What is Multichain? A detailed overview

Multichain blockchain has advanced blockchain technology and it has made it more convenient for enterprise applications: Read on to find more.

What is Multichain Blockchain?

Multichain blockchain is a blockchain platform that is open-sourced and created to build the blockchain application that can work within the organisations or between the organisations. These blockchains are private and can be used by organisations for running financial transactions.

The objective of the multichain blockchain is to keep the visibility strictly between the chosen participants, besides ensuring stability and control over the transactions. It provides convenience in the mining process with the help of proof of work along with control of the costs associated with it.

The platform provides a simple API and a command-line interface that are well-suited for Financial transactions. The comprehensive set of features in-built into the multichain blockchain includes permission management, native assets, data stream, and simple per chain configuration. These applications make it pretty suitable for enterprise-wise applications as it provides scalability, confidentiality, and compliance.

Multichain blockchain is a relatively lightweight private network that is easier to deploy and maintain, and the tools inside the network are developer-friendly as well as flexible. It also allows the use of various programming languages. On the network, native tokens, that is the assets of the network, can be created and transferred between the users.

Multichain is an off-the-shelf network that mirrors some of the Bitcoin features, which it achieves by extending the Bitcoin API and Bitcoin platform, thus making it compatible with a vast array of tools and open-source platforms meant for Bitcoin. Nodes on the network only need to be connected instead of being uniform. What this essentially means is that all the participating systems become part of a multichain blockchain network, whether they are within one organisation or they are between different organisations sharing the same database of transactions.

How does Multichain work?

Multichain takes place when the two blockchain nodes connect on a peer-to-peer network. The identity of each node is represented by an address with a list of permissions. Therefore, each node sends messages to other users, and if they do not receive any satisfactory results from the process, the peer-to-peer connection aborts. This process of two nodes connecting with each other to form a multichain blockchain is termed handshaking.

How does Mining happen?

Mining is done by a group of network admins using a distributed consensus mechanism. The miners are identified by multichain blockchain through an identifiable set of entities, and a criterion of mining diversity is introduced whose value is kept between 0 and 1. The following is done to verify the efficacy of a block.

  1. Applying the changes in permissions set by transactions and blocks respectively.
  2. Arrive at the total number of approved miners after the changes.
  3. Multiply the number of miners with mining diversity and round up.

The transaction costs and block rewards are nearly zero, and the miners’ reward is the smooth functioning of the blockchain. The miners can get paid in the native currency in exchange for tokenized assets, though.

Listed below are the distinct features of multichain blockchain:

Permissions:

The permissions to access the network in multichain are created by network admins, usually, it is done by default by the developers. The in-built features in the platform allow the developers to customise the network to match parameters like mining diversity, consensus mechanism, mining rewards, access permissions, the privacy of the blockchain, etc. Granting and revising the permissions in multichain is done by using network transactions having specific data.

Streams:

Streams are private shared databases on the multichain blockchain network, and they can be used for accessing and retrieving data, time stamping, and archiving. Streams are collections of data items and each item contains a timestamp, digital signature, and an optional key retrieving the data. The streams can be open i.e. can be written by anyone. It can also be closed or open only to selected users.

Assets:

The native tokens of the blockchain are known as assets, multichain blockchain allows the creation and tracking of native assets at the blockchain level. Every node verifies the number of assets in the blockchain

Scalability:

Multichain blockchain uses dual chain data storage methods. What that essentially means is that every bit of published information can be on the chain, or it could be off the chain as desired. The data is not replicated at all the nodes like other blockchains. The decryption key for the dataset is shared with only those users who are meant to see it. Owing to this, Multichain blockchain can handle up to 2000 transactions per second. 

Conclusion

Multichain blockchain has updated the blockchain technology for use by enterprises with distinct features such as scalability, a faster transaction speed, and the facility of interconnected blockchains. These features make multichain blockchain apt for financial transactions, and it is being adopted by banks and financial institutions. So if you are looking for a seamless blockchain experience that can be deployed by the enterprises at a higher transaction speed, log on to Zebpay and start your journey on Multichain.

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