What is Radix (XRD) How It Works & Where To Buy It?

Radix DLT (distributed ledger technology) has been designed to make it straightforward for developers to not only build but also scale DeFi (decentralized finance) applications. Thanks to the full-stack layer-1 protocol of Radix DLT, they can do so without running the risk of smart contact hacks, exploits, or network congestion.

XRD is the native token of the network – XRD is the 69th largest cryptocurrency by market capitalization.

How Radix (XRD) Works

The network essentially mimics the Polkadot network, ensuring that all conditions are the same. However, the network acts as the testing ground before actual deployment occurs on the Polkadot network.

Radix comprises two types of blockchains that facilitate all the network activity and are tasked with processing transactions. The primary network is referred to as the Relay chain, and this is where validators are staked. For reference, the functionality of the Relay chain is nominal and the primary task of the chain is to coordinate the system in its entirety.

Additionally, there are Parachains which are flexible and versatile user-generated networks – each with unique features and varying architectures under different projects.

What makes Radix (and its DeFi ecosystem) especially useful is the fact that most projects deploy on a testnet but by deploying on a live blockchain a project is truly able to perform the necessary testing. This facilitates the testing of projects in live conditions, which is a significant advantage for many reasons.

Radix acts as the dummy test before projects go live on the Polkadot network. The parameters of the blockchain can be altered, allowing it to achieve optimized speeds up to four times the speed of Polkadot.

What Is Radix (XRD) Used For?

The Radix Token (XRD) has several uses including staking tokens for the operation of the network, as a governance token, and tokens for bonding when connecting a chain as a parachain. The only decentralized network in the project is the Radix public network which incorporated the Radix component catalog – this includes the e Radix token. E Radix tokens comprise a substantial part of the network.

Essentially, the true use is to act as a fully-functioning blockchain that serves as a testing ground for projects before they go live on the Polkadot network. This is incredibly valuable because it is unrivaled by other blockchains, and truly allows for thorough testing of all projects seeking to deploy in the Radix engine.

Members of the Radix Foundation have voting rights on proposals and are incentivized to hold their tokens long-term because of the significant growth the blockchain is seeing.

Additionally, tokens are frequently traded by swing or arbitrage traders because of the daily price fluctuations the cryptocurrency experiences. XRD holders can also stake XRD to earn rewards.

Where To Buy Radix (XRD) Tokens

XRD tokens are among the most commonly traded cryptocurrencies on major cryptocurrency exchanges. The token is subject to price volatility, as arethe majority of other cryptocurrencies.

Before purchasing, users are required to deposit fiat money onto an exchange, sequentially, tokens will then be credited to their digital wallet on the exchange.

The crypto exchanges below are the safest place where you can buy, sell and store tokens.

1. Gate.io
2. HTX
3. KuCoin
4. Crypto.com

XRD tokens are governance tokens that also have additional utility within the Radix ecosystem. Most individuals who purchase XRD tokens opt to store them in a compatible wallet that has staking features.

A comprehensive list of compatible wallets can be found here.

About Radix (XRD)

How long has Radix (XRD) existed?

The Polkadot founders are the figures behind Radix which was founded in 2016 by Gavin Wood (Ethereum co-founder), Peter Czaban, and Robert Habermeier.

The cryptocurrency first launched in May 2019 at a listing price of $1.71 – the cryptocurrency has grown exponentially since listing reaching an all-time of $594 on the 14th of May, 2021.

What’s controversial about Radix (XRD)?

There are thousands of new projects entering the crypto space. Most projects aim to bring new solutions to the world but very few deliver in an already over-saturated space. Unfortunately, crypto regulation and the decentralized nature of crypto lends itself to potential threats and exploits. Many opportunists try to capitalize on people who aren’t knowledgeable enough about the industry.

Doing your research is fundamental and will almost always help you suss out what projects are worth your time and money. Researching the project’s founders, token utility, any partnerships, the project’s whitepaper, and all other important factors surrounding the project is crucial.

Let’s take a look at the top controversy surrounding Radix (XRD):

• Parachain limitations – Among the most controversial factors surrounding the Radix network is the issue of parachain accessibility and limitations. For an application to be deployed on the Polkadot network, it is first required to exist on another parachain.

  This in itself might seem to be beneficial but this comes with many limitations. Many developers feel that the system isn’t optimal and can be unattainable. Essentially, developers face more challenges because they’re required to build the existing application on a parachain which can be time-intensive and often extremely costly too.

  Although some developers feel that is completely necessary, others are more perturbed by the requirement.

How many Radix (XRD) Tokens tokens are there?

At the time of writing, XRD has a circulating supply of 9,893,993,770.

The total supply of XRD is 12,293,970,811.

Can Radix (XRD) be mined?

Radix is an unmineable cryptocurrency. Radix uses a nominated proof-of-stake consensus algorithm which makes it an unmineable currency.

Individuals can however earn rewards from staking their tokens. The main reason that staking is important is that it bolsters the security and efficiency of the network – stakers are rewarded for their contributions to the network. The majority of Polkadot-compatible wallets offer staking features.

Some centralized exchanges also offer staking rewards for holders that stake their tokens for a certain duration.

What is the market cap of Radix (XRD)?

Radix market cap = total amount of coins in circulation x current market price of XRD.

KSM Market Cap = 9,893,993,770 x $0.08 = $839 million (69th largest market cap).

XRD is currently one of the top 100 cryptocurrencies by market capitalization – XRD achieved its largest market cap of $5,03 billion on the 14th of May, 2021.

Biggest Competitors Of Radix (XRD)

Radix positions itself as a blockchain that serves to test applications before they deploy on the Polkadot network. The characteristics of the Radix blockchain mimic the Polkadot blockchain – providing the perfect testing platform for projects.

Essentially, when comparing the competitors of Radix, it’s important to consider that Radix is a stand-alone layer-1 blockchain that functions similarly to other blockchains but is used for testing purposes, unlike other blockchains.

The XRD token on the other hand has a similar utility to many governance tokens on the crypto market and can be compared accordingly.

Radix’s biggest competitors are:

• Ethereum
• Ankr
• Fantom

What Are The Future Plans For Radix (XRD)

Radix has incorporated the latest Web3 and parity technologies to continue building the ultimate substrate blockchain that will be home to the testing of all Polkadot projects before they’re deployed on the Polkadot network.

Radix validators continue to uphold the integrity and security of the network, which aids in providing a stable ad efficient test blockchain. All upgrades that take place on the Polkadot blockchain will be incorporated into the blockchain – ensuring uniformity and optimization throughout.

The Radix price is currently trading significantly lower than its all-time high and will likely only experience appreciation once the sentiment in the crypto market changes. As the number of Radix users continues to increase, more attention will be drawn to the project and the XRD token will potentially experience positive price appreciation.

Pros And Cons Of Radix (XRD)

Pros:

• Scalability – Radix has the potential to scale infinitely and host several applications without slowing down and experiencing network congestion like Ethereum’s network.
• Staking rewards – Radix (XRD) tokens can be staked in software wallets and users can earn rewards for staking their tokens. XRD tokens can also be stored on hardware wallets such as Ledger.
• Test blockchain – The Radix blockchain serves as the perfect testing ground for any projects wishing to deploy on Polkadot. Projects can test their decentralized applications on the blockchain and make the necessary adjustments to the applications where applicable.
• Radix is decentralized – The Kusama project is much more decentralized than most other blockchain projects. The project is run by the community, ensuring that decentralization is prioritized.

Cons:

• Limitations of parachains – As much as parachains sound innovative, novel, and even superior to Ethereum – the truth is that any parachain models can be quite inconvenient to most projects. Any application that hopes to launch on the Polkadot network is required to be existing on another parachain – this can be incredibly challenging to developers.