Approaching cryptocurrency with its web of multi-chains, blockchains, and cross-chains can tangle you up in a crypto-knot. What does it all really mean and which coins out there are helping their users navigate this confusion?
Calyx (CLX) is one coin whose ease of use stands out from the crowd. It pledges to support cross-chain trades and allow multi-chain crypto trading, but how does this actually help investors?
The blockchain, the cross-chain, and the multi-chain unpacked
The blockchain is the best place to start untangling the multi-chain web. To explain blockchain as simply as possible, data records are linked together through cryptography and compiled into blocks. Each block has the unique key of the block behind it, securely connecting them together. This removes the need for third-party involvement, middlemen, and centralised authorities. Cryptocurrency is a digital currency based on this cryptography, using the blockchain.
Cross-chain technology allows for interoperability between different blockchains. In simpler terms, it is the technology that connects different blockchains together. For cryptocurrency, this enables users to individually trade tokens or coins between different blockchains (also known as ledgers).
The multi-chain is a little more complicated. This technology needs a minimum of two projects to be activated, making the blockchains work simultaneously, allowing multiple chains to communicate at once. The advantage of this technology is that it decentralises the process because the blockchains work together, rather than being run by a central organisation.
The main aim of this technology is to create a rich ecosystem. The cryptocurrency ecosystem is designed to self-manage the creation, distribution, and transaction of coins. The better the interoperability of the ecosystem, thanks to cross-chain and multi-chain technologies, the richer the cryptocurrency ecosystem.
What does this all mean to the everyday world?
One of the main advantages of the technology behind cryptography is that you don’t need a bank account to trade. Therefore, for people unable to open bank accounts, cryptocurrency is a more accessible alternative to traditional banking.
The blockchain is also much more secure than traditional banking systems. Each block on the chain has the unique code of the one behind it, as well as a timestamp and date of its creation. This chain is spread over a web of thousands of computer systems. Any hackers attempting to access this blockchain would need to hack each individual computer in order to hide a disturbance in the unique chain. This is much more secure than the passcodes protecting online banking.
How does this apply to Calyx (CLX)?
On their website, Calyx (CLX) pledges to allow multi-chain crypto trading. Investing in this coin should guarantee its users easy and seamless interoperability through the blockchains, in order to swap their coins. They also promise ‘atomic token swaps in a single transaction at the best rates, proving a dedication to easing the navigation through the multi-chain web for crypto investors. Currently, Calyx supports Ethereum’s blockchain, however, they plan to broaden this to Polygon, Binance Smart Chain, Avalanche, and Fantom in the future.