Intro
The AXIA Network testnet officially launched this week, marking an important milestone for AXIA and its entire global community. The AXIA Network will become the vessel through which developers and individuals can access all of the benefits of the project’s ever expanding ecosystem and highly favorable hyper-deflationary tokenomics.
The majority of successful crypto projects have launched their own blockchain networks. And, it is no secret that there are many, many issues with 1st and 2nd generation blockchains like Bitcoin and Ethereum such as congestion, high fees, wealth concentration, a lack of interoperability and decentralization, as well as high barriers to entry. With technology having advanced significantly since these networks first launched, there is now ample opportunity to build on what has worked (and what hasn’t) with these legacy blockchains to achieve a superior platform — one that can finally take the industry to another level in which it is capable of fulfilling the potential that has not yet been realized. While there have been notable recent attempts at doing so, no networks have ticked all the required boxes simultaneously to truly bring blockchain to the mainstream — until now.
Introducing: The AXIA Network.
How does the AXIA Network work?
The blockchain networks of today do not address the challenges of sound tokenomics and usability. In some cases, the value of a network’s coin is tied to poor economics or is simply considered a speculative instrument. In other cases, the transaction costs increase with growing network activity. Furthermore, congestion also dramatically hinders transaction speeds on many blockchains. Interoperability challenges are being met with short term mechanisms which do not provide a true solution that is sustainable over time. The level of negative environmental impact also grows as many of these networks become more popular. Plus, there are also the ongoing concerns that with so many coins being held by so few, this can lead to a lower level of decentralization as well as enhanced market risk.
What is required is a blockchain that not only addresses these challenges but will regularly evolve through development and advancement in technology while remaining resilient at all times and consistently generating value that can grow over time for its ecosystem and stakeholders.
The AXIA Network is the first ever hyper-deflationary network. It is a next generation blockchain that provides far superior tokenomics for its users, offers a higher level of decentralization, and enables the true facilitation of interoperable blockchains. It is also more energy-efficient and supports mobile staking that can bring blockchain technology to the mainstream - all while maintaining low gas fees and fast throughput. Let’s take a look at how this works!
AXIA Network Architecture
The AXIA Network has one primary blockchain, which is called the CoreChain and empowers the shared security for the network and its inclusive consensus. Additionally, there are AllyChains that are connected to the CoreChain and inherit the shared security of the network. The AllyChains have their own completely independent application-specific blockchains with their own governance, native token and business processes, each of which will benefit from all the strategic advantages that the AXIA Network offers all participants. This AllyChain structure is unlike existing blockchain networks today as it provides a greater level of interoperability and decentralization with far superior economics.
AXIA Coin is the native coin of the AXIA Network. Transactions will be processed in AXIA Coin and the value of its hyper-deflationary economic design will be extended from the CoreChain to the AllyChain and benefit all users and participants.
The AXIA Network uses the inclusive Proof-of-Participation (PoP) protocol, the AXIA-upgraded version of Proof-of-Stake (PoS). PoP builds on earlier protocols to deliver a new and improved model that is more efficient, much better for the environment, offers a higher level of inclusivity, and several other strategic advantages.
PoP provides deterministic finality and which requires multiple registered Validators. Validators stake AXIA Coin and help secure the AXIA Network by validating the transaction proofs. The Validators receive unrivaled staking rewards in AXIA Coin for each block that is published on the chain. The security and inclusiveness of the AXIA Network is further enhanced through Nominators. These participants play a vital role in the AXIA staking and security process as they can stake their AXIA Coin simply through using any electronic device such as a mobile phone in order to select and nominate trustworthy Validators.
While the AXIA Network architecture is understandably much more complex than what has been covered here, this provides a strong introduction for newcomers. Here is a quick summary of what has been detailed:
CoreChain — The primary blockchain for the AXIA Network.
AllyChains — Blockchains that can be seamlessly connected to the CoreChain, but feature their own native token and governance. AllyChains run on their own independent blockchains.
AXIA Coin — The native currency of the AXIA Network, offering a superior hyper-deflationary economic model that benefits all participants on the blockchain.
Proof-of-Participation (PoS) — The protocol for the AXIA Network, which is an AXIA-upgraded version of Proof-of-Stake (PoS).
Validators — Elected participants on the AXIA Network that help secure the blockchain by validating transaction proofs.
Nominators — These participants elect the Validators on the network and can also stake AXIA Coin through a simple mobile app.
How does the AXIA Network solve the inefficiencies of alternative networks?
As outlined in the intro, there are a plethora of issues holding back the blockchain industry. The AXIA Network will address each one through its superior economic structure and more advanced technology. This section will explore the main impediments to success with other blockchains and outline specifically how the AXIA Network addresses them. Let’s get started!
#1 — Congestion (Slow Speed)
While Bitcoin was unquestionably a revolutionary technology when it was introduced in 2009, the reality is that the earliest blockchains simply cannot compete with the technology of today. The Bitcoin blockchain can only process around a paltry 7 transactions per second, while Ethereum hovers around 15. These speeds are not nearly fast enough to keep up with the market demands of the modern digital age.
The AXIA Network is able to offer higher throughput for transactions across the blockchain, helping to take DeFi to the next level and building the foundation for the AXIA Ecosystem. It supports multiple blockchains operating in parallel simultaneously; this architecture means that tasks are not simply added to the queue. Instead, a string of processes can be executed in tandem, resulting in higher throughput and alleviating concerns around congestion. With this system in place, several sets of Validators can be confirming different processes at any given time. On the AXIA Network, block generation is 6 seconds and TPS (transactions per second) is 1365.5, meaning it has the capability for much more traffic and at much higher speeds than earlier alternatives.
#2 — High Fees (Expensive Gas)
Ethereum is the most used blockchain today, but due to egregious fees that have reached up to $70+ on average and the slow transaction speeds outlined earlier, it is not a long-term solution in the space. In reality, Ethereum is only the most used blockchain because of the user base it has built up. But now that a true and viable alternative has emerged in the AXIA Network, migrating off of the network should become a no-brainer.
In order to deliver tremendous value to all participants, all the transaction fees accrued within the ecosystem and across the AXIA Network are burned to reduce the Total Supply in a consistent fashion. This will ensure that the blockchain and its native AXIA Coin are constantly providing value to the coin holders; that, plus all of the other advantages of the hyper-deflationary tokenomics come together to create an unparalleled store of value. Additionally, to the further advantage of all network users, a unique algorithm has been designed to balance market activity and gas fees in order to deliver a more stable, secure and scalable network. This system will ensure that gas fees, which are burned anyway, will remain a fraction of the cost of other networks.
#3 — Energy Inefficiency (Damaging Environmental Impact)
Early blockchains use the Proof-of-Work (PoW) consensus to validate transactions and mine new tokens. PoW blockchains are very energy inefficient so as they increase in popularity and usage, the amount of energy they consume can be highly damaging to the environment. Not only does this create a huge drain of energy resources, but it also does not fulfill the requirements of high levels of decentralization by connecting all people in the decision-making process. The alternative to the PoW consensus algorithm is PoS. The PoS consensus allows cryptocurrency miners to mine or validate block transactions based on the number of digital coins a miner holds in the protocol.
The AXIA Network uses PoP, a variant of a PoS consensus mechanism. It consists of two actors — Validators and Nominators. The general role of Validators is to produce new blocks and guarantee finality of transactions. Nominators stake their coins and can then delegate up to 16 Validators of their choice. In turn they receive a part of the unparalleled staking rewards earned by the Validators for their services. As a result, the PoP consensus mechanism eliminates the need to resolve elaborate computational challenges, thus getting rid of the issue of excessive energy consumption at a faster speed and at much lower cost.
#4 — Wealth Concentration and Lack of Decentralization
A major deficiency beside the detrimental impact to the environment of PoW and PoS blockchains is that the mining protocols are not inclusive and can lead to more wealth concentration and centralization due to the number of barriers to entry for many. Networks like Bitcoin have become virtually impossible for everyday individuals to participate with when it comes to mining due to the enormous amount of computing power and associated capital that’s required to be successful. Ethereum meanwhile requires participants to hold a minimum of 32 ETH (over $100,000 in today’s prices) to become a Validator on its Beacon Chain. These systems enhance wealth concentration and create more centralization since the entities that can afford to participate become wealthier and acquire larger shares of the network while individuals are increasingly shut out.
AXIA, on the other hand, lowers barriers to entry and invites anyone and everyone from around the world to participate in staking on the network through a simple app on a cell phone or other mobile device. This is something that can conveniently allow people from all around the world to connect to the network—a structure that can bring blockchain technology and AXIA to the mainstream. The AXIA Wallet mobile app (AXwallet) allows anybody to instantly become a Nominator on the blockchain and begin to earn passive rewards for their stake in the network. This means that regardless of your location, background or how tech-savvy you are, you can join in and benefit from all the advantages the AXIA Network has to offer. Due to the lack of hurdles required to participate in the PoP consensus mechanism for both Validators and Nominators, there is a much higher degree of decentralization when it comes to the AXIA Network versus other blockchains. Additionally, PoP also assists in offering a higher level of security on the AXIA Network as compared to alternatives.
#5 — Lack of Interoperability
Another glaring issue with 1st and 2nd generation networks is that they were not built with interoperability and cross-chain functionality in mind. The architecture of the AXIA Network CoreChain and AllyChains enables multiple ecosystems to communicate with one another. This interoperability substantially enhances the efficiencies of the protocol.
The CoreChain/AllyChains structure enables the connection of various blockchains not only in terms of the respective native tokens but also the desired data exchange between chains to create a completely interoperable environment. Rather than various blockchains functioning as individual networks, the architecture facilitates the coming together of several chains that can function as a single network, thus delivering on a spectrum of use cases. The AXIA Network will bring interoperability through its intrinsic design that facilitates the capability for an AllyChain to operate Ethereum-based smart contracts, as well as those for other networks seamlessly and conveniently while communicating with the AXIA CoreChain simultaneously. This can be executed without a requirement to make alterations, and will position the AXIA Network as a market leader in terms of interoperability and cross-chain functionality.
Conclusion
It’s important to keep things in perspective when it comes to the AXIA Network; after all, the testnet has only just gone live. New functionality, technology, applications, development, enhancements, etc. will continue to be rolled out regularly in order to ensure that the AXIA Network is always delivering optimal value to all of its stakeholders and participants.
In the coming weeks and months, several developer engagement strategies will be activated such as grant programs, hackathons, and more, in order to build up the strength, use cases and overall activity on the AXIA Network. The entire AXIA team is extremely confident that once developers spend some time on this blockchain and see all the advantages it has to offer — including the unrivaled hyper-deflationary tokenomics of AXIA Coin — it is only a matter of time before the AXIA Network is able to amass one of the strongest developer communities in the space.
Years in the making, the AXIA team has spent a great deal of time, energy and resources on ensuring that the AXIA Network can and will address the many inefficiencies that exist in the blockchain space today. As the team continues to build towards the mainnet release of the AXIA Network, there has never been a more exciting time to join AXIA and claim a stake in the future of this project, which will stop nothing short of its goal to create a more rewarding future for billions of people around the world.
For more resources on the AXIA Network, please see below:
