteed in a few different ways. The main aspect is the SMPC nodes system itself. As we mentioned above, all the nodes work independently and the whole transaction is approved by the collection of nodes. Therefore, the whole process is trustless and the chance of users losing their assets is reduced. Multichain has also been audited by several companies like CertiK, Peck shield, SlowMist and more. You can read all the audits here. The team behind the platform claims that it has entered into an academic alliance with several global cryptography experts. It also has a huge bug bounty that can go up to 2 million USD in rewards, and the code is open-source. Despite this, however, the project was successfully hacked in January 2022 when multiple hackers exploited vulnerabilities of six supported assets and managed to steal more than 3 million USD worth of tokens of Multichain’s users.

It is important to mention that Multichain was formerly known as Anyswap. To date, Anyswap also still works, but the team behind the project does not provide support, nor does it solve any bugs.

• Do your own research and due diligence before investing in any cross-chain bridge solutions
• Look for solutions that have a proven track record and a strong development team
• Keep in mind that cross-chain bridges are still an emerging technology and may be subject to regulatory changes in the future

Multichain is one of the world’s most used crypto bridges. It supports a wide variety of assets and the daily transfer volumes exceed 100 million USD, which is an unbelievably high amount. Considering what it has already achieved, I believe the project has a bright future. The main question is whether the team will be able to keep up with the demands and challenges of the crypto world. One of the main topics being discussed in DeFi communities right now is the security of crypto bridges. As mentioned above, Multichain has been successfully hacked, and users lost their funds.  Nevertheless, seeing how many transactions are processed through Multichain every day, I am still willing to give it another chance to prove that it is a secure and valuable tool for transferring crypto assets between different blockchains.