Ask Me Anything: ChainX Product Team on how SherpaX will prepare for the upcoming Kusama Slot Auctions- for better and for worse.
With the Kusama Slot Auctions being a hot topic in our community, we decided to organise an AMA with Gigi from the ChainX Products team last Saturday. She shared some insights on how SherpaX will prepare for the auctions and what significance it has to ChainX.
Read the summary of the event below.
#1. Can you briefly introduce to us what SherpaX is?
SherpaX is the canary network of ChainX, experimental and independent. It will be connected to Kusama as a parachain by participating in the slot auctions. SherpaX and ChainX are highly similar in design, and some new technological innovations will be tested and experimented with on SherpaX first before implemented on ChainX.
#2. What is the connection between SherpaX and this joint debugging test network?
After several months of hard work, the three development teams of ChainX have made significant progress in three different development areas. We plan to deploy a BTC-based cross-chain bridge, ETH-based cross-chain bridge, and AMM-mode dex to SherpaX before the Kusama slot auction. After SherpaX is connected to the parachain, it can be officially launched.
#3. Can you briefly describe what the testnet will be about?
The testnet will contain three different parts that we need to test with the community:
1. BTC cross-chain gateway
2. ETH cross-chain gateway
3. Upgraded ChainX DEX
#4. What exactly do you mean by ‘2+1 testnet’?
2 stands for ETH cross-chain gateway, including ETH, BNB, USDT-erc20, and PlatON; BTC cross-chain gateway, including BTC, DOGE, BCH; KSM/DOT/PCX is the token of the DOT ecosystem.
1 represents the upgraded version of ChainX matching exchange (like Uniswap DEX).
#5. Why are you so excited about this testnet?
This testnet is like the final rehearsal before the grand opening of the multi-currency cross-chain platform. We’re combining BTC, ETH, BNB, USDT, DOT, KSM, DOGE, BCH, LAT, PCX, all in one place. This is our final stage before we’re breaking the ecological barriers between Ethereum, Bitcoin and Polkadot! This opens the door to 80% of the market cap of all cryptocurrencies.
The launch of the Polkadot XCMP protocol is imminent. ChainX’s launch of this super bridge will make all of these cryptocurrencies available in one network, providing their liquidity to the DOT ecosystem with a single press of a button, making them interoperable. In addition, it even contains the highly potential Platon ecology.
#6. You mentioned three development teams before, can you briefly introduce these teams to us and what exactly they do within PolkaX?
Sure! The BTC cross-chain development team has built XBTC2.0. Because Dogecoin and BCH are both forks of Bitcoin, they essentially work the same, meaning the design of XBTC 2.0 can be used for all three blockchains. Essentially, the cross-chain development team has realized a BTC/DOGE/BCH Light Node-based cross-chain.
The ETH cross-chain development team has completed their work on the ETH bridge. They largely based this on their previous research and development of the Platdot and Bscdot projects. All of these combined resulted in them creating an ETH/USDT-ERC20/LAT/BNB cross-chain.
The DEX team launched an on-chain matching DEX when ChainX went online. At present, due to the exhaustion of liquidity, we have realized the benefits of Uniswap AMM’s liquidity. So, the DEX team has overhauled the ChainX DEX to implement an AMM model just like Uniswap.
#7. So, is being a cross-chain project kind of like being an exchange?
You could say that, but I think it’s a very narrow definition of cross-chain. It’s much more than that. In short, two major functions define cross-chain:
1. To break through the performance and functional bottlenecks of the underlying blockchain technology. With the rapid development of blockchain networks, performance has gradually become a major bottleneck for the flourishing of these projects. By transferring part of the transaction processing to a side chain or off-chain, the performance of the entire network can be improved. Part of the functional innovations can be achieved through the side chain to ensure the security of the main chain.
2. To realize interoperability. A single blockchain system is relatively closed. With the rapid development of blockchain technology, the issue of “interoperability” between chains has gradually become prominent. You could think of specific situations like cross-chain payment and settlement, decentralized exchanges, and cross-chain information interaction.
#8. Can you give us an estimation of when you think the Kusama Slot Auctions will be?
There’s been no official announcement of when it will be, but we can make a good estimation based on the following facts:
- Parachain functionality is currently being tested on the Rococo testnet.
- Polkadot has released a new version of Polkadot v0.9.0, which contains client changes that allow parachains to run correctly.
- Slot bidding will have to wait for the two common good parachains first.
- Slot auction will start soon after the Parachain function is launched.
If all goes well, I think it could be around June this year.
#9. Now for a more general question, with crypto prices skyrocketing all over the place, what is your take on value discovery and value creation?
Value discovery and value creation are people-oriented. Especially in the field of blockchain, the greatest ability of excellent investors is the ability to discover value and create value. I think that there are four main drivers behind these things:
First-hand research to capture the development trend of the industry in advance before the general public catches on.
To challenge the mainstream perception of cryptocurrencies.
Adhering to a long-term perspective and invest in a team with a long-term perspective.
And choosing to do meaningful things that create value.
#10. Do you think 2021 will be the last bull market?
No, I don’t think so. Technically speaking, as long as the BTC encryption algorithm is not jeopardized, the market consensus will remain. The financial attributes of BTC will always exist, and the speculation game will continue. The existence of this speculation partially means there will be a bull-bear alternation. So in my eyes, there’s no reason for this one to be the last.
Beyond simple market movements, the concept of digital currency has become more and more popular, more and more individual investors and institutions have begun to accept the value of digital currencies. Holding digital currencies will become a trend in the future. With the further release of the application value of blockchain, the financial status of digital currency will be further consolidated.
Besides, looking at just investor numbers, the amount of investors entering the market will continue to increase, the bubble in the currency market will become bigger and bigger, and the market value of the currency circle will continue to rise.
#11. Now for a few questions about the 2+1 Ambassador program, what exactly is this?
The 2+1 testnet will link Bitcoin, Ethereum, Polkadot and other ecosystems. To better achieve interconnection, we are recruiting SherpaX ambassadors from the community to assume the role of a cross-chain ecological expert to guide the community and promote adoption.
#12. So, who exactly are you looking for then?
The first batch of community ambassadors covers the 10 head projects, around cross-chain gateways supporting EVM (including ETH, BNB, USDT-erc20, DOT, KSM, PCX, LAT) and BTC-based cross-chain gateways (including BTC, DOGE, BCH). Adding to these will be two ambassadors responsible for AMM related work.
#13. What would my tasks as an ambassador be?
Community ambassadors need to complete certain ambassador tasks to help the community grow and develop, and submit work reports regularly. To give you a more in-depth answer:
1. Assist the development team to complete the testing of the corresponding currency;
2. Answer the common questions of the community and guide the community members to use the functions of the platform correctly;
3. Collect community opinions and feedback, and pass this on to the development team promptly;
4. Write and produce promotional materials, forward official news, etc.;
5. Organize community activities as needed, both online and offline.
#14. What’s in it for me? What benefits can I get when I become an Ambassador?
According to completion of the tasks and performance as an ambassador, the following will be made available to you:
1. Allowance: according to different situations and performance, token incentives will be granted;
2. Peripheral: additional prizes or opportunities that are regularly launched;
3. Privileges: Priority participation in official activities, direct contact with development and board members, and quick access to important information;
4. Resources: Accumulate high-quality resources and enrich work history.
#15. Can you share some info about what spider is?
Spider is a cross-chain project sponsored by China goverment, aimings to connecting all the Chains even with differenct consensus.
This project will last for 3 year before lauching and before that, it will be applied in Coming in the near furthure.
#16. Does the team intend to develop bridges to other projects into the future, beyond what has already been announced?
I am not sure how much do you know about the bridges we will develop.
At the end of May the SherpaX will have bridges of BTC, KSM, DOT, BNB, Doge, ETH, BCH, LAT.
And we will lauch the inter-chain asset mirroring.Users deposit and collateralize bitcoins for X-BTC which is used in transactions with synthetic assets of other cryptocurrencies, so that all sorts of cryptos can be exchanged and traded on the same chain.
#17. When ChainX becomes the secondary Polkadot relay chain, will there be parachain auctions? If so, will they have to use PCX to bond to the relay chain?
No, there will not be auctions when ChainX envolve into Polkadot relay chain.
ChainX wanna chains out side of polkadot ecosysterm could enjoy the X-claim cross-chain protocol at low cost.
#18. Will SherpaX become a secondary relay chain of Kusama?
No, SherpaX will serve as the kusama parachain.
#19. Is there any mechanism in place that every X-BTC that gets minted is collateralized by a defined (minimum) amount of KSX/PCX? Or in what way do they correlate?
Yes, every x-BTC that gets minted is collateralized by at least 3 times of PCX.
X-BTC 2.0 is a trustless and highly efficient inter-chain asset system based on the XCLAIM framework through which two protocols are introduced to enable distributive, transparent, consistent, and anticensorship cross-region blockchain transactions.
Here is how it works
#20. Since PCX has a main competitor in REN, what makes PCX better? What is the innovative and competitive advantage for ChainX?
ChainX committed to be the biggest layer-2 of biction. Since they got quite a decent amount of R-BTC, we consider it as our competitor in some degree. we will be better than them for the following reasons .
Firstly we can make bitcoin more safe.
The Bitcoin network cannot integrate light nodes of other chains to form smart contracts, which means assets are trapped in their own systems. ChainX came up with a scheme to break the dilemma with the “light node + trusteeship” scheme that allows chain crossing. So far Bitcoin light-node bridge and X-BTC1.0 trusteeship scheme have been finished, enabling completely decentralized mapping of Bitcoin onto ChainX.
In addition, the latest logic framework of X-BTC trusteeship has been established and will be launched in the foreseeable future. they are :
-1- X-BTC 2.0, the test net has been launched
It is a trustless and highly efficient inter-chain asset system based on the XCLAIM framework through which two protocols are introduced to enable distributive, transparent, consistent, and anti censorship cross-region blockchain transactions。
-2- X-BTC 3.0, on plan
It manages to cross assets onto other chains with MPC in a network composed of Trader nodes which contribute computing power to sustain the system. There are two main branches in MPC (Multiparty Computation): “secure multi-party computation based on garbled circuits” and “secure multi-party computation based on secret sharing”, and X-BTC 3.0 uses the latter which is based on Shamir’s Secret Sharing to encrypt and send out data.
-3- X-BTC 4.0, on plan
It modifies the MPC algorithm and resets the threshold to enable users to hold the private key pieces themselves, what’s more the pieces they hold have the veto right, which means a user’s assets cannot be moved without his or her involvement in decryption, thereby guarantees BTC asset security in the trust and greatly reduces the amount of collateral needed to a level even lower than the amount of inter-chain assets. This is the most ideal solution.
Secondly: X-BTC will import not only to Polkadot ecosysterm, but also to the great ecosystems like, Etherium, Near, PlatON etc.
Thirdly: ChainX focus on the expansion of Bitcoin layer-2 financial platform，will inrich its finacial derivative and improve the hedgeing tools. while Ren BTC only brings btc to an ecosysterm.
ChainX, the earliest launched project in Polkadot’s ecosystem, is committed to the research and application of Bitcoin layer 2 expansion, digital asset gateway and Polkadot second-layer relay chain, to realize cross-chain asset exchange, leading the new direction of Bitcoin Cross-DeFi.
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