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AMA with Stakenet (XSN) | Transcript

AMA sessions are back! The first one we held this year was with Stakenet (XSN), whose representatives revealed some interesting facts about the project and the upcoming features. To get all the details, check the transcript provided below.

Q: Could you explain how Stakenet works, and what are the advantages of the Stakenet DEX compared to others? Are the fees at Stakenet DEX more user-friendly?

XSN: Today DEXs are on-chain, which means you have to pay an on-chain transaction fee/gas when trading. This can get very expensive, and anyone having used Uniswap recently can attest to it. In addition to the on-chain fee, you have to pay a trading one as well. Besides, when you do a swap, you should wait for the on-chain transactions to be confirmed, which can take a long time (30+ minutes). Also, it can all be tracked on the blockchain, so is not very private. Our DEX operates on Layer 2 using Lightning Network and Connext Network. Once you are on Layer 2, there are no on-chain fees, so you can trade as much as you want. The only fee is the trading one, which is lower than that of Uniswap, which is 0.3%.

Our transactions are instant and off-chain, so they are much more private. Moreover, we use professional trading tools, like aggregators for liquidity. These can be linked to any other exchange, i.e., Bitfinex, Binance, WhiteBIT, and so on. Thus, you can trade everywhere from one place. To find out how it works, check out this video. Near the end of it, there are live trades on a really old version we have that was aggregating from Livecoin and Binance.

Q: How many wallets does XSN currently support? Do you have any plans to build your own wallet?

XSN: You can store XSN on either our own Core Wallet, our Cloud Staking site, or Ledger and Trezor devices. Soon, our new multicurrency light wallet will be released. As our token is not an ERC-20 one, we have our own blockchain and our own wallet.

Q: How are you planning to raise awareness about your project in different countries/regions where English is not spoken well? Do you have local communities to help users gain a better understanding of your project?

XSN: We have lots of native language channels for our community on Telegram, Discord, and Twitter, along with a few localized Medium pages. If anyone is interested in raising awareness of our project in their local region, please let us know. We have open ambassador positions for various countries/regions, so you are welcome to apply 👍

We have multilanguage Discord channels. As for Telegram, here is a list of our localized channels:

  • @Stakenet_XSN_German (German)
  • @stakenetXSNru (Russian)
  • @Stakenet_XSN_French (French)
  • @Stakenet_Turkish (Turkish)
  • @stakenetBrPt (Portuguese)
  • @Stakenet_vietnam (Vietnamese)
  • @Stakenet_XSN_NL (Dutch)
  • @Stakenet_XSN_Italy (Italian)
  • @Stakenet_XSN_Spanish (Spanish)

And do not forget about our main channel for English speakers!

Q: There are 3 core issues in the blockchain industry: security, scalability, and interoperability. The solution to them will bring competitive advantages to blockchain projects. How is Stakenet planning to solve these problems?

XSN: Scalability is covered by our use of Layer 2 tech, which makes it theoretically infinitely scalable. For security, we are constantly pushing innovative solutions. A good example is our Cold Staking tech TPoS and to-be-launched Cold Exchanging, where you will be able to trade directly from your Cold Storage device, like a Ledger or Trezor.

As for interoperability (the main focus of ours), the solution is building bridges between different blockchain technologies. Our current bridge is Lightning Network (BTC, LTC, and others) and Connext (ETH/ERC20) on Layer 2, allowing for instant, feeless/gasless, and private transactions between them. We now have running BTC<>USDT over Layer 2, which is pretty much the world’s first one through a GUI.

Q: In the future, will Stakenet be developed with more utilities? How are you going to add value to Stakenet?

XSN: Our DEX is just the first dApp on the platform and is needed to act as a bridge between all the other blockchains. We are also planning to add Oracles, CPU, DB services, Watchtowers, TOR services, collateral backed stablecoin, and much more.

We see a lot of potential in SaaS in the realm of CPU/GPU demanding operations, as it is expected to disrupt centralized organizations, like AWS/Microsoft Azure and others. This will be one of our aims for increased chain utility after the DEX is established.

Q: What real-world problems can XSN product solve and in which ways?

XSN: Real-world use cases are in the realm of adoption of stablecoins used to pay for goods and services. USDT/USDC could be used to buy groceries in shops in the very near future, especially in the regions where the local currency is not that stable. Our Layer 2 tech enables the conversion of assets. For example, you could buy goods worth 10 USDT and pay for them in any asset using our multicurrency wallet. During the payment, that asset will be converted into USDT for the merchant/retailer. Fast conversion of assets is something we believe will see a huge surge in demand in the near future.

Q: There are two types of nodes powering the Stakenet blockchain: Staking Nodes and Masternodes. Could you explain the missions of each one and the difference between them?

XSN: Staking nodes ensure network security, while Masternodes provide decentralized infrastructure for services and dApps, such as DEX. Both of them earn block rewards, but Masternodes get additional income by providing services. An example would be the Masternodes helping to run a DEX that are awarded the trading fees collected from it. As for staking, you can use any amount of XSN, whereas for Masternodes it is 15000 XSN per Masternode.

Q: You often use the word “lightning network” when speaking about DEX. What does it mean in this context?

XSN: We operate on Layer 2, using various Layer 2 technologies. For Bitcoin, Litecoin, and others, we use Lightning Network as the Layer 2 technology. For Ethereum and ERC20 tokens, such as USDT, Link, and so on, we use Connext Network, which is essentially a Lightning Network for Ethereum. Most today DEXs are built on Ethereum, so they cannot interact with chains like Bitcoin unless wrapped (meaning compromised centralization).

When wrapping an asset, you are handing control over it, and you get a token you have to trust. At some point, you will be able to redeem the real asset. If something happens, for instance, the actual Bitcoin gets hacked, the token you have becomes worthless. We do not use wrapped assets but the real ones, so that level of trust is not needed. You can read more about Layer 2 vs. Sidechains/wrapped assets in this article.

Q: Does XSN have any coin burn/buyback systems or any token burn plans to increase the value of the token and attract users?

XSN: Yes, our initial order book/DEX HUB operators are planning to take 10% of the trading fees from the DEX to buy and burn XSN. This way, they will reduce token supply and create buying pressure on the DEX.

Q: In recent years, technologies around the Layer 2 blockchain have developed dramatically. How does Stakenet fit into the boom of Layer 2 networks? What makes it unique and different from similar platforms?

XSN: We knew Layer 2 solutions would be necessary, so we have been working on it for the last two years. Now, everyone is starting to realize the issues related to the on-chain congestion. As the demand grows, so do the fees and confirmation time. It is becoming too expensive and slow to carry on this way. Everybody seems to be adopting the “Layer 2” phrase, but most of them are not the real Layer 2 (backed directly by the security of the original chain itself). Such solutions will eventually face bottlenecks or security sacrifices. Unlike them, ours is a true Layer 2 one: once you move off-chain, you are free from the burdens of being on-chain.

Q: Why did the Stakenet blockchain decide on the TPoS consensus instead of others, such as PoS or DPos? What are its advantages?

XSN: We invented TPoS (Trustless Proof of Stake) to enable cold staking. There are many advantages to TPoS over other PoS consensus mechanisms. For more info, check out this article.

Q: I am a white hat hacker on the Internet. Do you think XSN is secure enough from hackers? Does your project have a program that rewards individual vulnerability XSN detection of the system?

XSN: We have bounties running for this kind of thing. So you are welcome to take part and get rewarded for any exploits you find!

Q: Stakenet allows users to stake coins in cold storage and receive rewards offline. How realistic is it?

XSN: Our cold staking has been running since the launch in 2018. Thus, it has been operational for two years, proving the viability of such a solution.

Q: How did you come up with the idea of combining Lightning Network and Masternodes? What is your inspiration and motivation to build and grow Stakenet?

XSN: As MNs already have collateral and potential liquidity locked on the network, we decided to “put our solution to work” to generate extra revenue for MN owners and provide liquidity to L2 at the same time.

Q: Many people are aware of what Stakenet is developing in terms of the DEX, but the roadmap scope is much broader. What are the developments long into the future some of X9 are most excited about?

XSN: X9 is particularly excited about utilizing our Masternode’s (currently numbering over 2700+) CPU, GPU, and DB capacities. They already exist to provide unique services that could disrupt centralized SaaS models. Besides, we are also excited about other consensus innovations, such as Oracles, which our MN network can be applied to. This would incorporate real-world events onto blockchains in realtime.

Thanks for your questions and get ready for more!

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