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Function X (FX) is a multi-layered DeFi ecosystem. The protocol combines a flexible cross-chain bridge with a programmable internet service framework. According to Pundi X Labs, the development team behind the project, the goal of the platform is to operate as a bridge between traditional financial services and next-gen DeFi features.
What Problems Does Function X Attempt to Fix?
There are many issues that Function X (FX) was built to eliminate or reduce. Primarily, the protocol was designed to help reduce investor confusion. New DeFi users can find the protocols confusing since they incorporate new terms and options. This has led to slow adoption by mainstream users.
Function X helps to reduce these concerns in multiple ways. For one, the network was built to mirror traditional financial services, which makes it more familiar to users. Features like high yield bank accounts replicate your local bank services but with a much better ROIs.
Another major issue faced by DeFi users is scalability concerns. The world’s top DeFi network, Ethereum, continues to experience transaction delays and other issues related to network congestion. Ethereum users have to contend with record-high gas fees. These fees raise the bar for user onboarding which hurts the entire crypto sector.
Function X (FX) integrates a unique technical structure to avoid similar issues. The network provides high throughput and performance via its multi-chain framework. The protocol is less expensive to conduct virtual machine instances when compared to Ethereum. Additionally, you can send FX globally for a fraction of the cost of sending ETH.
Inflation is a serious concern for investors around the world today. Bad monetary policy coupled with the ongoing pandemic has left the fiat currencies of the world spiraling in value. Currencies like the USD are at the highest inflation levels since the early ’80s. Sadly, inflation robs savers of their holdings.
Function X users avoid inflationary concerns due to the protocol’s limited token supply. Additionally, the network’s staking features remove tokens from circulation during the staking period which drives demand for the asset higher. The community governance mechanisms of the network enable users to vote on token burns and other ways to reduce the circulating supply of FX to ensure inflationary risks are mitigated.
Lack of liquidity
Liquidity issues continue to plague the DeFi sector as well. These issues are the result of a lack of interoperability in the market. Most DeFi ecosystems operate as digital islands with little way of swapping assets with other popular ecosystems efficiently. Functions X integrates a cross-chain bridge that makes it easy for developers to integrate the best features from multiple blockchains into their creations.
Benefits of Function X
There are a lot of reasons why Function X continues to see a growing user base. For one, it provides strong support for the further development of the entire DeFi sector. The protocol was built from the ground up to simplify new trader onboarding. As such, it features an easy-to-navigate interface and low-risk passive income features such as staking.
A critical component of the Function X approach was ensuring interoperability with existing Ethereum protocols and developer tools. The network enables asset aggregation contracts that can connect to Ethereum smart contracts in a permissionless manner. Uniquely, these smart contracts are cable of generating interest at the same time across multiple chains.
Function X provides interoperability that surpasses its predecessors. The system leverages a network of decentralized Validators to provide f(x)Wallet Cross-Chain Transfers. This feature enables you to swap digital assets directly from chain to chain. Its primary purpose is to connect Function X to Ethereum, Binance Smart Chain, and other top-performing DeFi networks.
How Does Function X Work
Function X uses a Scrypt algorithm and cross-chain communication architecture to provide developers and users with more flexibility without reducing security. It consists of f(x)Core which is the base layer of the protocol. Its main purpose is to interlink all assets and cross-chains within the ecosystem.
Function X Chains and Synthetic Assets
Developers can easily create their own Function X Chains and Synthetic assets. These subnets can have their own consensus, governance, tokens, ad more. Additionally, they can offer varying features while leveraging the scalability of Function X.
The CryptoBnk feature is a DeFi service that replicates your traditional savings account. The main difference is that because there are no centralized bankers to be paid, you receive a much higher APY. You can also stake using this feature. Staking requires you to provide liquidity to a smart contract for a preset time. In return, you receive rewards based on your stake.
Consensus Function X (FX)
Function X leverages both Proof of Work (PoW) and Proof of Stake (PoS) consensus mechanisms. The Practical Byzantine Fault Tolerance (pBFT) PoW mechanism provides top-notch security for the network. The PoS systems provide scalability and high-transaction throughput.
Users can store their FX in the Function X Wallet. This network-built wallet provides access to portfolio tracking information such as your past transactions, current holdings, tokens values, and other stats. The wallet is simple to use and requires no previous cryptocurrency experience to operate. Notably, the Function X wallet is PC-based.
FX is the main utility and governance token for the Function X DeFi protocol. The token launched as an ERC-20 asset on the Ethereum network in 2019 with a maximum supply of 1.9 billion tokens. In 2021, Function X launched a proprietary blockchain. At that time, the network began to issue tokens on this network.
FX serves a vital role in the Function network. This versatile digital asset can be used for smart contract creation and data storage. It’s required to participate in any of the governance protocols. You can also stake FX tokens to secure low-risk passive incomes. Notably, your rewards are paid out in FX tokens which can then be added to your original stake to improve future ROIs.
FX is required to collateralize the creation of synthetics. Synthetics leverage the scalability of the Function X protocols. They can operate as stablecoins with their value pegged to another asset such as gold or the USD. They may operate as collateral when launching new cryptocurrencies or utility tokens supporting other subnets.
How to Buy Function X (FX)
Function X (FX) is available on the following exchanges:
KuCoin – This exchange currently offers cryptocurrency trading of over 300 other popular tokens. It is often the first to offer buying opportunities for new tokens. This exchange currently accepts International & United States residents.
Coinbase – A publicly traded exchange listed on the NASDAQ. Coinbase accepts residents from 100+ countries including Australia, Canada, Singapore, UK & the United States (excluding Hawaii).
Gate.io – This exchange was established in 2013, and is one of the more popular & reputable exchanges. Gate.io currently accepts most international jurisdictions including Australia & the UK. Canada & USA Residents are prohibited.
Function X (FX) – A Flexible and Scalable Alternative for Developers to Consider
Function X has all the features that Ethereum developers love and more. The network’s unique dual consensus design gives it scalability and security. Plus, it’s far cheaper to host Dapps and create new tokens. For these reasons, you can expect Function X’s network to expand over the coming months as new protocols leverage its unique features.
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