The crypto industry continues to grow at breakneck speed. Global user adoption is at an all-time high, while new blockchains, coins, and tokens are launching daily.
But at the same time, the overall ecosystem can be fragmented. Since there’s no single, perfect technology out there, each project tries to solve issues of speed, security, and scalability in a different way. As a result, many decentralized applications and exchanges can be challenging to use for the average user. In addition, it takes time to research all of the competing technologies.
To reduce this complexity, we need a way to connect all of the different blockchains so that the end-user doesn’t need to be an expert to buy, sell, and transfer their cryptocurrency.
That’s where multi-chain support comes in. It allows trading platforms like NDAX to connect to multiple blockchain networks and provide users with a seamless trading experience.
What is multi-chain support?
Multi-chain support is when coins and tokens are available on multiple networks simultaneously. Now that there are an increasing number of blockchain networks that support dapp development, there’s a greater need for interoperability.
For example, Polygon’s MATIC token is available on both Ethereum and Binance Smart Chain. This gives MATIC holders more options for moving around their tokens between various wallets, DeFi dapps, and exchanges.
NDAX users will now have greater access to different networks thanks to multi-chain support. In addition to previously-supported networks like Bitcoin, Cardano, Polkadot, and a broad range of Ethereum’s tokens, NDAX now supports Binance Smart Chain (BEP-20) tokens as well as other growing networks, including Polygon and Fantom.
How does multi-chain support work?
The world of DeFi features many different platforms that each operate a little bit differently. This can make it difficult to move different assets between networks and access DeFi platforms.
Multi-chain support is one way to address this issue. Since it’s blockchain agnostic, it reduces the number of transactions you need to make in order to purchase and transfer different tokens. It also gives you more options to avoid high transaction fees and reduce confirmation times.
For example, what if you wanted to withdraw a token in your NDAX wallet to an external wallet via Binance Smart Chain? What would the process look like with and without multi-chain support?
Without multi-chain support
1. First, you would need to create an account on another exchange, such as Binance, that supports Binance Smart Chain.
2. Then, you would transfer your tokens from NDAX to Binance. This step would take time and incur fees.
3. After the tokens were confirmed in your Binance wallet, you could withdraw your tokens via Binance Smart Chain to another wallet, such as TrustWallet. This step would also take time and incur fees.
With multi-chain support
1. NDAX users can simply buy tokens on NDAX and withdraw to an external wallet via Binance Smart Chain.
With multi-chain support, the entire process is much simpler. Not only does it save fees and cut down on transaction times, but it also reduces the chance for user error and external risks. Since going through another exchange requires additional steps, it increases the likelihood of lost funds due to inputting the incorrect wallet address or security breaches.
Furthermore, multi-chain support offers you the flexibility to choose different chains based on network conditions. If one chain is experiencing congestion issues, you can simply switch to another chain.
Benefits of multi-chain support
Multi-chain support enables the best user experience possible for the NDAX community. It minimizes the pain points that users go through when transferring tokens between various exchanges and wallets.
Here are some of the primary benefits of multi-chain support:
· Lower fees
Transaction fees (or gas fees) can be expensive, especially on networks like Etheruem. When the network is congested, gas fees can sometimes reach hundreds of dollars. We know this isn’t sustainable for most users, so multi-chain support gives you access to more affordable options.
Transaction fees on the Binance Smart Chain and other smart contract platforms, like Polygon or Avalanche, are often fractions of a dollar. As a result, you can choose your preferred platform and save money.
· Fewer steps
Multi-chain support dramatically reduces the time spent making trades and transferring coins between wallets. Previously, you would have had to move funds between centralized and decentralized exchanges to purchase certain coins and tokens.
Now, multi-chain support grants users access to many more options that were unavailable. Fewer transactions also mean fewer incurred fees and reduce the chance for user errors that can lead to lost funds.
· Seamless integration between multiple networks
The world of DeFi can be segregated into many different blockchains that each need their own wallet and compatible exchange. This acts as a barrier to usability and mass adoption.
Multi-chain support on exchanges like NDAX solves these issues by providing a seamless bridge between blockchains, dapps, wallets, and banks. This allows users greater flexibility, convenience, and affordability.
NDAX now supports the Binance Smart Chain and other growing networks like Polygon and Fantom.
· Higher transaction speeds
Ethereum’s blockchain still operates on a proof of work algorithm. While it is transitioning to a more scalable proof of stake blockchain, the network currently faces congestion issues and slow speeds due to high traffic levels.
Many tokens that could previously only be found on Ethereum are now supported by other, more nimble blockchains. This is a significant advantage to traders who need faster transaction speeds. Multi-chain support makes accessing these blockchains and tokens easier and quicker than ever.
· Added benefit for Canadian crypto investors on NDAX
For Canadian investors, it can be challenging to find an exchange that supports all the features needed to buy or sell cryptocurrency quickly, simply, and securely. Multi-chain support is just the latest feature to be added to our platform, a Canadian-based crypto platform that offers a world-class trading experience.
NDAX is one of Canada's most advanced crypto trading platforms and allows for quick and efficient fiat deposits and transfers in CDN dollars from all Canadian banks, credit unions, and financial institutions.
Aside from multi-chain support, NDAX offers:
· Instant ID verification
· Canadian banking for same-day deposit and withdrawals
· Advanced trading options with multiple order types
· Institutional-grade crypto security
· 24/7 live customer support
· Zero deposit fees and 0.2% trading fees
The bottom line
Multi-chain support is critical to the future of cryptocurrency. Without it, blockchains, dapps, and exchanges will be unable to continue experiencing the explosive growth rates seen by the crypto industry over the past couple of years.
Cryptocurrency exchanges must be at the forefront of innovation, as these platforms are often where people experience the world of crypto for the first time. By launching multi-chain support, NDAX is making it easier than ever for more people to access the broader world of cryptocurrency and DeFi.
Multi-chain support means that crypto traders can benefit from choosing the most efficient network when sending and receiving crypto from their NDAX wallets.
NOTE: Multi-chain support is currently active for all applicable networks when making deposits. Multi-chain withdrawals are currently supported for Ethereum, Fantom, Shiba, USDT, and Polygon networks, with Binance Smart Chain support for withdrawals coming soon to USDC, AAVE, Avalanche, Compound, Chainlink, and Uniswap.