What Is Hot Cross (HOTCROSS) And How Does It Work? | KuCoin Crypto Gem Observer

2021/05/21 09:30:12

Where single-chain tribalism once persisted in the market, chain evangelism has now taken over. Blockchain enthusiasts have begun to realize that no single chain is perfect, and so the ability to move between different blockchains has become a blessing. However, niche communities are often underserved and do not have the resources to connect with other chains, making them lose relevance in the community.

Hot Cross identified this, and so was determined to serve underfunded teams or enthusiastic communities by building multi-chain and cross chain solutions that fill voids.

What is Hot Cross?

Hot Cross is a multi-chain tool suite created for Ethereum Virtual Machine (EVM) networks. Through these tools, it aims to promote ‘stickiness’ in these networks, a metric that focuses on the user retention of a platform. Essentially, these are tools that will allow teams and communities to flourish.

As a team of builders, Hot Cross creates solutions that enable users and teams to migrate to new networks. It believes that single chain developments are no longer viable in the current market, and so by connecting them with other chains, they will enjoy the best chance of success.

Niche communities are of particular interest, as they do not have the capacity to invest in technologies, which is where Hot Cross enters the picture.

How Does Hot Cross Work?

The unique thing about Hot Cross is that it does not provide any one single service, rather it plays the role of builder. As a jack-of-all-trades, Hot Cross leverages its strengths in web3, IOS and Android mobile platforms, and full stack developers to ‘find what’s missing’ within promising projects and communities and develop a solution for it.

One example was Cross Bridge V1 which it created to allow users to move between Ethereum (ERC20) and Binance Smart Chain (BEP20). It works by allowing users to lock their ERC20 tokens into a smart contract on the Ethereum network and in turn receive an equal amount of BEP20 tokens on Binance Smart Chain.

This led to the revelation that multi-chain mobility was incredibly important and underserved in the market. The team then began developing a suite of tools to serve this market, consisting of: Cross Bridge, Cross Pool, Cross Mint, Cross Connect and more.

Who Created Hot Cross?

Hot Cross is the brainchild of a team of experienced developers who have worked in the web3, IOS and Android spaces. This includes full-stack and senior level positions for blockchain-based developments. The Hot Cross project is co-led by Philip Arthur Moore and Pavlos Polianidis.

Philip has previous experience working with blockchain development, working as head of research and development at Frontier, a chain-agnostic DeFi aggregation layer, before moving into the position of COO.

Pavlos also has a background in the blockchain space, having co-founded Dappflow, an easy-to-use Dapp development platform, and acted as its CTO. Otherwise, he has held a number of blockchain development and engineering positions over the years.

What is the HOTCROSS Token?

The HOTCROSS Token is the native utility token of the Hot Cross ecosystem, designed to play a major role in the functioning of the project. The token distribution is as follows:

Protocol Incentives: 26.6%

Ecosystem Growth: 25%

Incubators: 10%

Reserves: 10%

Team: 10%

Public Offering: 10%

Liquidity Provision: 4%

Strategic Placements: 2.5%

Cross Pool Launch: 1.5%

Public Offering: 0.4%

What is the HOTCROSS Token Used For?

HOTCROSS is the native currency of the Hot Cross tool suite. It can be spent to gain access to products such as the Cross Bridge, Cross Pool and Cross Mint, as well as early alpha/beta stage access to products currently being developed such as Cross Connect. It also provides preferred access to Cross API.

Another intended use of HOTCROSS is governance, with the potential move towards a DAO. This would allow holders to play a role in deciding how the protocols and tools operate.

The token will be used as rewards for actors in the ecosystem for their participation and contributions to the project and its development. For example, this could be for creating liquidity on-chain, or minting NFTs.

Closing Thoughts

What sets Hot Cross apart from other similar projects is its dedication to a single cause rather than a single product. The talented and experienced team are able to leverage their development backgrounds to seek out promising projects with enthusiastic communities and provide them with the tools they need to continue growing.

Its unique approach to development that follows a product-market fit philosophy means that the team will always be providing a needed product or tool as expressed by the market. In fact, with several projects already built and others following shortly, it has already proved its capabilities in this area. It will be interesting to see how the project progresses based on this approach, especially following its KuCoin Spotlight appearance.

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