What Is e-Radix (eXRD)?
e-Radix (eXRD) is a cryptocurrency developed on the Ethereum platform under the Radix project. According to the website of the asset, the Radix project is an ecosystem developed by the Radix team, which comprises multiple phases of Radix’s utility that includes:
Radix as a software: There are three different softwares launched by the Radix team, which include Radix node software, Radix Explorer, and Radix desktop wallet. All three can be used by participants within the Radix ecosystem to participate and transact within the Radix ecosystem.
Radix as a protocol: It is a set of guidelines that controls and provides directives to validators’ nodes that run Radix’s node software. Further, the protocol is backed by Radix Engine, an application layer that can run smart contracts, and Cerberus, a consensus protocol mechanism particularly developed for Radix blockchain, thus allowing the Radix protocol to act as layer 1 protocol that can support and serve DeFi. A layer 1 protocol is a base layer for distributed ledger technology with its own tokens, smart contracts for developing DApps, and irreversible transaction structure.
Radix as a network: It is a public network functioning on the Radix protocol to develop a platform that can support users, DApps (decentralized applications), and DeFi (decentralized finance).
Radix as a ledger: The decentralized public network of Radix functions using a permissionless and immutable ledger. This permissionless ledger ensures that participants on the network do not have to trust or know each other for the Radix blockchain system to operate. Further, the immutable component ensures that transactions on the Radix blockchain are irreversible in nature.
These utilities of Radix make up the ecosystem of the Radix project. It is a project that signifies a decentralized network, which can help developers build their DeFi platforms with better security and scalability while protecting DeFi from hacks and exploitation. Further, to ensure this project can operate smoothly and ensure transactions within the project can be performed, Radix introduced its cryptocurrency, the Radix token (XRD).
XRD is the native utility token of Radix and facilitates all operations within the Radix ecosystem. The token is used for staking, collecting fees, trading, and exchanging products and services within the Radix ecosystem. Further, to ensure the XRD token can support transactions on the Ethereum blockchain, Radix introduced another cryptocurrency, the e-Radix token (eXRD).
eXRD is the Ethereum-wrapped version of the XRD token on the Ethereum network represented as an ERC20 token. The term wrapped token signifies a financial representation of the underlying token, in this case, XRD, which facilitates the value and representation of the underlying token on other blockchains. The cryptocurrency eXRD acts as a common link between the Radix project and the Ethereum space. eXRD enables token holders in the Radix project to experience decentralized finance opportunities on the Ethereum platform. Token holders can exchange or interchange between the two tokens of the Radix project—XRD and eXRD—with the help of Instabridge or Bitfinex. Bitfinex is a decentralized exchange (DEX) that facilitates token exchanges. Instabridge is a service developed by Radix to facilitate the conversion of eXRD to XRD.
This overall structure of eXRD highlights the huge role the token plays in facilitating a dual-chain DeFi operational structure for users on the platform.
History of e-Radix (eXRD)
The e-Radix (eXRD) token was launched in November 2020 as a tokenized framework by the Radix project to facilitate participation in Ethereum DeFi space and vice versa. According to the website, the Radix project was founded by Dan Hughes in 2013 and is headed by CEO Piers Ridyard. Further, the latest whitepaper of Radix was released on January 4, 2022. According to the smart contract address on the website of the asset, the e-Radix token has a maximum total supply of 4,410,000,000 eXRD.
How Are e-Radix (eXRD) Tokens Created?
e-Radix (eXRD) tokens are wrapped versions of XRD tokens of the platform. The token is developed on the Ethereum network using a smart contract and is represented as an ERC20 token to facilitate participation in Ethereum’s DeFi space.
