Blockchain technology is evolving at a rapid pace and various developers are looking for innovative solutions to deal with emerging challenges in the crypto industry. Currently, one of the biggest challenges faced by the blockchain ecosystem is scalability. To deal with these issues, Onyx Protocol was launched which aimed to modernize financial systems.
A cloud-based blockchain infrastructure Onyx Protocol helps businesses by providing a secure network to issue, store, and transfer digital assets without any risk associated. Using the Onyx Protocol, firms can integrate blockchain technology seamlessly into their existing infrastructures.
In this article, we will look into the basics of the Onyx Protocol, its creation and working, and native XCN token. We will also understand the importance of the Onyx Protocol and its future.
What is Onyx Protocol?
It is a decentralized blockchain that is developed with the goal of providing financial services by offering a scalable and efficient platform for decentralised applications (dApps) and other blockchain applications. It facilitates Layer 3 scaling solution that assists in enhancing transaction throughput and reduces fees.
This Protocol is built on top of existing Layer 1 and Layer 2 networks which utilize the security and decentralized components of these layers while also introducing new enhancement features to address scalability and efficiency challenges. These features of the Onyx Protocol help in instant transaction confirmations and low fees, essential components of modern financial applications.
Who Created Onyx Protocol?
The Onyx blockchain network was founded in 2014 by venture capitalist Adam Ludwin with the support of several other venture capital firms. The founder launched Chain Core after getting $40 million from partners like NASDAQ, Orange, Capital One, and Citigroup.
In 2018, Onyx Protocol saw a major shift in operations as it was sold to Lightyear Corporation (Part of Stellar Development Foundation). However, the platform is now operating as a private company with new offices, shareholders, and a fresh team of board of directors.
History of Onyx Protocol
The protocol was mainly designed to solve various challenges faced by blockchain technology which is related to its infrastructure primarily in the context of financial services. The developers of the Onyx network found the need for a more scalable and efficient solution and hence focused on creating a Layer 3 blockchain ecosystem to improve performance without compromising on the security aspect.
With time, the Onyx Protocol has advanced with latest upgrades in the blockchain technology to improve its functionality. The recent release of the V3 Whitepaper of Onyx Protocol marked a significant milestone that has outlined the architecture of Onyx and its growing focus on financial-grade applications.
How Onyx Protocol Works?
Onyx Protocol allows for more than two independent blockchain ecosystems to exist and work together, even if they are managed by different firms. The Protocol uses the principle of least authority which means that the control over assets is kept separate from the control over ledger synchronization, ensuring maximum.
The Onyx cloud protocol helps various network participants to define and issue assets by creating their own “issuance programs.” After they have been issued, units of an asset are kept in custody by “control programs,” which are written in a flexible and Turing-complete programming language that may be used to create sophisticated smart contracts for blockchain networks.
Each blockchain network is secured by a group of “block signers”. The system is protected against forks as the majority of the block signers follow the protocol. To increase efficiency, the protocol assigns block creation to a single “block generator.” Any node on the network can submit transactions and validate blocks.
The Onyx core software is an enterprise solution that utilizes the Onyx Protocol.
Onyx Protocol’s Native XCN Token
XCN, also known as Onyxcoin, is the native token of the Onyx Protocol. Currently, it is priced at $0.01555 with a market cap of $510.548 million. This XCN token serves as the utility and governance token of the Onyx Protocol. In 2022, the token’s name was changed from CHN to XCN, and the holders of CHN tokens received XCN tokens at a 1:1000 ratio.
Onyxcoin (XCN) was built on the Ethereum blockchain and serves various functions. The token has a total supply of 48.4 billion tokens, out of which around 30.79 billion are in circulation.
Utility of XCN Token
- Onyxcoin, being a governance token, allows token holders to vote on various community initiatives and decisions related to protocol upgrades.
- This token also serves as the payment method for Onyx Cloud and Sequence fees which provide discounts on various services.
- XCN token includes several features including staking that permits its holders to stake and earn rewards.
- The token facilitates node deployment and other important functions within the Onyx ecosystem.
Why is Onyx Protocol Popular?
Reasons behind the increasing popularity of Onyx Protocol is its unique features.
- Staking and Governance: Because of the token’s staking and governance feature, it has attracted various investors which promotes high growth and community engagement.
- Scalability and Low Transaction Costs: The most important features of the XCN token are its scalability solutions and providing a cost-friendly alternative to Ethereum’s Layer 1 gas fee which makes it popular among users.
- Advanced Tokenomics: The tokenomics of XCN token is quite advanced. It includes a periodic token burn and controlled token distribution which helps in managing supply and may increase its price in the long term.
- Release of XCN Whitepaper: The recent release of Onyx’s V3 Whitepaper has provided clarity that covers future roadmap, its governance structure, and expanded token features.
Future of Onyx Protocol
Looking at the emerging crypto market, Onyx Protocol aims to further boost the platform by exploring new technologies and expanding its ecosystem. The future plans include integrating and upgrading advanced features of blockchain technology.
Onyx Protocol is focusing on financial-grade blockchain applications which will be beneficial for XCN as it will contribute to the future of decentralized finance (DeFi). Onyx is building features that will provide scalability and interoperability to financial applications and will meet the growing needs of the blockchain world.
The platform is also expecting new developments in the future which will help in driving innovations for strengthening community participation, hence increasing the adoption of Onyx Protocol.
Conclusion
The onyx Protocol’s Layer 3 scaling solution solves challenges related to scalability and efficiency which makes it one of the most attractive blockchains for finance-based decentralized applications.
Onyxcoin’s (XCN) advanced tokenomics data includes detailed insights on supply, allocation, emissions, and release schedules.
