SXT: Powering the Future of Decentralized Systems
It has been proven time and again that centralized systems are vulnerable. Whether it was the financial crisis of 2008 or a recent data breach, these systems carry significant risks. From market manipulation by large institutions to the compromise of personal data in centralized storage systems, the impacts can be widespread. When a few entities control critical services, it increases the likelihood of failure, misuse, or unintended consequences.
Let’s take the example of the Financial Crisis of 2008:
Centralized financial systems, which were driven by big institutions focused on quick profits and handed out risky loans to people who couldn’t repay, especially for home purchases. When the housing market crashed, these loans lost value and caused a chain reaction which led to the collapse of major financial institutions.
Solving these issues by achieving true decentralization was one of the main goals behind the creation of Bitcoin. Satoshi Nakamoto, the creator of Bitcoin, wrote in his whitepaper, “The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust.” This, fueled with the hunger of having trustless, transparent, and secure transactions, created an ideal environment for Satoshi's vision–a peer-to-peer financial system that was independent of government or corporate control.
Alone in the last year, an estimated 600 million personal records were exposed due to breaches in various centralized storage systems and this number keeps on increasing every year. This highlights two major points:
a) The significant risk associated with concentrated data control
b) The need for a trustless, decentralized database
These breaches often result from misconfigurations, weak security measures, or targeted cyberattacks which leaves vast amounts of sensitive information vulnerable. As more personal, financial, and corporate data is stored in centralized systems, the potential for large-scale leaks grows.
Please keep in mind that the aforementioned are just two of the many examples of the risks associated with centralized systems, especially when it comes to valuable assets like your money or your data. Others, such as social media platforms and centralized record systems, are just as vulnerable to these exploits.
How SXT Empowers Decentralized Systems
SXT Chain is a decentralized database that witnesses data from both onchain and offchain sources and updates it in real-time. It stores this data securely and makes it queryable for developers. Using Proof of SQL, SXT’s ZK coprocessor, developers can easily access this data and even request custom indexing for specific smart contract events.
Let’s take a look at three major ways how SXT is empowering these systems
1) The Future of AI and Blockchain: Centralized databases can’t be trusted by decentralized applications, especially for tasks like financial transactions or smart contract execution. Additionally, as AI-driven apps grow, they need reliable data for autonomous operations. SXT Chain’s ZK-proven database allows smart contracts to process data from both onchain and offchain sources, making it ideal for both onchain and AI-powered applications. This decentralized approach ensures easy blockchain integration, thus enabling secure and autonomous financial transactions.
2) Eliminating Single Points of Control: Centralized financial systems hold enormous power over the flow of money, credit, and financial products. This concentration of power often leads to inefficiencies and manipulation. With a decentralized database like SXT, no single entity controls the network, making financial interactions more open, transparent, and accessible.
3) Data Trust and Security: Centralized data systems are prone to hacks, breaches, and single points of failure. When sensitive data is stored in a single location, like a database or a cloud provider, it becomes a prime target for cyberattacks. On the other hand, decentralized systems distribute data across a network which enhances security and minimizes breach risks. With ZK-proven data and trustless processing, SXT aims to tackle the vulnerabilities that come with centralized data systems.
In a world where data breaches and financial manipulation are becoming more frequent, pivoting to decentralized systems is no longer a choice but a necessity. By adopting the new wave of decentralized technologies, we can ensure that the control stays with the users and not a central figure. As the entire blockchain ecosystem evolves, the potential of decentralized systems is becoming increasingly real, paving the way for a more secure, inclusive, and transparent future.
