Function X (FX) is a multi-layered DeFi ecosystem. The protocol combines a flexible inter-chain bridge with a programmable Internet service framework. According to Pundi X Labs, the development team behind the project, the goal of the platform is to function as a bridge between traditional financial services and next-generation DeFi functionality.
What problems does function X try to solve?
There are many issues that Function X (FX) was designed to eliminate or reduce. Primarily, the protocol was designed to help reduce investor confusion. New DeFi users may find the protocols confusing as they incorporate new terms and options. This led to slow adoption by mainstream users.
The X function helps alleviate these concerns in several ways. For one thing, the network was designed to mirror traditional financial services, making it more familiar to users. Features like High Yield Bank Accounts replicate your local banking, but with a much better return on investment.
Another major issue facing DeFi users is scalability issues. The world’s leading DeFi network, Ethereum, continues to experience transaction delays and other issues related to network congestion. Ethereum users face record fuel costs. These fees raise the bar for user onboarding, which hurts the entire crypto industry.
The X (FX) function incorporates a unique technical structure to avoid similar problems. The network offers high throughput and performance through its multi-chain framework. The protocol is less expensive to manage virtual machine instances compared to Ethereum. Plus, you can send FX worldwide for a fraction of the cost of sending ETH.
Inflation is a major concern for investors around the world today. Poor monetary policy coupled with the ongoing pandemic has left the world’s fiat currencies skyrocketing in value. Currencies like the USD are at their highest level of inflation since the early 1980s. Unfortunately, inflation robs savers of their assets.
Function X users avoid inflation issues due to the limited token supply of the protocol. Additionally, network staking features remove tokens from circulation during the staking period, increasing the demand for the asset. The network’s community governance mechanisms allow users to vote on token burns and other ways to reduce the circulating supply of currencies to ensure that inflationary risks are mitigated.
Lack of liquidity
Liquidity issues also continue to plague the DeFi sector. These problems are the result of a lack of interoperability in the market. Most DeFi ecosystems operate as digital islands with few ways to effectively exchange assets with other popular ecosystems. Functions X incorporates a cross-chain bridge that allows developers to easily integrate the best features of multiple blockchains into their creations.
Advantages of the X function
There are plenty of reasons why Function X continues to see a growing user base. On the one hand, it provides strong support for the further development of the entire DeFi sector. The protocol was designed from the ground up to simplify the onboarding of new traders. As such, it features an easy-to-navigate interface and low-risk passive income features like staking.
A critical part of the Function X approach was to ensure interoperability with existing Ethereum protocols and developer tools. The network enables asset aggregation contracts that can connect to Ethereum smart contracts without permission. Uniquely, these smart contracts are able to generate interest across multiple chains at the same time.
Function X offers interoperability that surpasses its predecessors. The system relies on a network of decentralized validators to provide f(x)Wallet cross-chain transfers. This feature allows you to trade digital assets directly from one chain to another. Its main purpose is to connect Function X to Ethereum, Binance Smart Chain, and other top-performing DeFi networks.
How the X function works
Function X uses a Scrypt algorithm and cross-chain communication architecture to give developers and users more flexibility without reducing security. It consists of f(x)Core which is the base layer of the protocol. Its main objective is to connect all assets and cross-chains within the ecosystem.
X function chains and synthetic assets
Developers can easily create their own Function X strings and synthetic resources. These subnets can have their own consensus, governance, tokens, etc. Additionally, they can offer various features while taking advantage of Function X’s scalability.
The CryptoBnk feature is a DeFi service that replicates your traditional savings account. The main difference is that since there are no centralized bankers to pay, you receive a much higher APY. You can also bet using this feature. Staking requires you to provide liquidity to a smart contract for a predefined period of time. In return, you receive rewards based on your stake.
Consensus Function X (FX)
Function X leverages both Proof of Work (PoW) and Proof of Stake (PoS) consensus mechanisms. The Practical Byzantine Fault Tolerance (pBFT) PoW mechanism provides top-notch security for the network. PoS systems offer scalability and high transaction throughput.
Users can store their FX in the Function X wallet. This network-built wallet provides access to wallet tracking information such as your past trades, current holdings, token values, and other statistics. The wallet is simple to use and requires no prior cryptocurrency experience to operate. Notably, the Function X wallet is PC-based.
FX is the primary utility and governance token for the Function X DeFi protocol. The token was launched as an ERC-20 asset on the Ethereum network in 2019 with a maximum supply of 1.9 billion tokens. In 2021, Function X launched a proprietary blockchain. At this time, the network started issuing tokens on this network.
FX plays a vital role in the Function network. This versatile digital asset can be used for creating smart contracts and storing data. It is necessary to participate in one of the governance protocols. You can also stake FX tokens to secure low-risk passive income. Notably, your rewards are paid out in FX tokens which can then be added to your initial stake to enhance future returns.
FX is necessary to guarantee the creation of synthetic products. Synthetics take advantage of the scalability of Function X protocols. They can function like stablecoins with their value pegged to another asset such as gold or USD. They can serve as collateral when launching new cryptocurrencies or utility tokens that support other subnets.
Function X (FX) – A flexible and scalable alternative for developers to consider
Function X has all the features that Ethereum developers love and more. The network’s unique dual-consensus design gives it scalability and security. Moreover, it is much cheaper to host Dapps and create new tokens. For these reasons, you can expect Function X’s network to grow over the coming months as new protocols take advantage of its unique features.