Multichain projects are making an ecosystem where the power points of individual blockchains can be leveraged to form one strong unit. Imagine the Ethereum network but with the ability to scale, or Bitcoin with smart contracts. This is what the Overline Network aims to bring to the blockchain space. To understand their approach, let’s first understand the basic problem, the blockchain trilemma.
Traditional Blockchains and the Blockchain Trilemma
The rapid pace of technology evolution leaves no room for flaws and mistakes yet in the blockchain space we have seen that most of the algorithms and blockchains have huge limitations. Vitalik Buterin, the founder of Ethereum, introduced the concept of the blockchain Trilemma, which states that developers face challenges while giving the experience of all three, decentralization, security, and scalability without compromising on one of the three. This problem is solved by the concept of interoperability and multichain systems. Overline Network, a project that uses this concept, connects blockchains like Bitcoin and Ethereum to use the best of their abilities like the decentralization of bitcoin with its proof of work and the customizability of Ethereum through its Smart Contracts.
Since single protocols aren’t perfect and can be flawed in one way or another, there’s a market gap in bridging these different protocols together to form one powerful platform. Multichain ecosystems help in this regard by connecting different protocols, essentially stacking them, and using the best of their abilities.
Inspired by Bitcoin’s Proof-of-Work and its immutability, Overline designed their algorithm called the Proof-of-Distance. This algorithm requires the miners to give valid cryptographic proof that they have observed all the recent blocks issued by the networks connected to Overline. The Proof-of-Distance ensures security along with the interoperability that the platform promises.
Using their multichain approach, Overline Network has recently launched their own “Interchange” as they’re calling it. This, basically, is a trading platform that ensures a lower gas fee and is free of wrapped tokens. The best feature is the cross-chain trading capability. Another notable fact is that this interchange has no withdrawal, deposit, or trading fee that goes to the team (The only fee is the Overline (OL) fee associated with each transaction) which gives it a huge advantage over centralized exchanges which charge a lot of fees to cover their overheads. The minimal Overline (OL) fee is for the sustainability of the mining ecosystem. The miners get paid to help to execute transactions on the Overline multichain.
Unlike other decentralized exchanges, this exchange or interchange does not require third-party wallet custodial services like MetaMask. So, you are in control of all your assets. The exchange supports the trade of BTC, ETH, USDT, DAI, NEO, Waves, Lisk, OL, and EMB (Overline’s native tokens). Their ecosystem has its own app wallet named OVERLINE NETWORK which can be found on Apple’s app store as well.
The Overline Interchange can be downloaded HERE!
You can also find the step-by-step guide to set up the interchange application here!
Other Use Cases:
While decentralized exchanges are a brilliant use case for multichain networks, but these use cases can further be extended to wallets with cross-chain supports. For example, you can have ERC-20 TRC-20, and BTC tokens all in one place without having the need to make new addresses and which require no swaps or trades for transferring value from one chain to another.
Apart from that, new decentralized market places can be made which can support all tokens. Another brilliant use case is Asset management dApps where a user can manage his portfolio on his own. The team of highly competitive and innovative individuals includes the CEO, Patrick McConlogue (who has lots of experience in data science, cryptography, and engineering), Arjun Raj Rain (the President of Borderless Services Inc., (BSI) a financial technology company, and enterprise contributor to the Overline protocol) and many others are working on bringing these use cases to life.
All-in-all, each blockchain, and protocol have limitations of its own. As mentioned above, the blockchain trilemma is a very real issue for the technology which can only be catered through cross-chain interoperability through multichain implementations.