Bitcoin Air - Project Review

adekogbe (53)in #blockchain • 6 years ago (edited)

Bitcoin Air - Project Review

Cryptocurrencies since the invention of Bitcoin has been tipped to be capable of revolutionizing the world financial industry. This is due to its decentralized nature. Meaning, monetary value can be earned, stored and exchanged anonymously between two or more parties and without any government interference.

Over the years since the invention of the first cryptocurrency (Bitcoin), the Blockchain market has grown at a rapid rate, with thousands of companies developing decentralized solutions to real-life problems.

One of the major challenges that have presented itself as a big drawback towards the mass/worldwide adoption of cryptocurrencies is its highly volatile nature.

Cryptocurrencies by nature are very volatile in terms of their value and prices. This characteristic has caused cryptocurrencies to be seen as a form of investment instead of it to be used as an alternative to physical cash.

While a lot of individuals are investing in cryptocurrencies due to its tendencies of making a profit over time, very few businesses are open to accepting payments for services in cryptocurrencies like Bitcoin. Bitcoin, for example, has dropped in price by approximately 76.5% at the moment of writing this article, as compared to its all-time high from earlier this year.

The sole aim of an average business owner is to make profits and the average guy equally doesn't want his money to depreciate in value. So in order for cryptocurrencies to really live up to the hype of being the future of world finance, it has to evolve in a way that will preserve the core values of decentralization and also protect the monetary value of the cryptocurrencies held by users or businesses.

Bitcoin Air

Bitcoin Air is a cryptocurrency that has been created to combat the challenges that both the present and potential cryptocurrency users are presented within the adoption of cryptocurrencies. Bitcoin air uses a revolutionary side chain concept to put the volatility of cryptocurrencies in check and thus allow users and business owners to be able of pegging their token value against the dollar at any point in time they so choose.

Major Innovations

Air Protocol
Side Chains (bilaterally operating side chains)

These new innovative concepts work hand in hand on the bitcoin air platform to create for users an ultimate cryptocurrency that has a protected value against depreciation caused by the crypto market volatility.

How It Works

Side Chains (bilaterally operating side chains)

The bitcoin air platform uses these two unique technologies together. Since the problem bitcoin Air is trying to tackle is volatility. The project has adopted a system in which two blockchains will be running simultaneously together.

The first blockchain being one that the bitcoin air's XAP coin will be running on, this XAP coins can be transferred between people, used to make and receive payments for goods and services, and stored in wallets. More importantly, these coins are also subject to volatility and could increase or decrease in value at any given time.

The second blockchain (side chain) is the one which will be used to lock the USD value of the XAP coins in a fully decentralized manner. The XAP coins on the first blockchain can then be swapped for USDAP (USD Air Protocol) through a process called "off chaining". This is where the Air protocol comes in.

Air Protocol

This is the technology that allows the holders of Bitcoin Air to off chain the value of their coins which then locks the USD value of their coins. This initiates an immediate burn of the XAP tokens and a mint of the corresponding value in USDAP on the side chain. The Air Protocol is allowed both the "off chaining" and "on chaining" of XAP coins to and from USDAP respectively.

Source: Short Paper

Conclusion

Bitcoin Air is a practical platform that has the required concept and also the technology to provide the usability that cryptocurrencies have been lacking. Unlike the USDT which is not a fully decentralized USD backed cryptocurrency, Bitcoin Air ushers in a new era of cryptocurrencies which are fully decentralized and the minting process is automated.

This project opens new doors for individuals and businesses alike which has a reciprocating positive effect on the world at large.