We are glad to announce that Function X Testnet 2.0 (aka Beta 2) concluded on September 30, 2020. With this milestone we’ve achieved together, it’s now time to focus on the development and release of the third iteration of Function X Testnet. The Testnet 3.0 will be the final testnet before the mainnet is released. Testnet 3.0 is not just an enhancement of existing features but also introduces some exciting new things under the hood. Let’s take a look!
Components of Function X Testnet now include a wallet app, an explorer, a platform to set up nodes, a platform to create a private blockchain and the faucet to get free testnet tokens. With testnet 2.0, we’ve made it possible to experience the quick and hassle-free creation of a blockchain and digital assets through FX Cloud. No coding skills required. Function X members have created 28 blockchains within 10 days.
This will serve as an easy way for businesses to tokenize their assets. In our guide on creating a blockchain in Function X Testnet 2.0 you can find here that we explore the subject of asset tokenization.
Function X Testnet 3.0 will test the cross-chain transactions.
With the next version of our testnet, we are planning to introduce one of the key components our ecosystem requires; cross-chain transactions including sending and receiving ETH from the Ethereum chain to the FX chain and cross-chain transfers among blockchains on the FX network. So we will be seeing some tokens flying from Ethereum into FX network, and vice versa! In Function X Testnet 3.0, you will see Ethereum testnet will be used to connect to Function X Testnet 3.0 to perform cross-chain transactions.
Introducing the relay nodes AKA “Project Space Station”.
As mentioned in a previous HashOut, Function X has cross-chain interoperability and key to getting this working is understanding the concept of relay nodes.
A relay node won’t participate in block creation. Its main responsibility is to synchronize the transactions from one chain to another chain, otherwise, the cross-chain transaction cannot be completed. The relay node can run on the same server as the validator node, but those would be two different services.
At the same time, multiple relay nodes also manage the assets in a certain contract of Ethereum through multi-signatures.
Here is an example of how it works.
When address “A” sends 1ETH from Ethereum to address “B” on the FX Chain, the 1ETH will be sent to a “multi-signature contract,” The transaction has input data, which is the address “B” from the FX Chain.
After the relay node discovers the transaction on Ethereum, it re-packages the transaction and sends it to the FX Chain. Once other validators on the FX Chain verify the signature of the transaction, the transaction is successful. The address B on FX Chain will receive 1 FX-ETH (which is 1 ETH on the FX Chain). The same process in reverse is applied when sending assets from the FX Chain to Ethereum.
Function X will have a DEX platform that will provide a decentralized trading venue for synthetic FX assets, with lower cost, faster speeds, and more comprehensive functions than the Ethereum network. It is a complete ecosystem with cross-chain functionalities and De-Fi products.
A similar concept was introduced in the Ethereum network in the form of creating a relay between BTC in the Ethereum network in the form of WBTC.
Our thoughts on offering De-Fi products and services on Function X
Are we going to offer De-Fi products? Short answer: yes. Long answer: it’s probably not the De-Fi you are thinking about.
The focus of our De-Fi service is not just swapping, but focusing and providing synthetic assets.
Online lending is growing across the world, especially the peer to peer (P2P) lending market. According to the report published by Allied Market Research, the global P2P lending market generated $67.9 billion in 2019 and is estimated to reach $558.9 billion by 2027, registering a compound annual growth rate of 29.7% from 2020 to 2027.
Source: https://www.alliedmarketresearch.com/peer-to-peer-lending-market
The global lending market is covering home loans, personal loans, credit cards, home-equity lines of credit, credit card cash advances, small business loans and more.
Today, the De-Fi tokens and other tokens are not capable of carrying out the synthesis of collateral digital assets, which somehow limits its application. We aim to provide this service and digitize the collateral and generate synthetic assets based on the capabilities of the FX chain to broaden the De-Fi product line.
Any feedback or suggestions? Please feel free to discuss via the official Reddit channel.
