As big as the DeFi market has become, there has always been one major hurdle - that of Bitcoin. Bitcoin has the biggest market cap by far in the cryptocurrency industry, leaving a lot of potential on the table. What if it were possible to bring the recognition and community of Bitcoin to the DeFi world?
This is one of the main goals ChainX has set out to do. By researching and developing new technologies, it is aiming to realize cross-chain asset exchange and achieve Bitcoin Cross-DeFi.
What Is ChainX?
ChainX network, built on Substrate, is a cross-level inter-chain interoperable asset gateway, consisting of PCX, DEX, inter-chain and relay modules, Bitcoin Layer 2 financial platform and Polkadot second-layer relay chain. ChainX has the distinction of being the earliest launched project in the Polkadot ecosystem, too.
It is an inter-chain platform that crosses mainstream cryptocurrencies onto chains with different structures. Being built on Substrate, a framework for building upgradable and efficient blockchains, the chain is easily integrated into the Polkadot network at genesis.
The project is committed to the research and application of Bitcoin layer 2 expansion, digital asset gateway and Polkadot second-layer relay chain. Each of these systems allow ChainX to achieve its overarching goal.
The Bitcoin layer-2 expansion will allow it to promote Bitcoin’s value flow, enrich financial derivative opportunities and improve hedging tools. It is worth noting here that ChainX’s primary mission is to bring BTC into the Polkadot ecosystem and be the largest BTC layer2 financial platform.
The digital asset gateway enables the project to act as a decentralized Bitcoin trusteeship and provide inter-chain asset mirroring, allowing a wide range of cryptocurrencies that can be exchanged and traded on the same chain.
In the future, ChainX may evolve into a second-layer relay chain to the Polkadot ecosystem.
What Is The PCX Token?
The PCX token is the native token of ChainX and so is used widely in most programs running on ChainX. The mining income of ChainX is split into four different parts: the founding team, the Treasury, PCX mining users and inter-chain asset mining users. This is the current distribution of income, though it can be readjusted with a referendum in future community governance:
PCX Mining: 57.6%
Inter-Chain Mining: 6.4%
What Is The PCX Token Used For?
The uses of the PCX token span from staking and paying fees to on-chain governance and distributing inter-chain mining rewards. Another major use of the token is backing Bitcoin financial derivatives.
It is used for paying miner fees, like with the Bitcoin network. In this role, all assets are converted into votes based on the PCX price, similar to ECR20 in Ethereum. Its role as the core collateral of Bitcoin derivatives and trusts make it the Risk Modeling standard of Bitcoin finance.
It plays the important role of exchange medium too, serving as the base currency In the system-integrated transaction Dapp. Otherwise, it is used as the measurement standard in POS consensus elections, where the higher the number of votes received, the greater the responsibility.
ChainX is a very forward-thinking project. It is looking to leverage the growing DeFi market by increasing interoperability between chains, researching Bitcoin layer-2 expansion and all the benefits that will provide, and running as a second-layer network to Polkadot. Its foresight will greatly benefit the project moving forward as new opportunities arrive.
All in all, ChainX appears to be a solid project with big ambitions that it seems set to realize. Therefore, PCX is well worth watching.