Overview By  Hennadii Cholovenko
Normal +2 237 25 May 2023
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Beldex (BDX): The Anonymous Coin That Challenges Monero

A student is only as successful as their drive to surpass their teacher. Beldex, initially developed as an asset for anonymous transactions (competing with Monero, Zcash, and Dash), eventually evolved into a more ambitious project—an ecosystem of confidential services with an emphasis on Web3.

From its inception, Beldex's developers aimed to outshine its parent asset—Monero, from which it was forked. They adopted Monero's code, as well as its cutting-edge privacy mechanisms and algorithms, with the intent to enhance them and add unique features. Beldex developers were especially drawn to Monero's public blockchain, which prioritized maintaining transaction anonymity and concealing all private participant data more than other alternatives. It was impossible to view transaction amounts, wallet addresses of senders and recipients, or access wallet balances or transaction lists in Monero. However, this blockchain had limited throughput and scalability. This prompted the creation of the Beldex cryptocurrency through a Monero hard fork in 2018, to resolve most of its parent asset's shortcomings.

A Paradigm Shift

Initially, the PoW-based Beldex network utilized the CryptoNote consensus algorithm, while ASIC-resistant RandomX was employed for mining, just as in Monero. To issue BDX coins and receive rewards for creating blocks, users set up mining nodes and mined coins using CPUs and GPUs.

In 2021, the developers opted for a paradigm shift, moving from CeFi to DeFi — a market that experienced a shortage of tools and services dedicated to confidentiality and privacy. To facilitate this transition, the network migrated to a Proof-of-Stake algorithm. Nonetheless, masternodes were retained (to deploy this type of node, 10,000 BDX must be frozen in a pool).

Beldex PoS Network

The introduction of Proof-of-Stake consensus significantly enhanced various key performance indicators of the Beldex network. Block creation time and size were reduced, and rewards increased. In comparison with the previous PoW network, block creation now takes only 30 seconds instead of 2 minutes. Block rewards saw a fivefold increase, from 2 to 10 BDX, with 62.5% allocated to masternode owners and 37.5% to the general fund. Additionally, Flash instant transactions (similar to the Lightning Network) were introduced.

At present, over 4 billion BDX are in circulation from the issued 9.9 billion coins. Up until 2025, the remaining coins will be released in small portions.

Further Changes Post-Migration

Developers continuously improve anonymity technologies and broaden their service range. As before, it remains impossible to identify transaction amounts, recipient and sender addresses, and wallet balances on the Beldex blockchain.

Other changes in the network include:

  • Establishment of the Beldex ecosystem (a collection of dApps services and applications)
  • Implementation of Ethereum Virtual Machine (EVM) for creating smart contracts and dApps
  • Availability of staking and traditional DeFi services, including lending and borrowing
  • BDX coin becoming the native asset within the Beldex ecosystem and for all local dApps
  • Introduction of Flash instant transactions
  • Availability of cloud hosting services for deploying masternodes
  • Implementation of dedicated BNS domains to simplify BDX wallet addresses
  • Transactions in the network being anonymous by default (unlike Zcash or Dash)
  • Ensuring confidentiality through cryptographic encryption methods and technologies (ring signatures, RingCT, hidden stealth addresses, zk-SNARKS, etc.)

The Beldex Ecosystem

The developers entered the DeFi market well-equipped. Over several years, they devised user-friendly services that preserved transaction anonymity and user confidentiality. Some of these solutions, such as the BChat messenger, are among the best in the software market.

The developers entered the DeFi market well-equipped. Over several years, they devised user-friendly services that preserved transaction anonymity and user confidentiality. Some of these solutions, such as the BChat messenger, are among the best solutions available on the market.

BChat. A decentralized anonymous messenger that ensures secure communication. Only the recipient can read encrypted messages and metadata. The latest versions include an integrated BDX wallet, making this solution significantly better and safer than alternatives like Signal, Telegram, or WeChat.

BelNet. A decentralized VPN service (dVPN) that anonymizes user IP addresses, supported by geographically distributed masternodes worldwide.

Beldex Browser. An anonymous web browser that doesn't track user activity or send data to advertisers, unlike centralized search engines like Google.

Beldex Privacy Protocol. A cross-chain protocol providing confidential transactions for BDX and other assets (BTC, ETH, etc.). Transactions between different blockchain assets occur within the Beldex network via reverse exchange (e.g., bBTC for BTC). Assets are credited to the recipient at a 1:1 exchange rate.

Beldex Wallet. A universal native wallet for storing, receiving, and sending BDX coins, as well as deploying masternodes. It is available in various formats for multiple operating systems: mobile versions for Android and iOS, browser plugins for Chrome and Firefox, and desktop versions for Linux and Windows. Node deployment is only possible on Ubuntu OS.

Beldex Bridge. A cross-chain solution for asset exchange between different ecosystems and networks. Bridges have already been built with the Ethereum and Polkadot networks, with more under development.

Advantages of Beldex Bridge:

  • Low exchange fees;
  • Instant process;
  • Cross-chain collateral creation procedure;
  • Increased market circulation for native BDX cryptocurrency;
  • All types of dApps can be used without risking native coin loss;
  • Easy replacement of wrapped assets with original ones.

Where can you buy and exchange BDX coins?

BDX cryptocurrency is listed on well-known centralized (CEX) exchanges like HitBTC, KuCoin, and Gate.io, where it can be bought and traded on the spot market. Additionally, due to its DeFi market focus, BDX can be exchanged via DEX exchanges and numerous swap services such as PancakeSwap, Exolix Swap, SwapSpace, Houdini Swap, and Simple Swap.

Exchanges and trading platforms for buying and exchanging BDX.

Exchanges and trading platforms for buying and exchanging BDX.

To sum up

Initially, Beldex aimed to increase competition among anonymous cryptocurrencies in the CeFi market but evolved into an ecosystem of confidential services for DeFi and Web 3.0. Developers shifted focus from a market where Monero was challenging to compete with, to a segment with virtually no competition for Beldex. The project has successfully created a unique ecosystem of confidential dApps services, launched a virtual machine, and smart contracts – areas where Monero still falls short. In some ways, the "student" managed to surpass the "teacher." The change in concept attracted over half a million new users to Beldex, and the active development team and multi-year roadmap suggest a bright future for the project.