TAXA Network: Blockchain 3.0 Interoperability
When friends come to you and talk about an alt coin they are currently invested in, it can be difficult to know if it’s a project you should put your money in or not. And with so many altcoins on the market, it’s important to keep up on your information regarding these alternative cryptocurrencies. One project which has recently had some chatter, but is otherwise relatively unknown is a cryptocurrency known as TAXA.
What is TAXA?
TAXA Network is a blockchain startup based in San Francisco which hopes to bring the world blockchain 3.0 faster than any other project. It is very similar to Ethereum in that it is a blockchain that is built to host and execute a number of dapps. But unlike Ethereum, its hosts have the dream of creating a better, faster, and more private browsing experience. One which could be used in the modern world for advertising, fintech, and even healthcare. Currently, TAXA doesn’t have a coin which is listed for sale on exchanges.
TAXA combines the functionality of numerous other blockchains in its effort to create one super blockchain. It currently uses functions which can be found in rival project Chainlink for its oracle solutions, while also using the technology found in Polkadot for its interchain communication. Basically TAXA is combining the best of several layer two blockchain projects in order to create what they see as the best blockchain of all.
Who Is Running TAXA?
TAXA was co-founded by TF Guo and Esther Hu sometime around 2015, and they have since grown their team to add a software engineer, community manager, and a graphic designer. It is very difficult to find additional information about the company and where they came from, however they have received several large investments from companies like Nirvana Capital, LinkVC, and BAI. If you don’t recognize these names, they are mostly venture capital funds based in Asia.
Additionally, TAXA recently partnered with Cocos-BCX, which is a blockchain that focuses on game development. Presently, it is difficult to build video games on the blockchain because of slow run time, privacy issues, and resources conflicts. These two companies hope that they can work in conjunction to bring gaming to the blockchain world.
What Is Blockchain 3.0?
So, just what is the blockchain 3.0, and what does it mean for society? Well, when blockchain first became an idea in 2009, it was mostly just Bitcoin, which has one purpose—payment processing. For a while, this was all anyone knew of blockchain, just spending or collecting money. But when Ethereum launched in 2015, people began to see that blockchain had other uses, such as running and executing dapps. And people needed a way to differentiate between to two. Thus Bitcoin became part of what is known as blockchain 1.0, while Ethereum was called blockchain 2.0.
But even Ethereum, as it embarks on becoming the 2.0 version of itself, still has limitations. One of the main issues is scalability, which Ethereum is trying to change by switching to a proof of stake consensus mechanism instead of its previous proof of work one. But its transactions are still limited. And beyond just that, the Bitcoin and Ethereum blockchains aren’t compatible. They are like silos in a grain field and one cannot be used on another. And it isn’t just these two blockchains. Tons of blockchains have interoperability issues that keep them limited and separate.
Blockchain 3.0 aims to solve all of these problems. Not only will they increase the number of transactions they can process, but they also aim to make it so that numerous different blockchains can interoperate with theirs. There are some projects which have already launched to allow blockchains to communicate with another, and they are Aion, Wanchain, and Polkadot. And other projects have launched to link the world wide web with the blockchain, the most famous project in this space being Chainlink.
And this circles back around to TAXA because TAXA is hoping to combine the way these different layer two solutions run to create one blockchain that is truly capable of everything. But they’ve also conquered another problem, Bitcoin has some built in privacy, while Ethereum and other more public blockchains do not. And lack of privacy is a real problem when it comes to people widely adapting blockchain. So not only is TAXA combining all the necessary elements, they are also doing so privately.
Should You Invest In TAXA?
Unfortunately, as of the writing of this article, there is still very little proof of concept behind TAXA. Sure, the project sounds great, and if it is able to work as promised, it really will make implementing blockchain into everyday life easier. But for a project that was funded with venture capital in 2015, TAXA hasn’t made it very far.
The TAXA network has launched, and as a developer, you are able to build on it. But a quick scan of their website shows no reviews or listed customer projects. And from their most recent update, which was in February 2021, it sounds like they still have a lot of work to do. They plan to offer an ICO sometime in 2021 for their TAXA token. It will be an ERC-20 token. As of May 15th, 2021, they have not yet published this token, and there has not yet been an ICO. Therefore, even if you wanted to invest right now, you wouldn’t be able to.
This doesn’t mean there aren’t reasons to invest when you can. After all, TAXA seems like a really decent project, they may just need some more funding which they will get during the ICO. And according to one post, those who invest during the ICO will receive some votes on which direction the company will go and thus is might be cool to have some say in a company like this.
That being said, investing in any cryptocurrency project, especially an altcoin like TAXA, is inherently risky, and thus you should discuss any major financial decisions with someone you trust before you make them. You should also thoroughly research and understand how the project you are investing in works, and its market potential, before risking large amounts of capital.
