Sirwin
Sirwin

X1 - Ethereum killer or another dilution of the network?


Before we ask ourselves additional questions, let's focus on what we'll be discussing - what XEN and the X1 network are.

What is the XEN token?

XEN was created as a social experiment and is quite unique. We can mine it for free (covering only the transaction cost) on one of the 11 networks we choose to use for this purpose. For now, I won't delve into the details of how to mine it or the fact that the token can also be staked.

Who is behind it?

The founder is Jack Levin, who was one of the early employees at Google and is the founder of the Fair Crypto Foundation, which introduced XEN to the market. Jack is also a business angel and invests in various startups.

X1 Network.

The Layer 1 network, which is currently functioning as a testnet, has its tokens used for transaction fees called XN. These tokens can be obtained by burning XEN tokens on the Layer 2 network, i.e., the network used for minting or purchasing XEN tokens. Ultimately, the X1 network aims to connect liquidity across different network chains by burning those tokens to receive Layer 1 XN tokens. It is worth noting that the final mainnet will be built upon the existing testnet. The X1 network itself aims to become a competitor to networks like Ethereum, offering greater scalability, cheaper transactions, and other benefits.

But (Threats)...

1. It has already been done before.

Based on my observation, almost every blockchain project advertises itself in this way, yet Ethereum remains at the top. To simplify things greatly, networks like Binance Smart Chain (BSC), which I personally use as an example (let's leave the discussion of who can have their own node and other matters for another time), also offer significantly cheaper transactions that appear to work very quickly. And if not BSC, there are other inexpensive networks available. However, despite all this, Ethereum continues to dominate. So, if we set aside the main and only assumptions, we can conclude that X1 may likely become another network where liquidity in the crypto market is spread, but Ethereum will still prevail.

2. Who is Jack really?

If we look at Jack's LinkedIn profile and exclude his work at Google (18 years ago), and if we disregard the angel investor roles that cannot be linked or verified, we are left with essentially an image of a guy from the IT field with fancy gadgets in his header, who founded the Fair Crypto Foundation, which is also difficult to verify at first glance, including its legal status (at least I couldn't find any information at this stage, but it's possible that it's a detail that can be explained).

It's also possible that I'm searching for something that isn't there, as a good research approach assumes that everyone wants to deceive us. Jack could be a real person, but at the same time, a character created for the purpose of this project, based on his previous position at Google 18 years ago.

For example, some time ago, I had the opportunity to collaborate with PayPal on a certain project. If I were to add to that the involvement in other successful projects, the fact that Elon Musk co-founded PayPal, and highlight working individually on entire platforms, it could create an impressive persona that would inspire trust and admiration, even though none of these facts can be questioned. Ultimately, I'm just a programmer/investor who openly speaks about what I observe as a programmer, thinking in a certain schematic way.

3. Implementation of Assumptions

Here, the standard issue may be ensuring the successful execution of everything at the desired level. We have the transition from Testnet to Mainnet, and we also need to bridge 11 networks into one. The entire operation involves numerous checkpoints where the creators may face challenges.

But (Opportunities)...

If everything goes as planned and the network launches successfully, which seems to be partially happening already, we may witness the blossoming of another Layer 1 network. Whether it surpasses Ethereum or coexists with it, it has the potential to bring significant profits, just like Ethereum did.

The profit prospects include the potential increase in the price of the native XN token. Additionally, when tokens are burned to obtain XN, the price of XEN itself may skyrocket on individual networks. Only time will tell how much demand for the XN token can drive up the value.

Personally, I am still considering strategies to capitalize on this opportunity.

Technically speaking

I have looked into the contract, specifically on the network where I personally invested in this project.

xencontract

I haven't noticed any anomalies in the contract source code at the moment. Why am I checking the verified contract? Blockchain is a technological world, a world of programmers, and yet most people who push you into various projects have no idea about programming, they have no idea what a contract does, how specific methods work, how the code itself functions. Everyone thinks that if the code is open and can be checked, someone has already done it. And indeed, people usually do, but the next day we hear about hacks on a particular network.

So, I trust, but I verify!

5. Summary

I believe the project is worth observing, and if possible, considering allocating some capital or simply minting free tokens here. As you may have read above, I not only minted them but also bought them. XEN and XN tokens are part of my long-term portfolio. I'm rooting for the X1 network and I also recommend keeping an eye on it.

Blog w języku polskim / Blog in polish language
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Chainable.it
Chainable.it

I am an experienced programmer who has recently started creating tutorials on various topics within the IT world. In my tutorials, I cover topics such as PHP, JavaScript, Python, HTML, CSS, PowerShell, Windows, Linux, and AI.


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chainable. enter the blockchain

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