Preface – This post is part of the Blockchain Basics series.
Table of Contents
Multichain is off-the-shelf private blockchain platform developed primarily for institutional financial sectors. It provides privacy, openness and control to the network administrator (that can be either miner of the first “genesis” block or a predefined miners set as Admin by previous Admin). Multichain has published a whitepaper to discuss the underline technologies; you can read the Multichain Private Blockchain Whitepaper here. In this article we will explore the Multichain Introduction with some of its use cases.
How Multichain Works
In a Multichain bases blockchain network, the administrator grants privileges to other users in the network. The mining (block validation) in a Multichain is just like a round robin schedule, which means each miner/user in the network must create blocks in rotation to generate an authentic blockchain.
Multichain Use Cases
Multichain is one of the widely used blockchain technologies that are being utilized by enterprises and small industries. Following are some of the accepted use cases by Multichain:
- Centralized Currency Settlement System
This is a very generic use case where all the currency exchange system can be scrutinized under blockchain methodology.
- Bond Issuance System
Issuance of bond in a systematic manner becomes a tedious job. Multichain can become a secure solution to this problem.
- Peer-to-peer Trading System
Stock trading is not a peer-to-peer system but it can be like bitcoin trading system. This can be easily achieved with the help of Multichain.
- Consumer facing reward scheme
It is also a generic scenario where blockchain can be used to win trust and bring fair results in the reward scheme.
Merits of Multichain Blockchain
Multichain Introduction on top of Bitcoin brings following merits:
- Unlimited capacity
- Very less or no transaction cost (based on subscription)
- Relevant Data storage
- Reduced Mining risks
- Higher privacy features
Demerits of Multichain Blockchain
Although Multichain provides additional features on top of Bitcoin and is better than many permissioned blockchain technology, still it comes with following demerits:
- No support to smart contracts
- Typical consensus mechanism