Today we will continue to talk in order of market value. Today we will talk about a public chain. From CMC, we can see that the increase or closing fluctuation in the past year is quite large. We can see that from January and February of 2023, it was only 0.04 The U.S. dollar then hit 0.14 in May, which almost tripled, and now it has fallen back to 0.05. It is Radix (XRD), with a current market value of only 570 million U.S. dollars and a market value ranking of 200+. Let’s take a look today. Get off it.
Introduction
Radix is the only decentralized network that allows developers to quickly build DAPPs without the threat of exploits and hackers. As a layer 1 protocol, Radix optimizes cross-shard synchronization, eliminating much of the friction that hinders seamless cross-chain interoperability between Dapps and different blockchain protocols, without compromising composability or security. Multi-chain scalability is achieved. It also creates a good environment for developers to build multi-functional cross-chain applications and tap the potential of DeFi. RADIX token is the native token of Radix Public Network. XRD is mainly used for staking and transaction fees in the Radix ecological environment.
Decentralized financial applications are currently built on protocols that are not designed to meet the needs and requirements of DeFi services. Radix leverages our significant technological innovation to become the first Layer 1 protocol dedicated to serving the rapidly growing DeFi industry.
Radix uses the consensus mechanism Cerberus, and the project says it is creating a decentralized financing protocol designed to provide "frictionless access, liquidity and programmability of any asset in the world."
Current problems: 1. Defi applications are all built on code, and no matter how skilled programmers are, errors and loopholes will inevitably occur, resulting in a large amount of funds being hacked every year and causing heavy losses.
2. The currently deployed contracts are very fixed and rigid, and it is also difficult to upgrade.
3. The current incentives for developers on the Defi platform are mainly provided by well-funded foundations, and a lot of money is wasted on some projects that have made no progress. And Radix is developing a decentralized self-motivation ecosystem.
4. The current scalability of Ethereum is poor, and the transaction volume is often congested.
Radix Protocol: The foundation of the future of DeFi
There is no doubt that DeFi will change the world, but all mainstream DeFi blockchains have major flaws. When you want to conduct billions of dollars worth of transactions, you need an infrastructure platform that can handle the potential challenges.
DeFi is a huge and rapidly growing field. In 2020, the total value of assets locked in DeFi dApps increased by a total of 2,000%, and as of now, approximately $20 billion is pledged in such protocols. Although most projects are underway on Ethereum, there are many challenges along the way.
None of these emerging platforms can provide the various functional combinations required by DeFi to promote DeFi into a truly successful phenomenon-level application, thereby supporting the transaction volume of the global financial system and supporting all users and stakeholders. Some of these platforms lack scalability, some cannot achieve finalization times quickly, and some cannot achieve cross-shard communication (i.e., "atomic composability").
Let’s take a look at what makes Radix different, and let’s be honest, it’s extra special.
1. Composability - DeFi Lego bricks
Generally speaking, in decentralized finance (DeFi), the term “composability” refers to the resources used to create a platform and its ability to be reused. A term synonymous with this is “DeFi Lego”. This means that resources in DeFi protocols are modular and can be combined with existing applications or used to create new protocols and applications. In addition, composability allows applications to interact with each other like DeFi Lego bricks, which is crucial for developers to quickly build applications.
Rather than writing every line of code from scratch, use various open source code elements as building blocks to create new DeFi applications. For example, many open source templates are available through OpenZeppelin. This includes ERC-20, ERC-721 and ERC-1155 token standards, as well as templates for decentralized exchanges, marketplaces and voting applications
Consensus algorithm Cerberus:
Radix’s consensus algorithm Cerberus is the first pillar. Through this method, the blockchain is divided into many shards, each operating as an independent sub-blockchain and not communicating with each other unless necessary. When communication is needed, the pieces are only temporarily "knitted" together before being separated to operate independently.
Cerberus supports a series of very fast transactions, with high throughput when necessary, and communication across the entire network (full composability) without sacrificing decentralization (which provides numerous benefits to all financial systems) . The result is a fully decentralized blockchain network that is infinitely scalable and has the potential to support millions of transactions per second.
2. Cardinality engine
This is a key element of scalability if DeFi is to achieve mass adoption and serve billions of users. Furthermore, as the number of nodes throughout the network increases, so does the network throughput. This is thanks to the Radix Engine (XRD Coin) application layer.
Radix Engine is a development environment that minimizes the risk of smart contract hacking and exploits. In addition, the Radix Engine serves as a decentralized "self-motivated developer ecosystem" to promote the development of communities based on Radix developer tools.
The Radix engine is designed for “creating logic that defines predictable, correct ledger outcomes in response to requests,” with its programmability derived from its use in finite state machines (FSM) in mission-critical systems that always require Predictable correctness. Smart contracts created by the Radix engine are aptly named "components".
Two of the most innovative features of the Radix (XRD Coin) engine are the component catalog and the developer royalty system.
3.Radix developer royalty system
The Radix developer royalty system incentivizes developers to deploy applications on Radix. The automated ledger system rewards developers who build smart contracts for decentralized finance (DeFi) on Radix DLT. In turn, this has the potential to create an automated decentralized autonomous marketplace for Radix Components.
This solves the “chicken and egg” problem when building network effects and momentum for DeFi platforms. In the past, if the market was immature or the remuneration was not enough, developers were often unwilling to spend time building useful applications. With Radix's royalty payments, successful developers will be able to get paid steadily and consistently, and the sooner they start, the better. This also avoids the common problem of establishing and maintaining sustainable development funding, which has bogged down many open source platforms.
4.Ingredients
Radix uses smart contracts called "components". Components behave more intuitively than Ethereum-based smart contracts, allowing for consistent, predictable and reliable results. Additionally, components act as DeFi building blocks and can be easily integrated into other applications.
The creation of components can be done through a programming language called Scrypto. Scrypto is a functional programming language that many DLT developers should be familiar with.
In Scrypto, tokens and nfts are not smart contracts (or components) at all. Instead, they are created as resources (platform-native FSM-based "physical" assets provided by Radix Engine v2).
Before a component is available on the network, it is automatically placed in the component catalog. The Component Catalog is a ledger registry of inactive templates or “DeFi building blocks” that can be used by anyone as a template or building block.
Components in the component catalog are activated for use when developers instantiate them from component templates. Once activated, these instantiated components can be applied to an unlimited number of applications and run the same way every time. This is particularly useful when creating multiple components with the same parameters. Additionally, instantiation is easy with no code required using the application programming interface (API). Therefore, any developer can quickly and securely execute smart contracts or issue assets without having to learn the Scrypto programming language.
The component catalog allows us to develop dApps quickly and securely, attracting developers from the traditional software field as well as existing DeFi and smart contract experts, and promotes the rapid development of the ecosystem.
Token economy
Radix Token (XRD Coin) is the native token of the Radix DLT network. XRD coins can be staked as part of the Radix Delegated Proof of Stake (DPoS) mechanism. Additionally, XRD tokens are burned to cover transaction fees across the network. XRD coins are the only valid unit of exchange for transaction fees within the network.
Radix DLT has a maximum supply of 24 billion XRD coins, holding 10% (2.4 billion) for future project development. Additionally, another 10% is allocated for future use of stablecoins on Radix. Just over 10% (2.79 billion) of tokens were donated to the Radix Foundation, the non-profit arm of the Radix DeFi ecosystem. This is to support the Radix ecosystem in the coming years. In addition, 50% of the XRD token hard cap is used for network emission rewards, and 300 million XRD coins are introduced into circulation every year. Additionally, just under 15% of XRD tokens (4.41 billion) were initially allocated as e-Radix tokens or eXRD tokens.
E-Radix Token (eXRD Token)
When Radix first launched the XRD token, it was deployed on Ethereum as an ERC-20 token. For emerging projects whose mainnets are still under development, deploying an initial ERC-20 version of the project’s token is becoming an increasingly common practice across the blockchain development landscape. This allows projects to introduce their tokens on the largest smart contract-enabled blockchains, working with most crypto wallets, exchanges, and platforms in the industry. Token holders can then convert their ERC-20 based assets to the project’s native token standard upon mainnet launch. However, Radix works slightly differently. The TVL on the chain is currently not very high, only more than 2 million US dollars.
Finally, to sum up, I have looked at a lot of public chains so far. The previous public chains all focused on performance, right? Now more and more public chains have begun to focus on niche areas, such as those focusing on chain games. Social, and this one that focuses on Defi. In fact, the most important thing about DeFi at present is not performance, but security, and then efficiency. Defi on Ethereum has already gone through a lot of funds, so it is a comparison. It’s stable. If you want to surpass him, just innovating from this point is not enough. After all, the funds stolen after being attacked on a defi application are higher than your current TVL. They are buying them with real money. costs and lessons learned.
Another thing is that the comparison between your current TVL and your market value is not enough. No matter you say you have a smart contract royalty system or consensus sharding, these innovations are not enough. If you want to become a defi hotbed public chain, you There must be huge innovation, at least it seems not enough at the moment, well, it is not recommended to buy.