Chromia’s architecture isn’t like most blockchains. It’s built to scale by separating system-level functions from application-level activity, using a modular, multi-chain design. This design brings powerful advantages, but also creates challenges related to the management of tokens across the network. In this article, we’ll explain what the Token Chain is and how it will help streamline asset management in a multi-chain environment.
A Quick Overview of Chromia’s Network Structure
The system cluster handles core network functions and currently contains 10 chains. These include the Economy Chain, which acts as the ‘home chain’ for native CHR while managing network economics; several anchor chains that provide data finality; chains used as infrastructure for EVM bridging; an oracle chain; and now, the recently added ‘Token Chain’.
Currently, there is one active dapp cluster, named “pink”. As the ecosystem grows, additional clusters can be introduced to scale the network horizontally. At present, the “pink” cluster hosts 32 individual dapp chains. Each dapp operates on its own dedicated chain, or a group of chains working in tandem.
Why Use a Multi-Chain, Multi-Cluster Design?
There are several benefits:
- Customization and Flexibility: Each dapp gets its own chain, which means developers can configure their environment, fee structures, and data models without affecting others.
- Fault Isolation: If something goes wrong on one chain, it doesn’t affect the rest of the network. This isolation makes troubleshooting and maintenance easier.
- Less Congestion: With dapps spread out over multiple chains, traffic is naturally distributed. This helps maintain fast performance across the network.
However, this structure also creates some complexity, especially when it comes to token management.
The Challenge of Tokens on Multiple Chains
On a traditional monolithic blockchain like Ethereum, every token exists on the same chain. While this model has its limitations, it also provides the benefit of simplicity. When you use something like Uniswap, it only needs to look in one place to find tokens. The user doesn’t need to move their tokens from one chain on the network to a separate ‘Uniswap Chain,’ for example.
On Chromia, where each dapp runs on its own dedicated chain, tokens are not automatically available wherever you need them. If you want to use a token in a specific dapp, you typically need to send it to that dapp’s chain.
For this to work, the receiving dapp chain must define which other chains it will accept transfers from, and which tokens are allowed. Without a central asset hub, every dapp would need to set up a channel with every other dapp to accept incoming tokens, which can quickly become impractical.
So, what’s the solution?
Token Chain
The Token Chain’s purpose is to simplify how assets are stored, created, utilized, and transported within Chromia. Let’s take a look at the various functions it can fulfill:
- Act as a hub for FT4 tokens
Think of Token Chain sort of like a train station with lots of comfy lounges. Tokens can hang out there, but they can also quickly hop on a train and travel to the dapp where they’re needed. The Token Chain acts as a hub, allowing different dapps to connect to a common point for asset transfers.
- Act as a transaction location for other dapps
In many cases, assets will be sent directly to the dapp where they are used. However, it’s also possible for a dapp to initiate a payment on the Token Chain and then confirm the transaction was completed using ICCF. This is useful if a dapp doesn’t want to host tokens on their chain, but still wants a way to integrate token transactions.
- Act as the originating chain for new FT4 tokens
We’ve added a token generation function to the Chromia CLI that allows users to create tokens that originate on Token Chain.
The utility, which costs 100 CHR, allows the user to specify various parameters and streamlines the process of creating new tokens in the Chromia ecosystem.
- Act as a destination chain for assets being bridged from other blockchain networks
When bridging assets from other blockchains, the Token Chain can serve as the main landing point, making it easier to bring external assets into the Chromia ecosystem.
To set up a bridge connection, developers can use a separate CLI utility, also priced at 100 CHR, to register an EVM contract with the Chromia Bridge. However, they must manually deploy the matching contracts on the EVM side.
A dapp (i.e. “Dapp X” in the graphic) can still choose to originate a token on its own chain and establish connections with other dapps (and Token Chain itself) on a case-by-case basis. However, for most projects, deploying tokens directly to the Token Chain will be the most convenient and effective approach.
Overall, the Token Chain acts as an intermediary that simplifies asset transfers. Instead of each dapp setting up connections with every other dapp, they can route through the Token Chain. This reduces complexity and helps tokens move more freely.
Additional Benefits
- Fewer accounts and registration fees
Users typically need to register separate accounts on each chain, especially when different dapps have their own account requirements. A single account on the Token Chain can hold many different assets, potentially reducing the number of accounts users need to manage.
- Security benefits
All tokens deployed via the CLI on the Token Chain use a standardized FT4 configuration. This means a single audit of the deployment tool can cover all tokens created with it, increasing security and reducing overhead.
While key parameters like name, symbol, decimals, and minting policies remain fully customizable, developers no longer need to launch or manage their own chain just to issue a token.
Additionally, updates to the Token Chain are managed by system providers rather than individual dapp developers. This governance model adds an extra layer of assurance that core chain and token parameters cannot be arbitrarily modified.
What’s the Status of Token Chain?
Keen observers may notice that the Token Chain is already live on mainnet. For now, the only asset present on it is native CHR transferred by users who registered accounts via the Economy Chain.
The CLI functions for token generation and bridge registration are already available, and we’re actively collaborating with select ecosystem projects to deploy tokens using these tools.
In Summary
Token Chain will play a key role in making Chromia easier to use. It streamlines the process of creating, sharing, and transferring tokens, making things more convenient for both users and developers.
To learn more about Token Chain, we encourage you to check out this dedicated section in our Official Documentation.
About Chromia
Chromia is a Layer-1 relational blockchain platform that uses a modular framework to empower users and developers with dedicated dapp chains, customizable fee structures, and enhanced digital assets. By fundamentally changing how information is structured on the blockchain, Chromia provides natively queryable data indexed in real-time, challenging the status quo to deliver innovations that will streamline the end-user experience and facilitate new Web3 business models.
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