What Is Radix?
What is Radix? Radix is the first layer-one protocol specifically built to serve DeFi. Radix is “layer-1 DeFi done right” because it is the only decentralized network where developers will be able to build without the constant threat of exploits and hacks.
Covered:
- What Is Radix
- How Is Radix A Solution?
- Greatest Strength and Biggest Weakness
- Tokenomics
- Democratized Incentives & Staking
- Closing Thoughts & Recent Price Action
What Is Radix?
Bitcoin was built to revolutionize and democratize the financial system in response to “The Great Financial Crisis” in 2008. But it has yet to officially tap into one of the most potentially revolutionary aspects of crypto: Decentralized Finance
Decentralized Finance, (Defi), aims to create security, balance, and self-reliance — aspects often missing in a centralized society.
After poring through the layer-1 protocol’s whitepaper, it appears Radix has a remedy for just that.
“The concept of Decentralized Finance (DeFi) offers an alternative, where innovative new financial applications can be quickly developed and easily accessed by all. The right permissionless DLT (distributed ledger technology) network can enable this new era of financial innovation and democratization, providing an open infrastructure of programmable assets/applications (dApps) that can substantially replace the closed, walled gardens of traditional banking infrastructure today. Delivering on the promise of DeFi requires a platform that is equal to the task of becoming the new financial layer for the connected world.”
Source: Radix Whitepaper
And, they have a vision for how to do that, too.
“Radix intends to remove the technology barriers limiting the expansion of DeFi by building a layer-1 protocol that directly addresses the technology means, both for today’s applications and for the future of general financial services for the world. This is a full stack approach, re-engineering consensus, distributed virtual machines, executable on-ledger code, DeFi component building, DeFi application building and developer incentives.”
Source: Radix Whitepaper
Why This Matters
Friction in today’s financial system costs the world 0.05% of global GDP (approximately $71Bn per annum). Not to mention, it delivers financial products and services that are often inflexible and benefit primarily those at the top of the industry. Radix believes this is the most critical problem that the right permissionless DLT (Distributed Ledger Technology) network can solve.
Recommended: The Amazon Crypto Fiasco, Explained
How is Radix A Solution?
Radix is not a blockchain. It is an open, interconnected platform where the full range of powerful DeFi applications will be built securely and safely. The growth of DeFi rests on the shoulders of developers who are building the new decentralized applications that will replace traditional closed systems.
The barriers holding back DeFi are precisely those that hold back developers. Specifically, there are four problems that DeFi developers face today that a DLT platform must solve before DeFi can truly go mainstream.
Source: Radix Whitepaper
Tackling these issues are Radix’s Cerberus Consensus. “Scalability”, is solved with Cerberus’s “pre-sharding”, which means it won’t split dApps or assets between a static set of shards (determined by code). It breaks it into a practically infinite set of shards.
The entire ledger or chain is then mobilized (scalable) by this process, allowing it to process transactions infinitely through this “shard space.”
Source: Radix Whitepaper
The mainnet wallet is Olympia Radix Wallet, equipped with a working DEX to work across multiple chains, especially Ethereum. It has a wrapped Radix token, ticket – e-Radix. This specific build environment was made to make it easy to build and launch scalable DeFi within its ecosystem.
Greatest Strengths & Biggest Weaknesses
Right as you go forward to look on the Radix website, you are smacked with quality. The user interface is incredibly smooth. We have seen many, many different websites and the organization and information is presented professionally and is very digestible.
Source: Radix Whitepaper
Radix network is very confident with its “Layer-1 DeFi Done Right” and is already disrupting the other protocols. On its front page you will see “1000x More Scalable Than: Solana, Polkadot, Avalache, Cardano, Ethereum etc..”. Not only an “eth killer” but this is aiming to re-revolutionize Defi. Already making ripples, it is catching eyes of notable media outlets such as: Yahoo, Coindesk, Forbes, and, of course, CryptosRus. Radix network also received accolades from Willy Woo from Woonomics.
Biggest Weakness
Like most layer-1 protocols, the competition is very stiff. Solana, and Avalanche have made leaps and bounds over this last year and are continuing to thrive. They command a great portion of market share and reduce Ethereum’s dominance over the market. While we can see and understand the merit of this project, there is still competition delivering a solution to Ethereum.
Recommended: ConstitutionDAO Loses Bid For Constitution To Anonymous Collector
Additionally, there is still many great projects that have yet to reach critical mass. Crypto is still VERY new, and many people understand that Ethereum is the #2 crypto behind Bitcoin (#1 layer-1 protocol), and trust is still being built around the entire crypto ecosystem. Much of what is seen and “known” is what is trustworthy.
Tokenomics
Source: Radixdlt.com
e-XRD is fundamental to the Radix ecosystem. It was launched to ensure the mainnet is sufficiently decentralized, to build effective bridges between Ethereum and Radix, and to integrate key pieces of its infrastructure. The 2 tokens are nearly identical, and exchangeable, arbitrageurs may naturally tend to keep the two tokens at parity.
Recommended: How To Use Polygon Bridge To Save On Gas Fees
eXRD tokens can be swapped with the native XRD tokens at a 1:1 ratio and vice versa. This can be done through Instabridge or exchanges offering the ability to convert between eXRD and XRD.
Radix is also managing several partnerships in the crypto ecosystem that can bridge and create opportunity as well. As its DEX expands it will integrate with many difference projects to facilitate their partnership.
The Team
A remarkable team of tech enthusiasts and experts in their field. Extremely well connected with their social media as well. They are effectively building and staying consistent with not just developers and colleagues, but their consumers and token holders. An extremely robust community with a with networks focused in Telegram (16k+ members), Discord (10k+ members), and Twitter (100k+ members).
Democratized Incentives & Staking
Staking is one of the most critical things that our community can do to support the decentralization, security, and performance of the Radix Public Network. It’s what decides which validator nodes verify transactions, participate in consensus, and ultimately operate the Radix Public Network.
A key element of the decentralization, security, and performance of the Radix Public Network is the use of a Delegated Proof of Stake (DPoS) system where users stake (delegate) their XRD tokens to validator nodes. The staked tokens are not sent to the validator node – they are merely locked in place until the user unstakes them. It’s a form of voting.
As of the time of this writing, Radix Network pays out a respectable 12% per year APY.
Closing Thoughts & Recent Price Action
From the period of November 1st, through now, Radix has seen a 6x appreciation from 11 cents to north of 60 cents. Something to note is they have not seen any price action from the entire year of 2021. Yet, something has happened for significant price action.
According to Coinmarketcap, “They see 10x DeFi developer productivity – right now, DeFi developers spend up to 90% of their time securing their code rather than building functionality”. Despite that, there have still been over $285m of DeFi hacks, bugs, and exploits to date on Ethereum”. And, Ethereum is “Leading The Way!”.
Recommended: What Is Kadena
There are definite problems in the layer 1 protocols. Developers are spending more time building their code than developing a working product for consumers. This is how and why projects are coming to remove Ethereum’s dominance over the market. The more demand for scalability and security, the more competitive innovators like Radix becomes.
Source: Coinmarketcap.com
They have been building and are finally beginning to see price action. This could give credit to their marketing and close relationship with developers and future consumers. They stay up-to-date with the DeFi sector and the layer 1 protocols. They aim to re-develop the way people approach decentralized finance. Apparently, it is working. They have created a robust network and they are picking up significant traction with consumers.
The post What Is Radix? appeared first on CryptosRus.
Read more: https://cryptosrus.com/what-is-radix/?utm_source=rss&utm_medium=rss&utm_campaign=what-is-radix
Text source: CryptosRus
