Metaverse is a decentralized open-source 3D virtual world, where people can buy and trade various assets. It’s powered by the X Protocol token that lets users make or accept payments. Experts say this project has an edge over traditional games because it allows anyone to create their own game with its unique asset trading platform without having to rely on others for funding
The world of virtual reality is getting more complicated by the minute, but X Protocol wants to make it simpler. Their upcoming platform will let users bet on predictions about everything from what they want for dinner to whether or not their significant other would be happy if they were replaced with a robot.
Whether you like it or not, the metaverse is the future of gaming and networked technology. When Facebook renamed the firm “Meta” and pledged $10 billion to construct the virtual social sharing platform, we saw them embracing this notion. If the world’s seventh-largest corporation is willing to make such a significant shift, the metaverse is unavoidable. Users will be able to reclaim control of their data as Web3 develops excellent apps that are interoperable, scalable, and long-lasting.
Non-fungible tokens, or NFTs, are a kind of ownership that will be present in every metaverse. Playing a game or swapping their digital stuff for a higher price might generate money for all avatars in a metaverse. Play-to-earn is the term for this approach. Many ventures, such as Axie Infinity, have used this strategy to attract millions of people in order to profit from a basic PVP game. While the emergence of NFT-based blockchain metaverse initiatives is undeniably amazing, there are still certain hurdles to overcome.
Speed, scalability, and interoperability are just a few of the challenges to overcome, since they prevent new users from seamlessly integrating into the virtual environment. For the metaverse to survive, it is also necessary to build an open application of ecology. To make changes on-chain, the community will require a strong governance and voting mechanism as it grows in the metaverse.
With the support of cross-chain solutions supplied by Polkadot, X Protocol is constructing the first-ever Metaverse + Application site to address these flaws in the present metaverse concept. Not only that, but X Protocol is working on a variety of decentralized apps in order to create a substantial value network for the ultimate metaverse. In this post, we’ll give you an overview of the X Protocol and explain what it’s attempting to do and how it does it.
In its X-metaverse, the X Protocol based on Polkadot’s infrastructure stresses three critical elements: speed, interoperability, and scalability. The protocol achieves high throughput, scalability, and, most significantly, a superior end-user experience by using a multi-chain topology.
If a high level of performance is to be sustained, it must also be superior in terms of cross-chain communication. As a result, X-Protocol makes use of each blockchain in the network to provide safe communication routes. It is also developing commercial applications to generate a robust digital economy inside the metaverse, in addition to the multichain deployment of X-Protocol.
Under the Hood of Technology
The fundamental technology of the X Protocol is a mix of many cross-chain bridge and relayer systems. The X Protocol’s rapid bridging solution is accomplished using a relay chain that provides excellent performance and speed. As a consequence, consumers are no longer concerned about cross-chain compatibility. Furthermore, the cross-chain bridge may improve Polkadot Defi’s liquidity by allowing users to deploy their assets at a 1:1 ratio from other chains.
Because the X Protocol allows for cross-chain interaction, it must provide authentication on several chains while keeping costs low. This is accomplished via the use of cross-chain relay technology. By establishing a light client authentication, Relay allows one chain to transmit information to others. The lite client for the X Protocol employs the Merkle Mountain Range (MMR) encryption technique.
Unlike other algorithms, MMR enables a protocol to run with great stability while also saving money and space. It minimizes network load and improves efficiency in terms of verification.
The Optimistic Whistleblower System (OWS) and the miner incentive model also contribute to the X Protocol’s functioning. The MMR is in charge of verification, whereas the OWS is in charge of relayers. It keeps track of their actions and punishes them if they commit a crime. When data is verified to be correct, the X Protocol rewards relayers equitably.
Because the importance of NFTs in a metaverse is recognized by X Protocol, the team opted to employ a heterogeneous chain bridge to establish the groundwork for NFT development. Because the NFT cross-chain permits minor transactions like NFT transfers, this will make the X metaverse more user-friendly.
X Protocol’s Features
We’ve discovered that X Protocol has one of the best architectures for growing a metaverse up to this point, but it doesn’t stop there. Fixed Product Automated Market Maker, a decentralized prediction market, is also being developed on the cross-chain platform (FPMM). Because of its interoperable nature, X Protocol has found it simple to collaborate with other great public chains, lowering entry barriers for all users.
The prediction market will not be subject to continual price changes since the protocol helps liquidity expansion for other networks. The following diagram depicts the operations and administration of an X Protocol-run prediction market:
X Protocol provides the greatest tools for creating a decentralized prediction market that enables users to freely construct events and assists them in doing so on various blockchain networks. With the X Protocol, asset management becomes more flexible. When the Polkadot cross-chain agreement is approved, the platform will see a significant increase in user activity.
The prediction market will allow consumers to wager on the economic, aesthetic, and irreplaceable worth concealed in digital art as NFTs become more prevalent. If users stake a particular amount of POT, the native token, X Protocol enables them to submit prediction proposals. The owner of the NFT earns 10% of the transaction charge if the governance agrees. Aside from the risk-free cash flows delivered by holding an NFT, the secondary market offers significant price increase potential.
The fee-sharing approach is appealing to many users, and they may also auction off their ownership, thus this feature incorporating NFTs will bring enormous value to the metaverse. Greater significantly, it aids in attracting more attention to the X metaverse and the development of a devoted community. X Protocol also intends to provide customers with collateral lending, NFT trading, and fractionalization in the future.
Analysis of Competitors
The Sandbox and Decentraland are two projects that already have a huge user base and a working metaverse. However, at least on paper, the capability of X Protocol seems to be significantly greater. The platform will also include an NFT marketplace, yield farming, and an acceptance center in addition to the prediction market (bank).
POT, the native token utility, is designed to promote the digital ecosystem by motivating users and assisting in the fundraising of new projects. In the future, it will be critical for a metaverse to have a variety of applications that compliment one another and place more focus on the metaverse. And we think that X Protocol has what it takes to do this and be at the forefront of metaverses.
Token Economics is a kind of economics that uses token
POT, X Protocol’s utility and governance token, is utilized for a variety of uses in the metaverse and other applications. A total of 21 million tokens are available. And 15% of it will go toward marketing and listing on exchanges. A fixed 20% of the supply is set aside for Uniswap’s liquidity pool, which has a three-year unlock period. Another large portion of the supply (35%) is set aside for network incentives for mining. In the seed and private rounds, the team also utilized 20% of the supply to collect funds.
The inaugural funding round aided the protocol’s value of $6.3 million, with investors paying $0.3 per token on average. The team raised $1.68 million in the private A round by selling $POT at $0.8.
DFG Investment Advisers, Lancer, IBC Capital, Candaq, Spark, Kernel Ventures, Redline DAO, Mint Ventures, R8 Capital, Ceras Ventures, Infinity Labs, LD Capital, and Crypto Discover were among the investors that participated in the private rounds.
The X Protocol team has made strides in a variety of metaverse development areas. The infrastructure is in place, and the decentralized apps have been constructed. The interface is the only thing they have left to accomplish. It’s still in the works, but we should have it shortly. The NFT marketplace, DAO governance, and staking node were all released in September. In addition, a prediction rating list was made public. We’ll see social forum integration and a group chat system with fresh new UI and UX in the next stage of development.
In recent months, the platform has formed a number of agreements to aid in its expansion. They teamed up with Supra Oracles to get precise real-time data for the prediction market. In exchange, Supra will be able to use the X Protocol’s cross-chain capabilities. Standard Protocol is another recent collaboration. The MTR stablecoins will be used to grow the platform’s dAPP ecosystem.
On November 5th, X protocol will start a public token sale of $POT on three launchpads: DAO Starter, Duck Dao, and FrankYield.
With the NFT trading square, staking node, and prediction mining, the X Protocol reached important milestones in 2021. The future of X Protocol will be determined by its roadmap. The product prototype, the debut of the gaming section, and the metaverse demo are all critical phases that the team is focusing on. This year’s highlights will include the NFT segment, X Predict’s UI adaption, and multichain deployment.
We should expect to see more community development in the second half of next year, including content production incentive schemes and fundraisers. With the KOL token supporting community development, a new social contact area will be created as well.
The importance of NFTs and the metaverse in the Web 3 transition is obvious. And everyone in the cryptocurrency and conventional finance worlds is ecstatic. As a result, as things get more popular, a single metaverse will be insufficient to fulfill market demand. Users are clamoring for more and will continue to do so. The most important thing is to make metaverses more dependable and interoperable while keeping entrance barriers to a minimum. A metaverse initiative like X Protocol has all of the ingredients for success. Over time, the Polkadot’s infrastructure will improve, making X Protocol more accessible to everyone. If the metaverse is deployed on schedule and includes a large number of decentralized apps, X Protocol should do well in the virtual worlds competition.
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Karthikeya Gutta, a crypto writer and freelance contributor for ItsBlockchain, was born and raised in India. With in-depth analysis and research, he covers many facets of the sector. His enthusiasm for blockchain and the crypto ecosystem stems from his belief that it has the potential to transform the world and benefit millions of people.