What is XION and how is its chain abstraction designed to achieve mainstream adoption

What is XION?

XION is a Layer 1 blockchain without a Wallet, focusing on improving the Web3 user experience through chain abstraction, simplifying complexities such as Private Key and gas fees. By eliminating common Web3 friction points, XION accelerates the mainstream adoption of Web3, making blockchain technology more accessible to users and developers.

Key Points

• XION is the first user-centric Layer 1, aiming to provide infrastructure for Web3 developers to simplify blockchain operations, enabling them to build, launch, and scale user-friendly applications for non-encryption native users through complete abstraction.
• XION is walletless, abstracting across the entire technology stack, eliminating the entry barriers of technical knowledge of blockchain workings and concepts of gas fees, allowing new users to easily enjoy the advantages of Web3.
• In addition to improving the user experience of Web3 applications, XION is also aimed at enhancing interoperability, solving distribution and fragmentation issues, and achieving mainstream adoption.
• XION is built by the core contribution team Burnt, which is led by the notorious Burnt Banksy, who made history and global headlines by burning a Banksy artwork and selling it as a Non-fungible Token.
• XION is leveraging the chain abstraction technology of the network to build an ecosystem of decentralized applications and Blockchain networks.

Compared to traditional alternative solutions, the Block chain provides a more secure and flexible platform for building applications in almost any industry. The importance of this advantage lies in the rapid rise of the industry and the widespread adoption in mainstream fields. Although interest in Web3 solutions is increasing, interaction with the Block chain network still requires some technical understanding - from the seed phrase of the Wallet to the fuel cost of Token transfers. Faced with this complexity, users still tend to use Web2 solutions, despite their flaws.

If the Block chain is to be used by everyone, it should be as accessible as Web2 systems, while retaining its well-known characteristics of flexibility, immutability, security, and cost-effectiveness. This is exactly the idea of XION - to make Web3 accessible to all users. XION focuses on significantly improving the user experience (UX) by providing a platform and tools to expand the user base of Block chain technology.

Introduction to XION

XION is a Layer 1 blockchain without Wallet, aiming to simplify the complexity and steep learning curve of Web3 interactions through Chain Abstraction, thereby improving the user experience with Web3 protocol. Through Chain Abstraction, users will be able to enjoy the benefits of Web3 without directly interacting with the blockchain, including complex technologies such as Wallet Secret Key, transaction signatures, and gas fees. At the same time, it overcomes challenges such as fragmentation by extending the solution to the connected ecosystem, creating a highly interoperable L1.

XION's chain abstraction solution seamlessly integrates blockchain functionality at the protocol level, enabling new users to easily buy and interact with cryptocurrency without the need to go through the tedious process of creating a wallet and storing seed phrases, converting fiat currency to cryptocurrency, bridging funds, exchanging the correct cryptocurrency, and ensuring sufficient gas fees. By abstracting the complexity and technical details of the blockchain, XION enables users and businesses to easily interact with blockchain technology, making it as accessible as Web2 applications.

Since the launch of the public Testnet in 2024, XION Network has gained significant followings. According to the project's data, the network has recorded over 3.6 million users and has registered over 200 integrated, deployed, and partnership relations. XION has also raised over 36 million US dollars in multiple funding rounds, with investors including Multicoin, Animoca, Circle, Spartan, etc., to drive the development of its solutions.

The following is the relevant information about the XION founding team:

The team behind XION

XION was founded by Burnt Banksy. The name of the project's founder is derived from the event that brought him into the public eye. Burnt Banksy burned a Banksy artwork called 'Morons' and subsequently created a Non-fungible Token representation of the artwork, reportedly selling it for $380,000, which is more than four times the cost of the artwork itself.

Burnt Banksy demonstrates the concept of digital scarcity and the possibilities of utilizing blockchain technology. However, realizing the difficulties that ordinary blockchain users face due to the complexity of the technology and the poor user experience, he founded XION and began building a blockchain that makes digital ownership accessible to everyone through simple dApps.

How does XION work?

XION aims to improve user experience by eliminating all technical complexities for end users, to reduce known issues in using Web3 systems. It covers areas such as protocol-level account abstraction, fee processing, and cross-chain communication (interoperability).

As a general abstraction layer, XION has developed advanced chain abstraction technology to handle account management, fuel fee payment, interoperability, and accessibility.

Let's take a look at some key features of XION and how they achieve a better user experience:

Implementation Meta Accounts

XION draws on the Smart Contractaccount (SCAs) and account abstraction technology to overcome the limitations of traditional Wallet, allowing for multi-factor authentication, account recovery, and other custom authentication logic.

SCAs are typically designed to work with external owned accounts (EOAs) that use Public Key/Private Keyencryption. EOAs are Block chain user accounts, and users can sign transactions using the Private Key and then verify them using the Public Key. However, this method has some limitations, with the most significant risk being that users face the risk of losing or leaking their Private Key.

On the other hand, SCAs are used for automated trading, but they are not designed to manage Private Key, so they cannot initiate transactions. In a normal smart contract trading sequence, EOA initiates the transaction and SCA handles the rest of the operations.

XION's account utilizes SCAs and protocol-level changes aimed at improving the user experience. This allows users to interact with their on-chain account through methods such as email or biometric authentication, enabling them to maintain non-custodial control while simplifying access and providing account recovery options. By eliminating the need for users to manage their Private Key, XION also provides users with a device-independent access method, allowing them to access their account on multiple devices.

Gas and Pricing Abstraction with USDC

XION uses stablecoins at the network level to provide users with a familiar Fiat Currency value and pricing system. In order to improve the user experience, XION willUSDCAs the main trading currency, all fees can be represented by stablecoins. From the user's perspective, given XION's fee abstraction mechanism, they only need USDC to trade on XION. In addition, by using USDC as the main trading currency, this also makes the financial system more stable, reducing speculation and price volatility based on on-chain products.

Unlike other blockchain networks, XION's fuel payment is handled by the network, so users don't have to go through the hassle of acquiring fuel tokens for different chains. XION will automatically convert USDC into the required fuel tokens through its parameterized fee layer in the background, allowing users to use XION and various networks without having to purchase tokens to pay for fuel.

In addition to trading with USDC, applications on XION will also display prices in USDC to enhance accessibility for new users, as they can easily understand costs without the need to convert between multiple assets.

Payment Abstraction

XION's fuel abstraction eliminates a complex layer of obtaining the required local Tokens. The payment abstraction further simplifies the process as it removes the complexity of traditional purchases through a unique fee abstraction. Any supported Token can be used for payment, allowing users to easily engage in on-chain transactions without worrying about the technical details of fee payment. XION-powered applications also allow users to make payments using debit and credit cards, creating a convenient experience similar to the purchasing process of Web2 applications.

Abstract Interoperability

Blockchain networks usually operate independently, and users need multiple accounts to interact with different blockchains. With XION's abstract interoperability, users can perform operations on any connected on-chain through a central meta-account.

To promote interoperability with other Blockchain networks, XION features advanced Cross-Chain Interaction communication technology, capable of interacting with other Blockchains while maintaining a seamless user experience. The Cross-Chain Interaction on the XION network is achieved by combining the mainchain (XION primary account) with the target on-chain Smart Contract account. These Smart Contracts communicate through a trust-minimized communication protocol, and zero-knowledge state compression proofs are created on-chainlight client and passed to the target chain through Decentralization relays. This creates a smooth, protocol-level interface, enabling seamless Cross-Chain Interaction, allowing users to perform operations on any main on-chain through XION.

What is XION Token?

(https://www.coingecko.com/en/coins/xion) is the native Token used to support the XION ecosystem. XION utilizes Proof of Stake (Proof-of-Stake) for network security, and XION holders can stake their Tokens to support the security of the network. Like other Proof of Stake chains, XION holders can also propose and vote on network changes. The Token can also be used as a Medium of Exchange and as Collateral within the ecosystem.[XION]

As mentioned above, although XION allows users to pay Money Laundering in multiple currencies, these fees will be converted to XION. In order to manage Token Inflation and ensure long-term sustainability, XION will use accumulated fees to offset Inflation, and Inflation is only calculated on staked Tokens, rather than on all Tokens, further reducing Inflation.

XION Ecosystem

Through its technological advancements, XION is driving various dApp use cases on its Blockon-chain. By eliminating all user complexities associated with Block interaction, XION enables developers to build products suitable for ordinary users. With the shifting importance of the Application Layer, XION provides a unique solution for developers beyond the current encryption user base.

This can be seen from the huge rise of the XION ecosystem in a short period of time, with over 200 applications and integrations already in place. The ecosystem has attracted nearly 4 million users and has a global community spanning over 150 countries. XION aims to address the distribution (user experience) and fragmentation (interoperability) barriers currently faced by developers and users by simplifying and unifying the user experience on its blockchain and connected ecosystem.

The extensive use cases built on XION cover multiple areas such as consumption, gaming, social finance, Crowdfunding, payment, and new use cases that were previously unachievable. A significant example is the EarnOS application built on XION, which disrupts the $1 trillion advertising market through blockchain technology.EarnOS launched its beta in the second quarter of 2024, has secured commitments of over $12 million, attracted over 500 creators, and partnered with over 40 global brands and institutions. Their beta product is launched in collaboration with globally renowned brands, including UberEats, Baskin Robbins, Sunglass Hut, and The North Face, and has received over 950,000 task completions.

SEI

On September 26, 2024, XION announced the integration of the Sei network into the XION ecosystem, leveraging its chain abstraction technology. Sei is a high-speed L1 blockchain optimized to support transactional applications, renowned for its speed and scalability. This integration achieves seamless Cross-Chain Interaction interoperability through IBC, enabling assets and users to move effortlessly across networks. This collaboration not only expands the influence of Sei but also brings XION's user-centric infrastructure to a broader community of developers and users, aiming to enhance the Web3 experience and accelerate mainstream adoption.

Solana

On June 11, 2024, XION announced the integration of the Solana network into the XION ecosystem via the Picasso network. Solana is one of the most commonly used blockchain networks and is the fourth largest blockchain ecosystem.[Solana]The integration of (https://www.coingecko.com/learn/what-is-solana-sol-and-how-does-it-work?locale=en) has opened up opportunities for two networks, allowing for the flow of users and liquidity, and enabling seamless cross-chain interactions through a single account.

Avalanche

On May 16, 2024, XION announced through Landslide that it will[Avalanche]Integrated into XION. Avalanche is a network consisting of multiple subnets, using the Avalanche network as the main network. Avalanche aims to achieve blockchain interoperability and has an ecosystem with a single and multi-purpose subnet. The integration between XION and Landslide introduces chain abstraction into Avalanche and enables native asset flow between Avalanche and the Cosmos ecosystem, providing opportunities for innovation and increased liquidity.

BNB Chain

On May 2, 2024, XION and TOKI announced the introduction of their chain abstraction to the Binance Smart Chain (BSC), a compatible EVM L1 network, through their collaboration. This integration combines XION's chain abstraction with TOKI's IBC capability, enabling seamless cross-chain interaction communication between the Cosmos and BSC chains. Announcement

Injective

(https://www.coingecko.com/learn/what-is-injective-inj-crypto?locale=en) is the first Block chain network integrated into the XION ecosystem. XION announced this integration on May 25, 2024 announcement. Injective is a Block chain network designed for Decentralized Finance (DeFi) construction, this integration not only allows local asset flow, but also enables users to trade more easily without dealing with the complexity typically associated with Block chain dApps.[Injective]

Final Thoughts

XION hopes to play a key role in promoting mass adoption through its chain abstraction to improve user experience. Although blockchain currently performs well in terms of efficiency, accuracy, and security, the user experience is not ideal due to technical details such as Private Key and gas fees, which hinder the rise and adoption of the industry.

As the project progresses, we may see interesting use cases of projects in the XION ecosystem that can reach new user groups. The ecosystem has shown a very rapid rise in both users and developers, and has a very strong community. However, be sure to do your own research before interacting with any protocol, and note that this article only discusses XION for educational purposes, not for financial advice.

Statement:

1. This article is reproduced from [CoinGecko]，copyright belongs to the original author [CoinGecko], if you have any objections to the reprint, please contact Gate Learn Team, the team will process it as soon as possible according to the relevant process.
2. Disclaimer: The views and opinions expressed in this article are solely those of the author and do not constitute any investment advice.
3. The other language versions of the article are translated by the Gate Learn team, and the translated articles must not be copied, transmitted, or plagiarized without mentioning [Gate.io].