In this week’s feature where we cover the best performing token of the last few days, we will talk about Minexcoin, a project that aims to build a solid network suitable for payments based on a stable, low-volatility token that allows for asset trading between different blockchains without contacting third parties. We will discuss about how they plan to do so and the possible reasons of the rise of their token last week, so let’s take a deeper look.
Stable Token, Strong Foundation
To solve the big issues that prevent blockchain from taking the final step into complete adoption in the payments sphere, the Ukraine-based team led by economist Boris Shulyaev developed a token that guarantees its stability through an algorithm of internal feedback that automatically prints and distributes new tokens among the owners when the price goes to high.
This model is supported by a worldwide network of miners, which allows for incredibly fast transaction times (0.436 seconds, allegedly) and very low transaction fees, which are important aspects to consider when designing a blockchain that must withstand a workload as high as payments.
Further Improvements
With a secure token as the base, many other products can be developed to fulfill the needs of the userbase, and the main two technological improvements created by Minexcoin are the Atomic Swap, a protocol that allows for quick asset exchange between different blockchains, and MinexBank, a platform where token holders are allowed to interact in the decision making algorithm for balancing the MNX price.
Back in February 2018, internal tests for the Atomic Swap were announced. It was revealed to be a way to exchange of one cryptocurrency to another without the need to trust a third-party, by being able to connect different blockchains via hash time-locked contracts. They defined this as “a class of payments when recipient has only a certain amount of time to accept the payment. Otherwise, the money is returned to the sender.” If the receiver accepts the payment, they must generate cryptographic proof of payment, or they must forfeit their ability to receive the payment.
In March 2018, the public test was open, with a simple GUI released on GitHub in early April 2018, and it has been tested constantly ever since using two blockchains in Testnet mode (MNX and BTC), which doesn’t alter the real state of the Mainnets. This GUI allows for two users to test trading between them and generate data about transaction times and workload handling using the protocol.
Whether this project will achieve the full integration of blockchain technologies into the payments landscape on the back of its fast transaction times, low-volatility token and intercommunication mechanics will only be determined by time, but it’s certainly an interesting project to follow closely.