# Multi-Chain Architecture

Circular's infrastructure is designed to handle multiple blockchains simultaneously _(Figure 2)_, allowing the network to scale linearly with the number of nodes. The throughput scales with the number of nodes on the network, enabling it to handle any potential throughput, as long as there are enough nodes.

Circular's innovative architecture empowers nodes to manage multiple blockchains simultaneously, enabling them to mine blocks on different chains concurrently. This paradigm creates strong incentives for processing more transactions, ultimately generating revenues for node owners.&#x20;

### Environmentally Friendly Architecture

Notably, Circular's architecture is environmentally friendly, as it operates without an excessive energy footprint. **Every action performed by the network serves a purpose, ensuring that no energy or time is wasted.**&#x20;

In contrast to most single-chain networks where nodes often wait for the next block to be mined or validated before progressing, Circular's approach eliminates such inefficiencies. This unique feature allows for the seamless coordination of multiple blockchains, making the most efficient use of resources.&#x20;

These multiple blockchains can be configured as either public or private, each with distinct settings. Moreover, different chains can operate on specific portions of the network, catering to compliance requirements or other specific needs in different countries for example.&#x20;

### True Decentralization on Private Chains

The concept of multiple blockchains running on either the entire network or a subset of nodes gives rise to the notion of a multi-network, where each blockchain operates within its virtual network comprising selected nodes.&#x20;

This flexibility opens up a world of possibilities for Circular, enabling it to accomplish tasks that other Layer 1 networks cannot achieve. This, in turn, provides powerful enterprise tools across various industries.&#x20;

<figure><img src="https://2716601349-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FavExRFeHixS7RXntQE2M%2Fuploads%2FrIuQ4gzyin2Kond6NSRL%2FDecentralised.png?alt=media&#x26;token=428e9629-9d6c-4948-9cef-cca3cef54808" alt=""><figcaption></figcaption></figure>

From a scalability perspective, Circular's approach of running multiple chains on the same network allows for the provision of private blockchains at a significantly lower cost, all while preserving true decentralization.&#x20;

This stands in contrast to many Layer 1 networks that often require the creation of physically separate networks for their side chains or co-chains, which may not always maintain decentralization.&#x20;

**Circular's architecture empowers businesses and industries with cost-effective, decentralized solutions that can adapt to diverse requirements.**

In a Multi-Chain paradigm transactions from one chain to the other are absolutely allowed when there is the need. The only limitation is that only subnets that manage both chains can process those transactions.&#x20;

The "Mining" of a block is executed only by a single node and it requires the process of calculating hashes with specific characteristics. The mining difficulty is fine tuned in order to maintain a desired block rate (typically 3 sec).

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