The Reason Why “CROWD” Accepts Multi-chains
CROWD provides a platform that supports various multi-chains.
Currently, the cryptocurrency network is operated based on various mainnetes. In order for cryptocurrency to be valuable as currency, transmission through the network must be possible, and its details must be distributed and stored in the blockchain.
Since Bitcoin was founded, many tokens have been traded. Among them, Ethereum’s ERC20 is the most widely used mainnet in Defi transactions such as collateral, loans, and deposits. However, high fees and slow transmission speed have been a problem in this ecosystem.
To solve this problem, the CROWD team wants to support various mainnet and sidechain on the IDO platform.
- Definition of Side Chain.
Sidechain is a blockchain network connected to major public blockchains such as Ethereum. Sidechain has the same algorithm as public chains in that it preserves transactions through chains of trading blocks, but it can use a different verification method than public chains. In addition, the sidechain also provides additional features that are not provided by the mainnet. Examples include additional storage options, authorized access, and alternative fee mechanisms.
2. The Reason Why CROWD Accepts Multi-chains.
Improving Project Performance
Running all transactions on a single mainnet can create situations in which one task prevents the processing of other tasks. Various side chains make it easier to develop decentralized apps and protocols, so their application is faster. Sidechains can separate processing and data problems.
Provide Various Services within the CROWD Platform
The flexible sidechain allows optimization according to the type of transaction. In terms of asset collateralization, specific events or types of transactions are important. In addition, other types may be important when it comes to creating a market or playing games.
Improving the Economy of the Network.
The difference between centralized and decentralized applications is transaction fees. Transaction costs are extremely low in centralized apps. These low costs are directly compared to the size of the gas cost required to complete the transaction using a public blockchain network. For example, gas fees in Ethereum can reach 5 to 10 times per transaction.
Because of these fees, it is practically difficult to include all transactions in the system on one main net. Therefore, sidechains reduce operating fees and improve economic feasibility by providing the best mechanism to separate transactions from each other. Important transactions such as asset creation or transfer will still require a mainnet. However, other transactions on the lunchpad will use Binance Smart Chain.
The next content is about the project you want to find in CROWD and the next meta that will lead the coin market. Before starting the IDO, I look forward to communicating with the participants about various projects. Thank you.