Dec. 21, 2019 | by Mike Albert
This new financial project helmed by HEX founder and cryptocurrency expert, Richard Heart, strives to change how investing and saving in currencies are carried out. HEX is a blockchain high-interest Certificate of Deposit (CD), the first of its kind, which allows users to stake the tokens they have to accumulate interest returns on them.
The Certificate of Deposit is a service only provided by the traditional banking system before now. Although it is still in its early stages, the project shows a lot of potential in integrating the principles of cryptocurrencies into investing.
What is HEX?
HEX is a smart contract on the Euthereum network which pays interest on the token staked by users on the platform. The number of tokens invested by the users determines the size of the rewards that will be yielded over a stipulated period.
The brand’s name is coined from its six unique traits:
• Open-Source
• Decentralized
• Trustless Interest
• Immutable
• Censorship-Resistant
• Store of Value
The brand cuts out the need for a centralized party and improves upon the flaws of other blockchain platforms while offering the consumers key benefits of the blockchain technology.
Comparison with the Traditional Banking Model
The major similarity between the models is that the investor stake in funds for a percentage of returns plus the original amount put in. According to Heart, even though HEX mirrors the existing model of fixed deposits, this particular system aims to improve upon all the intricacies of the model used by banks.
The rates of the returns provided banks after the investments are quite low relative to what HEX has to offer the investors. HEX works as a system of replacement for these inefficient banking and investment systems. HEX holders will be rewarded profit taken from banks and the government money printing system.
Features of HEX
The HEX system is built similar to Bitcoin, and the token is known as BitcoinHEX (BHX), which is an ERC-20 token that acts as a store of value. Early adopters of the token stand to gain massive returns with a value of 10,000 BHX for every 1 Bitcoin held by the user.
The inflation rate of HEX is also much lower than that of BTC, which means that users stand to gain a lot more than they ever could on the Bitcoin Blockchain. Also, instead of paying interest to miners as in the case of Bitcoin, the interest will be paid the users who hold a stake in HEX.
However, the rate drops every week after the week of launch, which simply means there will be a reduction in the amount a user can receive for every amount of BTC they invest. A user can also claim HEX by transforming the Euthereum (ETH) they have in their possession.
Users on the HEX platform will be able to access the essential functions offered by the Bitcoin; such functions include being able to send, dispense and hold their tokens. The HEX brand’s Trustless Interest trait will allow users to automatically earn interest on the money they stake through the tokens procured.
The security of HEX is much stronger because they make use of two independent security audits to ensure the safety of the users’ holdings. Still growing and evolving, HEX has a lot to offer investors who are looking to make a profit of their funds.
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