Do you ever feel like the crypto world is a desert with no connecting roads? There's an Ethereum oasis, a Solana settlement, and a whole bunch of other blockchain outposts - all with their own rules, but no easy way to trade between them?  

Well, that's what the fragmented multichain world is like: multiple blockchains existing independently. Cross chain technology is like an expressway that connects these outposts, and ARMswap is one of them.  

Today, we'll discuss the key differences between multichain and cross chain approaches in the blockchain ecosystem, and explore how ARMswap is bringing the best of all crypto worlds together: 

Cross chain Vs. Multichain: What do they Mean? 

Simply put, cross chain technology allows users to directly interact across blockchain networks. Multichain technology, on the other hand, requires projects to deploy independently for each blockchain.  

Since blockchains operate with their own set of rules, smart contracts, and liquidity, multichain solutions allow for the same to continue but cross chain solutions rely on bridges and interoperability protocols to facilitate interactions across the blockchains. 

Core Differences Between Cross chain and Multichain 

Let’s discuss the core differences between the cross chain technology and multichain technology: 

Ok, so now we know two types of solutions are being implemented on decentralized applications in the DeFi space. But why do they matter? 

• Interoperability: With cross chain technology, you are prioritizing enhanced interoperability as they allow you to move assets across the blockchain. The problem, however, is that this system exposes your assets to security risks as bridges are vulnerable to hacks. 

• Accessibility: Multichain expansion allows you to increase accessibility as you have to deploy separately across all decentralized applications in the blockchain networks so you can target more users and assets. But they also create liquidity fragmentation because you are required to split liquidity pools across the networks. 

Think of it this way, the decentralized world is multi-chained but it comes with no easy way for blockchains to connect smoothly or interact with each other. Cross-chain technology makes this world interconnected by building a bridge to facilitate communication across it. 

ARMswap’s Approach to Cross-Chain and Multichain 

ARMswap has adopted a multi-faceted approach towards cross-chain and multichain interoperability. Our focus is on simplifying the process for users to increase reach and expand the crypto ecosystem. Here's how we are making it happen: 

• Support for Multiple Blockchains: Armswap is currently supporting 31 blockchains and their native coins. The platform also has plans to bring 20 more blockchains to the panel before the end of 2025. 

• Focus on Security: ARMswap is currently implementing Hardware Security Modules (HSMs) to protect your transactions. The platform also has plans to upgrade the security layer with Secure Multi-Party Computation (SMPC) in the next version that will allow you to experience an even higher level of security. 

• Investment and Earning with Liquidity Pool: In an effort to expand the crypto usage, ARMswap is rewarding you with a share of total swap fees along with free ARMSP tokens for adding liquidity to the liquidity pools.

 Final Words 

and that’s all. We hope this article cleared up any confusion for you. While the multichain world offers you a wide range of blockchains, cross chain technology brings you a way to communicate across them. ARMswap is here to connect these ecosystems and help unlock the full potential of DeFi.