In today’s age of digital transactions, two channels enable financial engagements to take place: centralized financial systems and decentralized financial systems. For the former, certain challenges hinder its scalability in the system. They are poor liquidity, zero access, and high costs.
Radix comes in as a decentralized finance protocol engineered to provide sustainable solutions to the problems of centralized financial systems. With Radix, a centralized financial system has access to premium first layer 1 protocol for building top-notch user service and financial apps.
What promise does Radix hold for the market?
This innovative new technology will possibly hit the market with four amazing applications for decentralized finance.
· Radix engine
· Component catalog
· Developer royalties
Let’s breakdown all four concepts
Most people probably think Greek mythology when they hear the word mythology. For this Radix application, we are not referring to a multi-headed monster but we would see why it’s named so. Cerberus is a modern technology that creates multi-lane, incredible highways that can process a huge amount of transactions in parallel. This is completely unlike your crypto entities; Bitcoin, Ethereum, Tron, and so on. Cerberus addresses blockchain’s most challenging problems: scalability.
How does Cerberus create its magic?
By modifying the sharding technique. In the blockchain, sharding is used to chip massive databases into smaller, more adaptable chunks. This inventive technique makes use of pre-sharded data structure capable of amassing data as vast as that of Google in small 0.5byte chunks.
There’s more. this pre-sharded data structure will group organize related transactions in one group and unrelated transactions in another group. Super intelligent right? Operations in which this takes place span as voluminous as 115.79 quattuorvigintillion shards. Also, Cerberus has the unique ability to attain finality within 5 seconds compared to other blockchains which require multiple confirmations before a transaction is given the green light.
The Radix engine is that part of Radix developers interacts with directly. It is commonly known as the application layer for Radix. While it’s pretty easy to spot the similarities between the Radix engine and popular smart contract platforms such as Hypeledger or Ethereum, Radix engine has its distinct feature; an innovative development that allows it to build business systems as well as applications at a rapid-fire pace.
Where a smart contract is concerned, this an impressive paradigm shift. These systems and applications fully utilize the provisions of DLT. Earn Components are defined by Actions as is the case, it produces two results:
· Components intuitively begin to take on characteristics of physical assets and primitives (finance building blocks). This development makes it easier to evaluate.
· Components become more predictable and intuitive
In simple terms, the Component catalog builds on the groundwork already laid by Radix engine. This possible Defi application allows developers to create, distribute, extend, and combine modular Components through decentralized a ledger hub. This mechanism accelerates dApp builds.
With the Component catalog, developers have the option of permitting free use of their Components or affixing a royalty for on-ledger use. For a quick, trustworthy process, developers can also safely integrate Components into larger Components.
Components in the catalog can be likened to inactive blueprints or inactive templates. These inactive templates can, however, be used to develop a series of active components designed using the same pattern as that in the Catalog.
This prospective Radix application is one of the first to ever be designed.
What part does Developer Royalty play?
This application is primarily programmed to ensure the smooth running of DeFi innovation and speed it up.
Developer Royalties function using protocol-level inducements with an interesting similarity to that of network operators developed by crypto mining. With this, developers can contribute in whatever amounts they wish. Any of these Components can go on to become standards on the platform.
What the Developer Royalties System does in Radix is to create a dispersed channel through which developers can speed up the capability of others to utilize this core functionality by building atop it while generating revenue for their quota in the Radix ecosystem.
Here’s a unique feature of the Developer Royalties System.
This application has all the necessary data on-ledger to make it visible. But it requires front-end service in the proper order. What Radix does is to provide a first option called the Developer’s Guide.
The Developer’s Guide collects contents of the Catalog and all initiated Components for presentation in an interface designed much like an app store. Think of the Developer’s Guide like blockchain police. It fishes out copycat developers, exploitative components, and any other infringement of regulations enclosed in the guide.
Lastly, engagements between developers and users are overseen by Radix. This interface is not only completely decentralized, Radix is not entitled to a commission off developer royalties.
With all of this information on the unique characteristics of these possible DeFi applications, you can say that the Radix advantage is failsafe, especially with Cerberus, its multi-lane ‘monster’ so to say. With the combination of these four possible applications in the field of decentralized finance systems, Radix is guaranteed to scale with any demand while maintaining composability.
In terms of connectivity, Radix possesses unlimited atomic composability that allows it to function without limiting its inherent scalability. Instead of smart contracts, the DeFi system can use the finite state machine called Components and enjoy the fast development of common financial components in on-ledger catalogs.
The list is infinite when it comes to the number of things the Radix technology can do to give users a smooth sailing experience. What Radix sets out to do is to foster the expansion of DeFi and eliminating limitations through a protocol that allows secure, quick development of applications that are commercially viable enough while DeFi remains at scalable and composed.
When it comes to DeFi, the degree of growth taking place is exponential as it is progressive. This means that it needs a protocol to adapt well to these changes. This is why Radix is the future of DeFi.