Milkomeda Algorand A1 Rollup Project Spotlight: Multichain
The A1 Rollup is going to be hitting the Algorand mainnet very soon! As we count down to launch day we want to highlight some of our partners who will be launching on Milkomeda A1 and will help to accelerate growth in the early days of the Milkomeda Algorand Rollup ecosystem.
This time around we’re highlighting Multichain, a decentralized, cross-chain routing protocol that already links over 60 blockchains together! So what is Multichain’s purpose? How does the protocol work? And what does their presence on Milkomeda mean for the Algorand ecosystem?
What is Multichain?
Multichain is a blockchain interoperability protocol that has been around since July 2020 and provides cross-chain services that connect over 60+ blockchains. The Multichain protocol supports the porting of over 1100 assets between both EVM and non-EVM chains, and enables the swapping of non-native assets from one chain to another, without the asset having to return to its native chain. This severely cuts down on the cost associated with non-native, cross-chain asset transfers.
Multichain is open source and decentralized, using a network of nodes, unassociated with any single blockchain, to collectively sign transactions. They also offer custodial bridge services that don’t require there to be liquidity on both sides of the bridge. At the time of writing, there is over $2.4 billion in TVL in over 2700 Multichain bridges.
Alongside their token bridges Multichain also offer token bridges for NFTs, of both the ERC-721 and ERC-1155 standards. A DAO for users to vote and participate in the management of the community and ecosystem is currently in its fledgling state with users beginning to stake Multichain’s fungible tokens to earn NFTs which gives holders the ability to create proposals for the DAO and to partake in the voting process.
How Does Multichain Work?
The Mulitchain protocol is based on an independent network of nodes, separate from any of the blockchains the protocols it interacts with. This network of nodes is known as the Secure Multi Party Computation (SMPC) and members of the network collectively sign transactions with privately held segments of private keys to initiate the minting and release of assets.
Assets on the origin chain are locked in wallets, called Decentralized Management Accounts, that are generated by the SMPC network. These deposited assets are then mirrored 1:1 on the target chain, by assets minted by a smart contract, and sent to the user’s wallet. When assets are returned to the smart contract the SMPC network triggers the contract to burn the tokens and release the assets to the user’s wallet on the origin chain.
The private key that controls the wallets and smart contracts that manage the tokens at each end of the bridge are distributed amongst this network of nodes using a Distributed Key Generation algorithm. As a result, each node independently owns a part of the private key and knows only their part of the private key. At no time does any one entity know the whole private key. The private key is not reconstructed when signing transactions and the complete set of node-owned private keys will never appear together, meaning that the private key can never be revealed. This prevents a single point of failure from existing in the protocol and ensures both decentralization and security.
A Multichain router enables the transfer of assets between multiple chains, regardless of whether or not they are native or created by the Multichain bridge. This router utilizes liquidity pools as well as the bridged assets smart contracts to enable the highly cost-effective transfer of assets across multiple chains without having to go via the asset’s native chain.
What is Multichain Bringing to the Algorand Ecosystem?
First and foremost, Multichain is bringing true blockchain interoperability to Algorand, with connections to 60+ chains and over 1100 assets that are already in circulation across their network of more than 2700 bridges.
This opens up the Algorand ecosystem to the wider blockchain community, exposing its users and the dApps built on top of Algorand to the assets from these other chains in a decentralized, non-custodial manner. In the same manner that Multichain on Milkomeda A1 Rollup will enable the users of other blockchains to experience and use the dApps in the Algorand ecosystem, the Multichain protocol will also provide the Algorand community with a gateway to these other blockchains. A gateway where it is free for users to add assets to the protocol as a portable assets!
Interoperability Through Interoperability!
The A1 Rollup is bringing EVM capabilities to the Algorand blockchain, exposing its many users to dApps written by the thousands of developers writing in the world’s most popular smart contracting language, Solidity. Multichain is then increasing this interoperability by bringing their decentralized bridging protocol to Milkomeda.
If the thought of all this blockchain interoperability, and all the possibilities it brings to the Algorand ecosystem, makes you dizzy with excitement then make sure you check out Multichain and familiarize yourself with the wrapping and unwrapping process for assets on the A1 Rollup testnet here.
Learn more about Multichain:
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