Bitcoin has got recognition as an international digital currency existing on virtual space/Internet only. It is getting trust and recognition among the masses. The blockchain is the technology behind Bitcoin like Cryptocurrency. However, Blockchain has multiple usages other than Cryptocurrency, and multi-chain fork of Blockchain technology is an ideal example of it.
Generally, Blockchain technology by default existing as public peer-to-peer network activity, but with desired modifications, its private existence is possible. To get a better understanding of two different terms, private Blockchain and multi-chain, we must have a perfect understanding of Blockchain technology and its fundamentals. So, let’s know the Blockchain first.
What is Blockchain?
- It is a kind of distributed digital ledger shared across the P2P network.
- It contains data related to digital transactions like IP addresses of participants, history, and time stamp.
- It works on the principles of cryptography where public and private keys are essential to validate the transactions and encryption makes it secure upon data exchanges.
- P2P network is operated by a group of identifiable and verifiable participants.
- Data or record belong to an asset, which is anything that can be owned or controlled with an aim to produce value.
- The asset may be tangible or non-tangible, and its value may be in any unit used in real world.
Difference between Public and Private Blockchain Networks
With these points in mind, we can understand the difference between private and public Blockchain concepts and practices prevailing in the real world.
|Public Blockchain||Private Blockchain|
|No one has any direct or indirect control over the information flow.||It is operated and controlled by an organization or a group like supply chain or a multinational company for privately held business purposes.|
|Validation takes place in a transparent manner and by a peer-to-peer network.||Information or Metadata is available only to restricted members for restricted data only.|
|No central authority exists, and no one can change the protocol or record once it gets validity.||Transparency is limited and validity process also under control. Therefore, several trusts and security issues persist in the system.|
|Value of assets, history of transactions, and time stamp like Metadata are visible to all that brings full trust and transparency.||Transactions are faster due to limited members and a pile of data.|
|Due to mining and validity processes, transactions are a bit slow but quite faster compared to traditional financial/currency systems.||Mixing of public and private Blockchain networks is a possibility.|
Understanding Multichain Technology
Now, with these clarifications, let’s go to comprehend multi-chain technology.
- Multi-chain Blockchain network consists of multiple Blockchain network at a time with configurable blocks. The co-existence of multiple Blockchain networks provide unique benefits where some private and some public Blockchain networks tie knots.
- It takes place in between selected participants defined and controlled by a private group.
- The process of mining is safe, faster, and cost-effective for the entire network and miners too.
- The process of hand-shaking takes place when nodes connect with each other using a list of permissions. It makes the entire network secure and safe in all aspects.
- Only an identifiable set of entities are carrying mining activities, and transaction fees and incentives are null by default.
- APIs used in the multichain network to support private Blockchain functionality and integration of public Blockchain network.
Expected Improvements in Multichain Technology
Some are expected features and functions need to integrate into the multi-chain roadmaps, such as:
- Messaging in Blockchain
- Exchanges/transactions in distributed or decentralized multiple networks
- Synch of existing databases on a distributed network
Applications of Multichain Technology
There are various deployment scenarios of multichain Blockchain implementations, but we will explore only limited use cases here.
Supply chain Scenario:
Today supply chain is expanded across the globe and becomes an intricate system to deal efficiently with traditional management and computerized software system.
Therefore, tech-savvy management is looking for advanced and effective solutions to create a traceable chain of tangible and non-tangible products. It also is to verify its authenticity by getting a detailed history.
It uses multichain Blockchain network to accomplish various core and peripheral activities including a record of product manufacturing, warehouse stocks, supplier stocks, retailer stocks, customers who bought the products, and transactions made by all involved parties using the Cryptocurrency Blockchain integrated into the network of multichain.
Lightweight Consumer Wallets:
In the real-world business scenario, various incentives are offered to end users or customers passing through a tunnel of suppliers, stockiest, and retailers. Therefore, two kinds of Blockchain activities take place in a private supply chain & multichain network. Core activities between trusted and established members of supply chain and peripheral activities with one-time or loyal customers at the end portion of the chain.
To propagate and sustain the consumer awards, lightweight wallets are the easy and secure solution to implement using multichain Blockchain technology. By creating and installing mobile wallet app, any supply chain or organization/enterprise can provide excellent marketing opportunity using the existing mobile technologies and networks.
There are immense possibilities to leverage Blockchain technologies with multichain implementations using the existing and advanced mobile app technologies. If you are inclined to integrate your advanced mobile applications with Blockchains like emerging trends and technologies, Perception System is a right spot for you to land and explore the real talent, infrastructure, and offerings.