Thread by @2xnmore

Radix resolves the demands of a globalised mainstream financial system, without compromising on safety and security.

Radix is creating a platform where the full range of powerful DeFi apps will be built securely and safely.

Here is why XRD thrives 🧵

$XRD #XRD #radix @radixdlt

The thread will cover the following scope:

1️⃣ Introduction ( What is Radix? )
2️⃣ The Problem with DeFi and the radix solution.
3️⃣ Token and utility ($XRD)
4️⃣ Conclusion and final thoughts

Let's get started 👇

In this thread, we will look at Radix DeFi Protocol, a layer-1 network that seeks to solve challenges within the DeFi ecosystem.

In particular, this review, delves into the key features and components that make up the Radix protocol and its native token (#XRD).

We will also establish why decentralized app developers use the platform.

#Radix is a layer-1 decentralized protocol focusing on DeFi applications.

DeFi, which stands for ‘decentralized finance,’ is an emerging blockchain application in which access to financial instruments is democratized, effectively getting rid of intermediaries such as banks.

Products such as cryptocurrency loans, savings, and early-stage investments are done in a peer-to-peer (P2P) manner allowing DeFi users to access them without prequalifications, restrictions, and other conventional means.

2️⃣ The Problem with DeFi and the #radix solution.

To better understand Radix Protocol, it is important to understand the challenges it was designed to solve within the DeFi space, which is currently dominated by Ethereum.

The Radix team has split its approach into four main categories:

1. Security

Hacks, exploits, and dApp failures are a common scene within the DeFi space, and $Radix attributes this challenge to the complexity of Ethereum’s Solidity development language and its vulnerability.

According to #Radix, Solidity is too specialized and complex, increasing the chances of deploying vulnerable code.

As a solution, Radix proposes its alternative Scrypto dApp development language, which is based on Rust, one of the most popular general-purpose languages.

Scrypto is both simple to use and familiar to a majority of developers with a Rust background.

Adopting a common language means that there are more developers to tap into to join the Radix community, and these devs bring along years of experience and tried and tested tools.

The most significant benefit of this scenario is that the developers are less prone to releasing vulnerable code.

Even newcomers to programming in Scrypto can benefit from resources within the community and leverage experience from their more experienced counterparts.

2. Redundant code

With the current implementation on Ethereum, most dApps are created on standalone smart contracts meaning that the underlying code is not reusable even though it performs similarly to other pieces of code.

Essentially, even though, two dApps perform the same function, their code will be unique.

This phenomenon increases code development resources making it more expensive and slow to create dApps.

On the contrary, #Radix has designed a dApp deployment environment that encourages code sharing through modular development and code standardization.

This means that a developer working on a new application can take advantage of freely and easily available code modules within the community repository without spending the time to create the code from scratch.

The $Radix route is more resource economical, cheaper, and faster. Additionally, reusing popular code increases the safety and security of smart contracts.

3. Self-incentivized developer ecosystem.

The current convection within the blockchain space is that each network has created a treasury to fund project development within the specific community.

This typically centralizes decision-making as the treasury decides on who and which projects to fund.

Radix proposes to decentralize the treasury governance and directly incentivize developers to contribute towards the building of the network’s code repository.

Developers can work on deploying modules to be reused by other dApp developers and are therefore compensated by these consequent dApp creators that make use of their code.

$Radix calls this system the Developer Royalties program.

This incentive system has several benefits, including faster dApp deployment times, less vulnerability in code used to create the smart contracts, and stimulating a vibrant development environment.

4. Network scalability

The biggest challenge facing Ethereum is its limited transaction throughput which throttles dApp scalability.

Ethereum currently uses the popular Proof of Work (PoW) consensus mechanism that was first successfully implemented within Bitcoin.

PoW has several demerits including slow transaction speeds and being unfriendly to the environment.

$Radix has opted for the more eco-friendly dPoS mechanism through the Cerberus consensus technology.

To achieve high throughput figures enabling DeFi dApps launched on the network to have fast execution time.

Fast-executing dApps contribute to positive user experiences.

$XRD #XRD #radix @radixdlt

3️⃣ The Radix (XRD) and e-Radix Tokens (e-XRD)

XRD is Radix Protocol’s native platform token issued on the $Radix network. It should not be confused with the e-XRD token. Both of these are sister tokens, except the latter is issued on Ethereum.

The XRD token serves two main purposes:

• Transaction fees – these are the payments made by DeFi dApps to run on the Radix protocol.

Every transaction processed on the platform is paid for using $XRD.

However, these charges are implemented only to deter spamming and any fees collected are burned out of circulation.

• Staking – as a dPoS network, node operators require $XRD tokens to stake.

Staking ensures that they are well incentivized to perform as expected and avoid compromising the network or causing negative outcomes.

Other functions that $XRD and its e-XRD counterpart token can perform include facilitating value transfer.

As assets, users can send and receive both of these tokens as payments for services or goods offered.

Additionally, either token can be used within its respective network for DeFi purposes such as savings, loans or yield farming, etc.

4️⃣ $Radix Protocol is attempting to solve one of the biggest pain points of Ethereum and most other major blockchains – scalability.

With its implementation of the dPoS-inspired Cerberus consensus mechanism, it is able to scale to an infinite theoretical figure.

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That's all fam.

$XRD #XRD #radix