Interoperability is an essential feature in the future of the blockchain. So, it only makes sense that emerging blockchains like Solana support multichain functionality.
In this article, we take a look at whether Solana is multichain and what this means to you if you’re interested in Solana investments.
Is Solana Multichain?
Yes. Solana (SOL) is multichain, and also supports multichain functionality.
Wormhole is an excellent example of a multichain protocol. It is a secure and decentralized bridge that connects Solana to Ethereum.
It enables you to move assets by locking up funds in the primary blockchain and then minting new tokens in the secondary blockchain.
In the case of Solana and Ethereum, ETH in the primary blockchain is locked as collateral and an equivalent amount of assets is issued in WeETH on the secondary blockchain.
Multichain support allows Solana, Ethereum, and other Layer 1 blockchains to become interoperable. For that reason, you can transfer tokens, NFTs, and other assets across from Solana to other blockchains and vice versa.
Learn more: Is Solana A Layer 1 Or 2?
What Is Multichain?
Multichain is an open-source inter-chain protocol that offers seamless networking and exchanges for cryptocurrencies and Non-Fungible Tokens (NFTs) for free.
Launched in 2020, Multichain enables investors to move assets via its cross-chain routers and bridges. It uses liquid pools or pegged tokens to trade coins across blockchains.
MULTI depends on the Secure Multi-Party Computation (SMPC) nodes to safeguard the network.
Although independent, the SMPC nodes make joint signing on every transaction. The nodes are under the management of different investors and institutions who get rewards for participating in enforcing its proper functionality.
MULTI employs a Distributed Key Generation algorithm, ensuring every single node holds a part of the private key. It fosters performance, security, and decentralization.
Multichain also has a token called MULTI, which lets users participate in in-house governance projects on the blockchain.
Multichain has a total coin supply of 100 million and holds a standard exchange rate of 1:1 against ANY. There are only 18,639,320 ANY coins in circulation, and the remaining 81,360,680 are under lock-in smart contracts.
Multichain uses intelligent contracts or a network of liquidity pools to move coins across networks. Tokens get locked on a single blockchain and create new tokens on a different blockchain.
Today, over 40 chains work with Multichain. It takes up to 30 minutes with perfect conditions to swap coins. Excellent examples of blockchains using Multichain include Fantom and Binance Smart Chain.
Advantages of a Multichain
- It gets profound support from VC institutions and credible industry leaders.
- It gives investors a variety of tokens.
- It offers more than a 1:1 inter-chain bridging.
- It makes it easier to find transferable tokens.
How to use Multichain
- Launch the Multichain website.
- Maneuver to the Routers section.
- Click on the Connect Wallet to take you to your wallet. Ensure you’re linked using the BNB Smart Chain.
- Pick BNB Chain as your bridging network.
- Choose BUSD as your sample token for the bridge.
- Pick Solana USDC as the network you’re shifting to.
- Insert the amount to bridge
- Click on Swap and confirm the transactions in your wallet.
Is Solana An ETH Killer?
Yes. Solana is one among several potential Ethereum killers.
As of this writing, Solana has various features that have the ability to outperform Ethereum in the Future.
At just about 400ms, Solana has the fastest block time in the industry compared to ETH’s 10 seconds. However, with the upcoming launch of Serenity ( or ETH 2.0), this change, as ETH 2.0 will offer 100,000 TPS.
Also, there is an increase in decentralized applications and smart contracts built on the Solana blockchain. Today, over 500 dApps and services run on Solana. Although slightly behind Ethereum’s 3000+ dApps, it’s a worthy contender in the future.
Solana employs Proof of History and Proof of Stake, unlike Ethereum, that’s currently running on Proof of Work, which isn’t eco-friendly.
Solana has no cap on its coin supply. An open coin supply means Solana has endless potential in the future. Depending on the adoption of the blockchain, Solana can compete with Ethereum.
Learn how another major crypto, Cardano, fairs against Ethereum.
Who Is Ethereum’s Biggest Competitor?
Today, Bitcoin (BTC) is the biggest competitor of Ethereum.
Bitcoin, also known as digital gold, has a better market price, larger market capitalization, and participants. However, the competition isn’t over if Ethereum keeps evolving. Compared to BTC, Ethereum offers more scalability, which is Bitcoin’s nightmare.
Is Solana A Good Investment?
Yes. Solana is an excellent investment.
Solana has excellent perks to offer its investors. With continued blockchain growth, there are few disadvantages to having Solana in your portfolio.
At this writing, SOL ranks 9th best cryptocurrency, and it trades in enormous volumes.
Solana is a layer-1 open-source blockchain for developers to build decentralized applications or NFTs.
Also, the SOL network charges low fees while delivering awe-inspiring speeds of 65,000TPS. Over 500 applications and services on the Solana blockchain work in real-world cases. Great examples of these dApps are Wormhole and Audius.
Even with the recent market volatility, the strong fundamentals of the Solana ecosystem have held it in place. If you’re seeking to get some SOL into your portfolio, this is a good time while its market price is low.
Which Coins Are Multichain?
Various coins work under Multichain properties. These are coins that can swap across bridges in the cryptocurrency industry. Here are some coins which are multichain:
- Polygon
- BNB Smart Chain
- Solana
- Polkadot
- Cardano
Final Thoughts
Solana is a multichain blockchain, and you can bridge it with other blockchains like Ethereum. Certainly, Solana makes an excellent Ethereum killer, but that remains to be seen after the Serenity update is complete. However, Solana is an excellent option for investors looking to enter the crypto world of crypto.
