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When a project wants to launch a new token in the cryptocurrency space, it wants as many people as possible to get in early. Typically, there are two options, the first is a cross-chain presale, and the second is a multi-chain launch. Now, cross-chain presales are selling the tokens to users on different blockchains before the token is fully live. The multi-chain launch is deploying the token natively across several chains at once. Initially, they might sound the same, but they solve different problems and give different results.
In this article, we will help you understand what the two approaches actually do and how they are different from each other. This will include the security and liquidity implications, the benefits of each of these methods and the potential results.
Before understanding the presale part, let’s first comprehend what cross-chain technology is. The cross-chain technology is the interconnection of two or more completely separate blockchains, which allows the exchange of information and data, such as cryptocurrencies, across blockchains that would otherwise be separated from one another.
The cross-chain technology completely removes any need for third-party intermediaries. It plays a very crucial role in blockchain interoperability, which is the ability to move assets and any kind of information across blockchains. This kind of technology ultimately leads to greater adoption. It is used in various cases, such as asset transfer via cross-chain bridges, cross-chain oracles, and cross-chain smart contracts.
Now, cross-chain presale focuses on allowing users to participate using assets from different blockchains, which triggers seamless asset movement via bridges for a unified sale.
Key points:
Let’s get acquainted with multi-chain technology first. Multi-chain is a basic term that promotes blockchain interoperability and decentralization, in the true meaning of its term. Multi-chain is the ability to use multiple blockchain networks and combine their unique capabilities and strengths of other chains. Instead of relying on a single blockchain for all needs, multi-chain technology leverages different blockchains for different purposes.
This means one blockchain could focus on security while another specializes in scalability. Not just this, but multi-chain solutions reduce risk and prevent systematic failures. Because if one chain faces any issues, that application will continue to function on the other chain.
Now, multi-chain token launches involve releasing a single digital asset across multiple blockchains simultaneously. This allows the project to tap a diverse user base, liquidity pools and DeFi platforms. This improves scalability, reach and user experience.
Key points:
Both of them might sound somewhat similar, but they are very different from one another. It depends on the project’s goals and aims, on which one to select for the best results. Cross-chain presales focus mainly on before the token is launched, and on the other hand, multi-chain launches focus on ecosystem expansion. Let’s understand this better.
In a cross-chain presale, the primary focus is on fundraising. This system allows users to buy new cryptocurrencies by using assets from different blockchains like Ethereum, BNB Chain or Solana. Here, even if the project is primarily built on one main chain, investors are allowed to participate from anywhere or from other chains as well.
The technology of cross-chain tools like bridges and protocols handles asset transfer and token delivery, helping the project to unite liquidity and reduce fragmentation during the early stage. This is very much ideal to attract a larger audience even before the token is officially launched.
The main focus of the multi-chain launch is on deployment and long-term growth. Here, the project launches its crypto natively on multiple blockchains. Now, each of these blockchains has its own set of smart contracts and liquidity. This allows users to interact directly without relying heavily on a single blockchain or bridge.
This process is known to improve and also lower fees for users, along with reducing dependency on a single network. At the same time, it also increases development and maintenance effort for the project.
| Factors | Cross-Chain Presale | Multi-Chain Launch |
| The goal | Fundraising before the actual launch | The deployment and ecosystem growth |
| Time | Happens before the token launch | Happens at the time or after launch |
| Chain dependency | Chains are depended on interoperability tools | Each chain operates independently |
| Bridge usage | Highly dependent on bridges/protocols | Little or optional bridge usage |
| Maintenance | Moderate technical complexity | High development and maintenance effort |
| Suitability | Early-stage projects seeking good participation | Projects aiming for scalability and resilience |
The multi-chain is a kind of blockchain technology that helps multiple blockchains to interact in a specific environment. The multichain environment can reduce congestion and transaction costs to a great extent.
It takes advantage of the diversity of different approaches across various blockchains that have different designs for scalability, execution and security. This kind of diversity favors innovation and rapid development. This is exactly what is needed to accelerate the growth of Web3 development and to give a powerful foundation to that.
Decentralised Finance (DeFi), along with supply chain management, and even NFTs (Non-Fungible Tokens), use multichain architectures. Multichain launches will expand over the period as new cryptocurrency projects come into the space. We can even expect new governance models and scalability solutions in the coming years.
The cross-chain technology is ideal for multiple chain connectivity in an interoperable ecosystem. It is useful in developing native applications that operate across various smart contracts easily. This kind of technology is perfect for developers to get the advantage of diverse blockchain networks.
Moreover, the future of cross-chain crypto presales looks very strong as Web3 moves towards a more connected and user-friendly ecosystem. As interoperability protocols and cross-chain liquidity networks mature overtime, participating in these presales across different blockchains will become more secure as well as faster.
And therefore, with better security standards, cross-chain presales will likely become a preferred kind of fundraising model for new cryptocurrencies. And this is why cross-chain presales will make early-stage investing more accessible, inclusive and efficient.
To put it in the simplest way possible, cross-chain presales are more about raising funds across chains, and multichain launches are more about operating across chains smoothly. The right choice will also depend on whether a project or a new token is preparing for early capital and reach or long-term usage and resilience.
Both cross-chain and multi-chain technologies are widely popular in the cryptocurrency industry. Recently, the crypto wallet MetaMask has added native support for Bitcoin. With this, the largest Ethereum wallet continues its multi-chain expansion in the industry.
Also, with the growing development of cross-chain technology and blockchain, the Ripple ecosystem recently went through a major upgrade. The native token XRP was successfully launched on the Solana and Ethereum networks. This development not only enhances XRP’s liquidity but also solidifies Ripple’s move in the competitive landscape.
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