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.

What Is Ethereum? What Is The Ethereum Blockchain?

Ethereum logoEthereum Characteristics

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:

  • Cryptocurrency wallets that let you make cheap, instant payments with ETH or other assets
  • Financial applications that let you borrow, lend, or invest your digital assets
  • Decentralized markets, that let you trade digital assets, or even trade predictions about events in the real world
  • Games where you own in-game assets, and can make real money

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.

Read more:
Ethereum on Wikipedia

official Ethereum website

official HEX website

Blockchain Cryptocurrency Terms Explained

It is the primary internal cryptographic token of the Ethereum network. Ether is used to pay transaction and computation fees for Ethereum transactions.
A measurement of how much processing power is required to validate a transaction. For every transaction in the Ethereum blockchain a small fee needs to be paid. This transaction cost is called Gas and is collected by the miners. So you can call Gas the wage for mining. Transactions with higher gas prices are prioritized by the miners. Gas prices are most often measured in Gwei. Gwei is a denomination of Ether (ETH). 1 Ether = 1 000 000 000 Gwei.
Token are the currencies of projects which are built on the Ethereum network. These projects issued their own token to raise money.
Initial Coin Offering. Similar to an IPO (Initial Public Offering) in the non crypto world. Startups issue their own token in exchange for Ether (ETH). This is crowdfunding on the Ethereum platform.
IPO refers to the process of offering shares of a private corporation to the public.
The computational process of trying to solve the next block. It requires certain amounts of computer processing power and is rewarded on the Ethereum blockchain with Ether (ETH).
Proof-of-work. The consensus algorithm used by Bitcoin and Ethereum.
Proof of Stake. The proposed future consensus algorithm to be used by the Ethereum blockchain. Instead of mining in its present form, people that own ETH will be able to stake (lock up) their coins and generate network consensus. These stakeholders will be rewarded with ETH by doing so.
An external device (similar to a USB stick) that can securely store cryptocurrency. Hardware wallets are often regarded as the most secure way to hold cryptocoins. Two of the most popular hardware wallet models are Trezor or Ledger.
Code (programmed in Solidity) that is deployed to the Ethereum blockchain mostly interacting with the money flow. Smart contracts allow you to send money from A to B, on the condition that C happens.
It refers to a group of miners trying to control more than 50% of a network's mining power or hash rate. Transactions that have already taken place can be reversed. This is called "double spend".
ERC20 is a technical specification. It is a protocol that defines a set of commands that a token should implement. It is not a technology or piece of code.
It is a decentralized application that runs on a distributed computing system. DApps have been mostly popularized by the Ethereum Blockchain and are often referred to as Smart Contracts.

If you like the content here, please consider tipping some HEX or ETH. Thank you, regardless of size, it would be much appreciated.
HEX and ETH address: 0xC8CB91C3d41C80237c7901b815107d87080943bD

Does your wallet support human readable addresses? Test it with a transaction in HEX or ETH instead of above long address to: hex-staking.eth

Alternatively, if you feel generous today, remember you’ll get 10% more HEX should you wish to click my referral link before you claim or transform.