Are You Curious About Why AXS Is Trading So High?

When it comes to issuing new blockchain tokens, the Ethereum network continues to be the platform of choice because of its efficiency and open-source nature. The problem with having so many ERC-20 tokens on the same network is that their transactions and mining can become overwhelming, thus slowing down the process and increasing fees. For this reason, side chain projects have emerged as sensible solutions, and this has in turn created profitable opportunities for tokens such as Axie Infinity.

The Axie token, which trades under the AXS symbol, can be used as a tool to enable other side chain projects. It can create smart contracts that can be used by just about anyone who wishes to develop distributed ledger app. The Axie development team wants to use the scalability features of ERC-20 tokens to do the smart contracts for these side chain projects. The smart contract itself is written in the Go programming language, so it is very secure and flexible in terms of handling multi-signature contracts.

Earlier this week, Axie announced that it was moving its operations to the Ronin side chain, thus prompting a bullish rally that boosted token value by 83%. Ronin is one of various side chain projects that are now in direct competition with the Ethereum network.

Axie offers four ways of using the token: One-time use for existing token holders, another option for users that are already on the AXI-20 chain, and yet another option for users who are new to Ether, ETH and other blockchain protocols. As can be expected, there is also an option for buyers and sellers.

For users that already own the AXI-20 token, Axie Infinity is a secure alternative for ETH transactions. Users who do not have the Axie Infinity token can still work with Ether transactions. By allowing users to own the AXI-20 on the same side chain, users can then use the same token for all transactions, effectively making AXI-20 an asset-backed trust token. All these developments point to a bright future in the field of decentralized finance technology, and there is no question that financial institutions will likely implement these solutions into their operations.