Don't Cross The Chains: Multi-Chain vs. Cross-Chain, Zones of Sovereignty and the dWallet Breakthrough

In this post, we cover the risks and dangers of cross-chain solutions, and argue that - much like Vitalik's prediction - the future is multi-chain, not cross-chain. And with the introduction of dWallets, that future is finally here.

Don't Cross The Chains: Multi-Chain vs. Cross-Chain, Zones of Sovereignty and the dWallet Breakthrough

The blockchain world is evolving rapidly, marked by significant advancements from Bitcoin's initiation of decentralized financial transactions to Ethereum's smart contract capabilities. As we transitioned into this Web3 era of multiple networks, cross-chain solutions became popular, endangering the native security of sovereign blockchains. In this post we explore dWallets, the noncollusive and massively decentralized building block, where builders - for the first time - can access secure and universal multi-chain interoperability, instead of relying on cross-chain compromises.

The Multi-Chain vs. Cross-Chain Paradigm

Understanding the difference between multi-chain and cross-chain architectures is essential in grasping the current landscape of blockchain technology. Multi-chain ecosystems consist of various independent blockchains, each with its own governance and security protocols. This independence is vital for the stability and integrity of these blockchains, allowing them to operate and evolve autonomously.

In contrast, cross-chain technology seeks to connect these disparate networks, enabling asset and information transfer across them. While this interoperability holds great promise for a more connected blockchain universe, it introduces significant challenges, particularly in security and trust. Cross-chain interactions necessitate secure mechanisms for validating and recording transactions across diverse networks, often leading to complex and potentially vulnerable interconnections.

Vitalik Buterin has expressed skepticism about cross-chain applications, primarily due to the inherent security limitations of bridges between blockchains. He highlights the risks associated with these connections, especially in the face of 51% attacks on a chain with weaker security, which can compromise native assets on chains with stronger security.

Zones of Sovereignty and Blockchain Ecosystems

"Zones of Sovereignty" refer to the independent governance and security of each blockchain network. In a multi-chain environment, each blockchain maintains its unique features, such as consensus mechanisms and security measures, to ensure the security of its native assets. This sovereignty is essential for ensuring the safety and integrity of individual chains.

In a cross-chain setting, however, this sovereignty can be compromised as assets and data are mirrored and represented on networks with varying governance and security standards. This raises significant concerns about asset safety and the reliability of cross-chain transactions. Buterin's perspective underscores the importance of maintaining the native security of sovereign blockchains, especially in the context of cross-chain solutions.

Cross-chain solutions bypass the basic authentication mechanism of blockchains, a signature controlled by a user, in order to provide interoperability. By doing that, not only do they compromise the independent zones of sovereignty, they also expose the user to collusive behaviour and to the risk of lost and stolen assets. In order to create an interoperability solution that maintains each chain's zone of sovereignty - a noncollusive and massively decentralized solution must be adopted

dWallets: Noncollusive and Massively Decentralized Multi-Chain Interoperability

dWallets represent a groundbreaking solution in the blockchain space, addressing the challenges of interoperability while maintaining the integrity and sovereignty of individual chains. These building blocks enable asset management and logic execution across different blockchain networks, marking a significant advancement over cross-chain technologies.

dWallets are based on the basic authentication method of blockchain networks - the signature. That means that it does not represent assets from one chain on anoother chain, or infringe on any chain's zone of sovereignty. dWallets are the first building block for builders that can generate signatures in a noncollusive and massively decentralized way, due to the cryptography breakthrough behind it.

The technological prowess of dWallets lies in the unique 2PC-MPC protocol, ensuring both security and user autonomy in a multi-chain environment. Each dWallet operates based on a dual-share system, comprising a user share and a dWallet Network share. A signature cannot be generated without both shares.

The existence of a user share ensures the user's control over their assets and assets is always paramount, enhancing security and trust in the system. This makes dWallets noncollusive, since even if all validators in the dWallet Network collude to steal user's assets - the user share is always required to generate a signature.

As part of the 2PC-MPC protocol, the dWallet Network share is managed through a massively decentralized MPC process, executed by the validators of the dWallet Network. This process involves a large number of validators - potentially running into hundreds or thousands - collaboratively performing computations, with a 2/3 threshold in order to generate a signature. This makes dWallets massively decentralized, and it aligns the MPC process with a BFT-like consensus of a decentralized network, both in the large number of parties, and in the 2/3 threshold required.

Through the use of the innovative 2PC-MPC protocol, dWallets offer a secure, non-collusive, and decentralized solution for managing digital assets across multiple blockchain networks. This technology stands as a testament to the continuous evolution and sophistication in the blockchain space, paving the way for a more secure and efficient multi-chain world.

Composable Modularity - Strengthening the Multi-Chain Paradigm

One of the core strength of the dWallet Network lies in its composable modularity, which offers a foundational building block for developers across various blockchain networks. This unique feature enables builders to seamlessly integrate dWallets within their native platforms, facilitating operations across the entirety of Web3 in a manner that is both noncollusive and decentralized.

By leveraging this capability, developers overcome the Silo Problem, and can extend the functionality of their applications beyond the confines of their original network, maintaining the integrity and sovereignty of each blockchain while ensuring secure, user-centric interactions across different ecosystems. Composable modularity empowers the dWallet Network to act as much needed infrastructure for builders aiming to create interconnected applications without the security risks and complexities associated with cross-chain approaches.

This paradigm shift not only enhances the versatility and reach of blockchain applications but also aligns with the principles of decentralization and user sovereignty that are fundamental to the ethos of Web3. Through dWallets, developers gain the ability to manage assets and execute logic across multiple blockchains, paving the way for a new era of innovative, multi-chain functionalities that uphold the sovereignty of each network.


The future of blockchain technology, with the integration of noncollusive and massively decentralized dWallets, looks towards an ecosystem that is not only more interconnected but also retains the core principles of decentralization and sovereignty. As we continue to explore and develop these technologies, the possibilities for a more secure, efficient, and user-friendly blockchain experience become increasingly tangible.

Vitalik was right to predict that the future is multi-chain, not cross-chain, we were all just waiting for the breakthrough that could enable it. dWallets are not just a technological advancement; they are a pivotal step towards realizing the full potential of blockchain technology. They embody the principles of user ownership, decentralization, and security, paving the way for a more robust and interconnected Web3 ecosystem.