With the Polkadot ecosystem becoming one of the biggest pieces of technology seen in the blockchain space this year. It’s no wonder we continue to set our sights on some of it’s rising projects. This week is no different as we take a look into ChainX, a new para chain that will bridge the Polkadot platform into the next level of crypto asset management.
Introduction
ChainX (PCX) is building the first layer-2 solution integrated into the Polkadot network using a PoS (Proof of Stake) consensus algorithm to establish the largest PoS node network in history. With the capability of supporting up to 1000 consensus nodes, at 2s block generation time, with less than 10s latency. This would allow any chain to have asset interoperability with any other chain as long as it’s established a connection with ChainX. Partnered with the Web3 Foundation, ChainX will use Polkadot’s PoS consensus and contracting technology to build the upper-tier facilities for inter-chain assets. Built on Substrate, ChainX has the ability to integrate with Polkadot for frictionless development and continued integration with other platforms. ChainX’s decentralized exchange system matches users’ orders and does not charge any trading fee to save users the high transaction costs currently associated with DEX’s. With a phasing out process ChainX will create a completely self-governed community platform, operating as the second-layer relay network of Polkadot.
ChainX was launched before Polkadot to integrate existing digital assets into the chain and warm up the Polkadot ecosystem. ChainX transfers existing assets to the Polkadot network while providing various services to new assets. While Substrate provides the basic framework, a great number of improvements need to be made to achieve features like multi-chain light node bridges, witness bridges, special incentive models, multi-chain asset trust tools, multi-platform wallets, and blockchain browsers. At present, ChainX has developed the BTC light client bridge, which can completely map BTC onto ChainX in a decentralized way. But, ETH’s light client bridge is still under development with light client bridges of other chains being studied. The connection to the Polkadot chain itself will use a two-way light client protocol, which is more efficient and does not need any trustee nodes. The ChainX system itself is broken up into validator nodes that are responsible for processing all user transactions, trust nodes that are made up of the top 15 validators, and sync nodes for broadcasting chain data. ChainX’s inter-chain relayers will allow anyone to submit block header and related inter-chain transactions from each blockchain into ChainX’s light client.
ChainX’s PoS algorithm measures users’ mining power based on the market value of BTC, DOT, ETH, and other assets that are deposited into an inter-chain bridge. Users can then transfer assets into the system through depositing, mapping, or locking up. These assets are converted into virtual PCX mining power according to the price of the asset and the discount given to each asset. Every inter-chain asset has a different discount rate which can be adjusted through community voting. The reason why assets besides PCX are discounted entering the chain is that as the system’s internal currency these users should enjoy greater mining power than other…
Hi! My name is Lark Davis!
I’m a cryptocurrency investor with years of experience and I’ve been making consistent profits in the crypto space.
I’m passionate about helping others do the same, so I run multiple educational channels on crypto investing.
