There are several reasons why Ethereum was chosen as the underlying framework to build HEX. The Bitcoin blockchain would have been a potentially safer choice. The Ethereum blockchain has the second best security after Bitcoin. New blockchains are too vulnerable to 51% attacks. Bitcoin does not support the required programmable features to install smart contracts.
There is no way to launch a token in the Bitcoin ecosystem that can pay interest based on variable staking periods. Further, the Bitcoin community does not support onchain tokens as a whole. They are not interested in implementing features such as trustless interest. Bitcoin inflation is already used to pay miners instead of BTC owners. The Bitcoin chain is not suitable for launching second level tokens.
The required functionality to implement HEX is supported by Ethereum. Besides, it has a more diverse mining ecosystem with GPU miners and a higher transaction throughput than Bitcoin. The largest developer community of all blockchains and an active bug bounty program is also a plus. By leveraging the Ethereum infrastructure, HEX also gets extensive wallet support right after the launch. Hardware wallets like Trezor and Ledger included. Smart contract functions are executed through the integration of MetaMask. Finally, new token are easy to integrate into exchanges. They follow the established ERC20 standard.
HEX is piggybacking an existing ecosystem rather than starting a new block chain from scratch. This circumvents the 51% attack vulnerability of new proof of work block chains. ERC20 tokens are backed by the Ethereum mining pool. Eliminating so the need for independent mining to secure a new network. By negating above issues, HEX is able to pay token holders instead of miners. This makes it possible to earn trustless interest without middlemen.
With all the new trustless features in HEX, it could not exist as a standalone blockchain. While using the existing Ethereum blockchain, a own HEX blockchain doesn't need to be launched.
Ethereum is different from other cryptocurrencies like Bitcoin, Litecoin or even Ripple. Bitcoin was designed to be a currency. Decentralized, permissionless, peer to peer. Ethereum was designed to ease software processing. It is a next generation giant network of a huge number of connected computers. It uses the same underlying blockchain principles like Bitcoin. Vitalik Buterin started Ethereum in 2015. You can think of Ethereum as a programmable bitcoin.
Ethereum is the most versatile and dynamic invention in the crypto era. It is an open platform that allows to build distributed applications (Dapps) and smart contracts.
Applications you can use on the Ethereum blockchain today are:
Dapps have many important use cases that go far beyond online gambling. Although gambling apps are still very popular with Ethereum. Smart contracts contain immutable data and agreements without the need for a middleman. With any given inputs, there will be a known output. Code is King!
The Ethereum decentralized blockchain is not under the control of any single entity. After a smart contract is beeing deployed on the blockchain, nobody can prevent it from executing exactly as programmed. HEX is build as ERC20 token (based on a smart contract) on the Ethereum blockchain. Major traditional financial companies are now getting involved in blockchain technology as well. J.P.MorganChase is developing their JPMCoin on a variant of the Ethereum blockchain. Royal Bank of Scotland has built a Settlement Mechanism based on the Ethereum distributed ledger. Smart contracts change already many areas in our day to day life.
Ethereum is currently the cryptocurrency with the second highest market capitalization for coins. Ether (ETH), is the native cryptocurrency on the Ethereum blockchain. ETH is pure digital money. It can be sent to anyone anywhere in the world instantly.
Sending ETH and smart contract execution are subject to a charge. Those transaction costs, called gas, are a unit of computation for computational work and are paid in Ether (ETH). If Ethereum becomes a more used platform, there will be significant demand for Ether (ETH). This might increase it's value in the future.
Ethereum on Wikipedia
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