Introduction to Multichain:
Multichain serves the purpose of being a private blockchain implementation platform which can be used over a wide variety of operating systems such as Mac, Windows and Linux. Multichain is an off the shelf software that is based-off on the Bitcoin core, and is mainly aimed towards the private financial institutions. It works by a simple API and a CLI in all cases. Multichain distinguishes itself from its counterparts by allowing limited access to certain users thus promoting more confidentiality and reservedness. More in more, it also ensures that the mining process takes place with security precautions to the maximum. As the private and limited users can only allow access to new miners, this sufficiently makes the whole computation and scalability a lot easier to maintain.
Architecture of Multichain
The two main subsystems of MultiChain are the node (which tracks the chain’s global state) and the wallet (which tracks transactions of specific interest to the node and holds private keys). Each of these has separate mechanisms for storing and retrieving information.
There is little to distinction between Bitcoin Core and MultiChain since MultiChain is an derived version from the Bitcoin Core.
You can have multiple instances of MultiChain connected to the same chain. In other words, a single server can host multiple blocks of multichain provided that they are configured with different IP’s
The chain contains information permissions, assets and streams, although nodes also read and write these.
Each node has its own API which can be connected to from an application.
Communication between Node and Client in Multichain
As all the blockchains work by the public-private key usage. Beyond controlling access to funds, this type of cryptography enables any message to be signed by a user to prove that they own the private key corresponding to a particular address. MultiChain uses this property to restrict blockchain access to a list of permitted users, by expanding the “handshaking” process that occurs when two blockchain nodes connect:
1. Each node presents its identity as a public address on the permitted list.
2. Each node verifies that the other’s address is on its own version of the permitted list.
3. Each node sends a challenge message to the other party.
4. Each node sends back a signature of the challenge message, proving their ownership of the private key corresponding to the public address they presented.
If either node is not satisfied with the results, it aborts the peer-to-peer connection. In Multichain the creator of the Genesis block has all the administrator rights to grant access to other users wishing to be a part of the network. When the mining and the administrative changes are needed, all the participants must vote accordingly by a minimum preset. The change is then applied to the network. The change in the network is then advertised to the whole network where the metadata of the current network state reaches each node at different timings. If the validity of a payment transaction depends on a privilege change that was broadcast shortly before, the difference could be critical, with some nodes accepting the payment and others rejecting it. Blocks are rendered valid if and only if the block history is traceable to the state of user permissions immediately preceding it and if the miner of that block exists on the permissible list.
Mining in Multichain
As opposed to granting domination to only one node, Multichain resolves this issue by allowing predefined nodes to mine in the network. The solution lies in a constraint on the number of blocks which may be created by the same miner within a given window. MultiChain implements this scheme using a parameter called mining diversity, which is constrained by 0 ? mining diversity ? 1. The validity of a block is verified as follows:
1. Apply all the permissions changes defined by transactions in the block in order.
2. Count the number of permitted miners who are defined after applying those changes.
3. Multiply miners by mining diversity, rounding up to get spacing.
4. If the miner of this block mined one of the previous spacing blocks, the block is invalid.
Configuration Parameters in Multichain
Multichain is very much supportive of other blockchain platforms ad can be easily integrated with them. Multichain supports a chain reaction of fund transfer in which if an organization receives funds on one node, that node is capable of distributing it to other nodes without unnecessarily flooding it to the network
The parameters that must be included in a configuration file are
? The chain’s protocol.
? Target time for blocks
? Active permission types
? Mining diversity
? Level of consensus
? Mining rewards
? IP ports for peer to peer connections
? Permitted transaction types
? Maximum block size
? Maximum metadata per transaction
Advantages and disadvantages of multichain
The advantages of multichain include
Easily purchasable as opposed to other blockchain currencies
Non-volatile in terms of legislative reforms
Multichain offers lower transaction costs due to limited network exposure
Support in mainstream financial sector
More prone and suitable for private organizations
Multichain has an effective control mechanism that stops the “bloating of blockchain”
Disadvantages include the following
Does not implement smart contract
Does not work for public type of blockchains