Radix is a distributed ledger technology and the first layer-one protocol designed to serve DeFi. Using this protocol, developers can build decentralized finance applications or dApps without any risk. There is no room for the constant threat of exploits and hacks in this protocol. If you are interested in investing in this cryptocurrency, you should keep reading. We will talk about Radix, how it works, and where to buy it. Before visiting an exchange to buy this token right away, you should learn more about it.
What is Radix?
Following the financial crisis in 2008, Nakamoto created Bitcoin. It was a solution to cut the hand of third parties and create decentralized finance.
Later, DeFi was created on Ethereum to provide a secure, self-reliance space. It was a great and revolutionary innovation where developers could build a decentralized application quickly and easily. The only thing missing from the DeFi industry was permission less distributed ledger technology (DLT). This ledger provides an open-source infrastructure of programmable assets or dApps to replace the traditional banking infrastructure.
Radix tries to resolve technology issues that limit the development of DeFi by building a layer-one solution. The Radix is a full-stack approach that can be described as re-engineering consensus, distributed virtual machine that can build DeFi applications, incentives developers, and build DeFi components.
The critical features of Radix
We all know that DeFi is the future of finance. However, suppose you have been long enough in the DeFi industry. In that case, you know that blockchains cannot satisfy all the needs of DeFi yet. So Radix was introduced to solve this problem and prepare blockchains for future decentralized applications. To do so, Radix focused on three-point:
- Accessibility: The ability to quickly enter and exit DeFi protocols
- Liquidity: The ability to create pools of liquidity
- Freedom: Bigger player base and a more excellent choice for the users
These three factors uniquely complete each other. Accessibility encourages more users to use the platform. The more user there are, the greater the liquidity pools will be. And this virtuous circle continues to turn. Now it is time to understand how does this platform work.
How does Radix work?
The Radix provides cross-shard synchronicity to provide scalability with our jeopardizing security. The developers responsible for maintaining the platform are incentivized by rewards in the form of XRD, the native token of the platform.
The most important and unique feature of Radix is its consensus mechanism. The Cerberus is the heart of the protocol. What is the Cerberus mechanism, by the way?
The Cerberus is part of a consensus family that can simultaneously perform more than one task. That is precisely what makes Radix’s scalability infinite. Because as long as radix is successful, more users join the platform. There will be more decentralized applications on the platform. So as the number of nodes increases, the scalability of the network extends too. Now let’s talk more about the Cerberus consensus mechanism.
This mechanism uses byzantine fault tolerance (BFT) to provide scalability in the network. The name this consensus mechanism comes from a Greek mythology dog that had three heads. The consensus uses a parallelized BFT process. In this process, transactions are built across several shards. This is what makes mass adoption possible.
The Radixe provides composability for the users as well. The term composability in DeFi refers to providing resources for creating platforms. Developers can use these resources over and over again.
So by using the composability function, dApps can interact with each other. On the other hand, developers will create applications and distributed ledger technologies quickly.
Radix’s smart contract
Smart contracts are a unique part of the DeFi industry. Radix benefits from a special kind of smart contract known as Components. This type of contract is more intuitive than Ethereum’s smart contract. The outcome of the Component smart contract is consistent and more predictable. And it is possible to use this type of smart contract on various applications.
Developers created the Component smart contract with Scrypto Programming language. The Scrypto is a functional language used on many DLT projects.
The Radix first was released its Olympia Mainnet, which acts as the foundation of future development. The Olympia makes it possible to introduce the native token of the platform, XDR, and three software.
- The Radix Node
This software runs on the Radix platform and is available on Windows, Linux, and Mac. The software performs three functions: Validator node, Full node, and Archive node.
- Radix desktop wallet
A desktop wallet makes it possible to quickly stake and unstake XDR for the users.
- Radix Explorer
This software is designed for listing validator nodes who want to stake their holdings. The information of each validator is provided to make an informed decision about which validator to stake to.
The Radix token (XDR)
The XDR is the native token of this platform. The XDR is not issued by validating blocks but by each block’s price. So there is a specific role for the issuance of XDR.
- When the price is 0.05$, 5 percent of the supply is issued.
- When the price is 0.7$, 10 percent of the supply is issued.
- once the price heats 0.39$, 90 percent of the supply is issued.
- 100 percent of the supply is issued when the price rise to 0.43 $.
So do you see the goal? Yes, developers want to create tokens as long as they are used. So the supply always shows the Radix adoption. One of the most exciting practices is to deploy a project on Ethereum as an ERC-20; this way, the project will be launched on the most prominent smart contract enabled blockchain. So the project will be compatible with more crypto wallets, exchanges, and platforms in the DeFi industry. In the following, the token holders can convert their ERC-20 token t the native token of the platform. After the launch of the Olympia Mainnet, the XDR became live, and the ERC-20 token turned to wrapped XDR on the Ethereum blockchain, and they are called eXDR. It is possible to convert eXDR for XDR at a ratio of 1:1.
What issues does Radix address?
Radix solves four critical problems in the blockchain industry; developers face these problems while building decentralized applications’ distributed ledger technology. Here are four benefits of using this protocol:
- Reducing the risk of exploits and hacks
- Create interoperable applications in less time
- Incentivizing developers
- Provide scalability without risking security.
Radix use cases
To achieve mass adoption for decentralized applications, interoperability is necessary. When developers can communicate with each other, they can build decentralized applications easily and quickly without compromising security.
On the other hand, decentralized applications need to reduce the constant threat of exploits and hacks.