DeFi
Bybit Learn
Bybit Learn
Intermediate
23 de sep de 2022

Function X (FX): A DeFi Ecosystem With High Speed & Low Fees

Back in 2019, Pundi X Labs created Function X, which is a powerful cross-chain architecture that allows multiple chains to be integrated for the formation of the Function X blockchain. With this system, different blockchain ecosystems can be properly integrated, including everything from Solana to Ethereum

While there are many crypto projects you can invest in, Function X offers tangible decentralized finance and blockchain technology for your benefit. The following guide provides you with a comprehensive overview of this platform and its many advantages.

What Is Function X?

Function X is a type of multi-layered decentralized finance (DeFi) ecosystem. This protocol combines a programmable internet service framework with a highly flexible cross-chain bridge.

Function X isn't meant to provide a feature set that's similar to what can be found with other blockchain platforms, such as Bitcoin and Ethereum. Instead, this blockchain platform aims to provide users and developers with asset aggregation contracts that can link directly to Ethereum smart contracts, while also providing yield gain via one or more blockchains.

Note that this ecosystem is Ethereum-based, which is why the f(x)Core is able to facilitate an environment that simultaneously features low fees and higher speeds. This particular platform is supported by a nonprofit organization known as the Function X Foundation. It aims to grow the Function X ecosystem by combining the many benefits that come with blockchain and internet infrastructures, resulting in a world beyond financial transactions and data transmission.

History of Function X

Function X was developed by Pundi X Labs toward the beginning of 2019. Its ecosystem was created to function as a bridge between modern DeFi features and more traditional finance services. The platform's cross-chain architecture is based on a proof of stake (PoS) consensus, as well as the practical Byzantine fault tolerance (pBFT). It aspires to bring crypto to the masses by allowing efficient ecosystems to be deployed by developers.

What Does Function X Intend to Achieve?

Function X supports cross chains internally and externally. An example of a chain that's supported externally is Ethereum. By using various decentralized validators, it's safe and easy to move assets between different chains and the f(x)Core. Because of how this ecosystem is structured, users and developers benefit from high transaction speeds, a simple system for trading digital assets, and low transaction fees.

Lowering Investor Confusion

Function X was designed to reduce or eliminate a large number of problems altogether. For instance, this protocol assists in lowering investor confusion: In many cases, new DeFi users find the protocols confusing and difficult to use because of all the new options and terms. Mainstream users who aren't familiar with decentralized finance may decide to stick with traditional finance methods instead, which is an issue that Function X is aiming to resolve.

Solving Scalability Issues

A major concern with DeFi involves scalability issues. The largest DeFi network in the world is Ethereum. Whenever its platform experiences network congestion, transaction delays take place almost immediately. Ethereum users then must pay higher gas fees, making it increasingly difficult for new users to complete the onboarding process.

Function X uses a distinct structure to avoid scalability problems. Its multi-chain framework facilitates high performance and throughput. You'll also benefit from low transaction costs, since gas fees remain reasonable when compared to those on Ethereum. It's also possible to transfer FX, the governance token of the Function X ecosystem, at a much lower cost than ETH.

Bypassing Inflationary Concerns

Another concern that Function X largely remedies involves inflation. Many currencies around the world are experiencing extremely high inflation levels. This reduces investors’ access to their crypto holdings. Function X bypasses inflationary concerns because of the limited token supply to which this protocol has access.

The staking features available via the Function X network are designed to remove a certain number of tokens from circulation while the staking period is ongoing, thereby increasing demand for digital assets. The governance mechanism available with Function X provides users with the opportunity to vote for token burns and additional methods of reducing the amount of FX that are circulating.

How Does Function X Work?

The Function X blockchain is highly advanced in the crypto industry. Governance on its network began immediately after its mainnet was launched. Token holders can take part in the governance process by verifying the formation of blocks on the Function X network. By participating in block verification, users can obtain block rewards via delegation. (The entire network was initially secured by a group of 20 validators.)

Delegation occurs through the f(x)Wallet, which is a decentralized noncustodial wallet application only available with this blockchain technology. Along with supporting cross-chain and interchain transactions, the f(x)Wallet also accommodates numerous DeFi services that can benefit you when managing your digital assets.

When Function X first launched, it had already provided users with many promising features. For instance, FX coin holders could bridge ERC-20 FX coins directly to the f(x)Core with their f(x)Wallet. This means that all Function X digital assets can be used on Ethereum, as well as the f(x)Core.

Because of the cross-chain architecture on Function X, wrapping isn't required for these transferable digital assets. All cross-chain transfers are guaranteed to be simple and straightforward in a manner that mirrors the on-chain transfer process.

Features of Function X

At the moment, the Function X platform offers many features and benefits made possible by using DeFi, as opposed to traditional finance. This ecosystem is 100% decentralized and can be run autonomously, which means that no organization or individual needs to supervise it. The FX token is also decentralized in regard to circulation, allocation, distribution and control.

Proof of Stake Consensus

Function X is mainly centered on the PoS consensus mechanism, but it also utilizes aspects of proof of work (PoW). For example, the pBFT mechanism mentioned previously is a PoW mechanism that provides the network with high-end security. Meanwhile, Function X’s PoS system offers ample amounts of scalability as well as high-transaction throughput.

f(x)Core

f(x)Core is the name for the Cosmos SDK application on which the Function X platform is based. It’s the first core that the Function X network launched. Its purpose is to accommodate transfers between different blockchains. When a blockchain can connect to a core with inter-blockchain communication, it’s given access to every additional blockchain that's connected to the same core.

Cross-Chain Bridge

The cross-chain bridge is the primary bridge that connects the Function X blockchain to BNB (formerly Binance Smart Chain), Ethereum and many other blockchains. This type of bridge facilitates transfer of various digital assets, data or Ethereum smart contracts. Even if two chains have different rules, governance models and protocols, a cross-chain bridge allows the two disparate chains to be connected.

Multichain Structure

Function X is outfitted with a multi-chain framework that increases its network’s rate of TPS (transactions per second).

CryptoBnk

CryptoBnk is a DeFi service designed to mirror a standard savings account. The primary difference between CryptoBnk and a savings account is that there aren't any centralized bankers who need to be paid — which should result in you receiving a higher APY. It's also possible to stake your tokens with this feature.

In order to stake tokens, you'll need to provide a certain amount of liquidity to Ethereum smart contracts for a set amount of time. You'll then obtain rewards that are based on how much you’ve staked.

f(x)Wallet

Users can store FX tokens within their f(x)Wallet. This network-based wallet gives you access to numerous portfolio tracking details, which extend to your current holdings, past transactions and total token values.

EVM-Compatible Chain

In July, the Function X platform upgraded to a network introducing an EVM-compatible chain. This chain has the infrastructure needed to ensure that DApps can run smoothly, and that low transaction costs are properly maintained. Function X is among the first crypto projects to implement an EVM-compatible chain on a Cosmos network–centered blockchain.

The EVM-compatible chain is essential for Function X to become a DeFi platform that enhances the entire DeFi ecosystem — and pushes developers to move over to Function X. The inclusion of this blockchain technology also makes it easy for users to bridge numerous tokens from Ethereum to the EVM-compatible chain via the f(x)Bridge. The main tokens that are currently supported include PURSE, FX and USDT.

Benefits of Function X

There are many reasons why Function X has continued to rise in popularity since its 2019 launch. First of all, this network provides great support for the whole DeFi industry.

This particular protocol was also developed to ensure that new traders and crypto investors experience an easier onboarding process. Along with a simple-to-navigate interface, you'll also benefit from the availability of numerous passive income features.

Ethereum Integration

A top benefit of the FX platform is Ethereum integration. In fact, the team behind the Function X ecosystem made sure to focus on interoperability with Ethereum tools and protocols while development was ongoing. Asset aggregation contracts can instantly be connected to Ethereum smart contracts without first obtaining permission.

Interoperability

The FX network offers interoperability that beats the available alternatives. Its system uses a network of fully decentralized validators to ensure f(x)Wallet cross-chain transfers. Interoperability allows users to exchange digital assets from chain to chain. The main goal of this feature is to make sure that Function X is properly connected to BNB, Ethereum and any other DeFi network.

Function X Road Map

The Function X road map is separated into three distinct parts: Blockchain, payment and DeFi. Pundi X, the development team behind the Function X network, has already spent a large amount of time porting existing payment products to the Function X ecosystem. WalletConnect powers the ecosystem's wallets. XPOS allows Function X to perform transactions at a faster rate.

In the near future, Function X is also set to focus on blockchain, which is where most of the platform's development resources are being spent. Over the years, the developers at Function X have launched f(x)Core, f(x)Cloud, Function X Explorer and FX Connect to implement cross-chain relay nodes. As for DeFi, their next area of focus involves DEX and synthetic assets, which will be explored further toward the end of 2022.

FX Tokenomics

The FX token is currently priced around $0.23, and has a 24-hour trading volume of $774,852. At the moment, the market cap is approximately $125 million with a fully diluted market cap of $455 million. According to CoinGecko, the circulating supply of FX tokens is approximately 533 million, and the max supply is just over 1.893 billion.

FX Price Prediction

The following price prediction is based on analysis performed by CryptoNewsZ. This prediction is calculated primarily with predictive data modeling algorithms, as well as past prices. Keep in mind that precise forecasting about future prices is practically impossible, which is why this should be considered an estimate.

What you do with this information largely depends on the amount of risk you want to add to your portfolio. Basing your investment decisions on pricing predictions is always a risky prospect. Throughout the remainder of 2022, it's expected that Function X will reach a maximum price of $0.71 and a maximum value of $0.80.

In 2023, the maximum price is expected to be around $0.94, with an average trade price of $0.84, a decent increase over the current FX price. It's not until 2024 that FX is set to exceed $1, while the average price should still be below the $1 mark at around $0.89.

The price of the FX token isn't expected to increase by too much through 2025–2026. In 2025, the maximum price level could be at or near $1.26. DigitalCoinPrice supports CryptoNewsZ’s forecast that FX’s price will drop somewhat starting in 2026, estimating an average price somewhere between $0.86 and $1. Only time will tell if these estimates are accurate.

Is FX a Good Investment?

Function X uses the most advanced blockchain technology to provide users and investors with a feature-rich platform. The availability of an EVM-compatible chain, as well as compatibility with Ethereum smart contracts, means that FX should be a great investment for anyone who wants to place their money into DeFi platforms. The price estimates cited above indicate that FX should continue to increase in value until 2025, which means that it’s likely to be a strong long-term investment.

The popularity of DeFi products is increasing daily, so the potential for a platform such as Function X is high. By taking advantage of Ethereum’s structure while also maintaining low transaction costs and high transaction speed, Function X should remain a highly sought-after platform in the coming years. At the moment, the token is definitely worth buying.

The Future of Function X

The Function X ecosystem comes with all of the features and advanced blockchain technology that Ethereum developers enjoy. Because the network uses aspects of both PoS and PoW consensus mechanisms, users benefit from a combination of security and scalability; it’s considerably more affordable to craft new tokens and host DApps. As a result of this expanded feature set, the Function X ecosystem is likely to grow in the coming months.

Closing Thoughts

Function X is a unique DeFi ecosystem that focuses on delivering high speeds and low fees. If you've been thinking about investing in DeFi projects with your digital assets, the Function X ecosystem is a great place to start. As long as the team at Function X adheres to its future road map, use cases for Function X should expand even further in the coming months and years.