TenX is an Ethereum-based blockchain application featuring its own decentralised cryptocurrency, the PAY-token. The project strives to make cryptocurrencies more accessible to a wider audience through the introduction of a Visa credit card, as well as a payment app for smartphones and desktop computers.
TenX (PAY) Chart
Unlike other cryptocurrency-facilitating platforms, TenX does not simply provide a bridging application that allows for the use of both cryptocurrencies and fiat currencies. Instead, it goes one step further: it also provides a credit card through Visa, as well as a payment app.
This means users can spend their cryptocurrency balance in stores that only accept fiat currencies (like USD) and the exchange between the two is performed instantly, at the point of sale. This both makes cryptocurrencies more easily accessible (even to those who might not have specialised technological knowledge) and makes them easier to spend in the offline world.
Formerly, one of the main issues in terms of this type of cryptocurrency technology was that each cryptocurrency essentially functioned in its own small biosphere, without interacting with others. This makes it hard for cryptocurrencies to become widely accepted, since they each operate in a small niche.
However, TenX allows for a wider use of all sorts of cryptocurrencies (Bitcoin, ETH, DASH…) via one single credit card, with instantaneous access and exchange at the point of purchase; for this purpose, TenX uses the COMIT network.
This acronym stands for “Cryptographically-secure Off-chain Multi-asset Instant Transaction” and it facilitates blockchain interoperability. In order to do this, it allows for instant transactions which are enforced using off-chain smart contracts. Because it deals with multiple blockchains, it needs to solve the problem of double spending attacks (i. e. attempts to spend the same coins twice) without requiring a settlement onto the underlying blockchains: it does this by leveraging payment channels and Hashed Timelock Contracts (HTLC) across chains.
Like other cryptocurrency platforms, TenX also has its own token, called PAY. It does not aim to use this token to replace traditional or other cryptocurrencies, but instead uses it as a proof of stake in the network. 200 million PAY tokens were sold in the ICO and while ownership of PAY is not strictly necessary in order to use the TenX card, these tokens do have advantages.
Whenever users use their TenX card in store, they pay a fee, and whereas part of this fee goes to Visa and part of this fee goes back into TenX, with 0.1% of the fees being divided among the card holders, PAY token holders receive a cut of 0.5% of all card fees (in ETH). This will initially be distributed on a monthly basis, but TenX hopes to speed up this reward process in the future and issue funds on an hourly basis instead. Particularly if TenX becomes more widely used in the future, therefore, holding PAY tokens can prove to be very lucrative.