How ChainX Breaks the Limitation of Bitcoin
The vision of Bitcoin
Bitcoin as a peer-to-peer cash, after 13 years ,due to its anti-inflation, decentralization, globalization, anonymity ,determines its irreplaceability and the inevitability of being a global payable cryptocurrency in the future.
At present, the Bitcoin network can only support 10 transactions per second, and cannot afford large-scale payment scenarios. The marketing of Bitcoin-based layer-2 solutions have a huge potential. We can compare BTC to M0. The market value of M1 ,derived from M0, will be 10 times that of M0. BTC has surpassed Facebook’s market value recently. In our handful of time, BTC can catch up with the market value of gold and become the M0 of global universal asset. M1 market ,derived from M0 ,is just getting started. This market value gonna be huge.This is what ChainX is working on as the layer2 of Bitcoin.
Current Solution of Bitcoin Scalability
At present, El Salvador officially announced Bitcoin as the national legal currency in parallel with the U.S. dollar, which drives its payment demand sharply; twitter supports the Bitcoin tip function. The leading techonology of the solutions in the market is from Blockstream. Firstly，they have a Lightning Network ，whoes payment channel could support micropayments under the chain. the Tips function of Twitter adopted its technology; secondly, they got Luquid, which cross-chains Bitcoin to its Layer 2 network to improve speed and scalability. The Ethereum network also has a number of cross-chain solutions to bring Bitcoin to its network , but there has been no explosive growth so far.
How does ChainX Break the Limitation
Firstly，Make sure the safety of BTC cross chain
ChainX provides the most secure and decentralized bitcoin cross chain technology, basically in two directions.
As a payment system, security is the primary condition. However, the existing decentralization scheme can not completely reassure users. This becomes the first step in hindering payment. The primary task of ChainX is to realize the decentralized security costody of bitcoin.
At present, the ChainX network light node + multi signature scheme has been running safely for more than two years. With the upgrade of Bitcoin taproot in November, ChainX will complete the decentralized, multi-party secure BTC cross chain scheme with schorr signature and mast contract of taproot.
Another directions we are working on is， firstly， integrating lightning network into ChainX’s smart contract platform and secondly，integrating with bitcoin to enable smart contracts on BTC .The smart contract supports sending and receiving bitcoin without bridging and cross chain.
Light clients are crucial elements in blockchain ecosystems. They help users access and interact with a blockchain in a secure and decentralized manner without having to sync the full blockchain
ChainX had successfully integrated Bitcoin’s light-client in a pure Web Assembly virtual machine environment. Everyone can submit a Bitcoin header, then ChainX will verify it by its PoW difficulty. Eventually, ChainX will reach conclusion of the longest chain of Bitcoin in a decentralized way. Therefore, all transactions included in Bitcoin can be verified by its Merkel proof in ChainX. This bridge is accepting BTC deposits, waiting for 4 blocks of confirmation, and issuing X-BTC as shadow asset at 1:1 ratio.
ChainX compiles a pallet with the substrate, and realizes the shnorr signature + mast contract function.
Schnorr signatures allow multiple signers to combine their keys together to a form multi-signature key which creates an address. This multi-signature key is then used on the blockchain but is indistinguishable from others from a single key，making all transactions look the same, boosting privacy.
Mast contract realizes n/m of the schnorr signature. which realizes the threshold signature. n/m multi-signature is only needed to complete , and personal privacy is guaranted at the same time
Game theory of small collateral
Using tokens available on the existing network as the base currency collateral, combined with reasonable and useful game theory of small collateral among multi people，which allows 1 BTC equivalent collateral for greater than 10,000 BTC costody
Secondly, Build an Extensible DAPP Platform for BTC and Expand M1 Ecosysterm
After solving the security problem of BTC crossing , the next to be solved is how to play with BTC. All applications on Ethereum can be deployed on the bitcoin layer 2 network, such as game-Fidefi, NTF-Fi, etc
Thirdly, Comingchat as an Ecosysterm Entrance
Comingchat, as a blockchain social medium, has been online for half a year. At present, the amount of users breaks 1 million, which makes it an irreplaceable traffic center. XBTC on ChainX was supported.
Currently, we are migrating the EVM smart contract platform, so that the XBTC based DAPP can use the platform through Ethereum compatible solidness contract, and Ethereum peripheral tools such as metamask.
Comingchat will become the entrance to this smart contract platform.
ChainX will become the largest Bitcoin Layer 2 Network in the world. The first Substrate blockchain to go live will provide Polkadot with the most valuable digital assets on the market. Committed to realizing trustless and decentralized bridges for Bitcoin and other assets, it forms an inter-blockchain asset gateway, pathing the way for a truly interoperable network of blockchains.