Whitepaper ​

Problem Statement ​

Since the creation of Bitcoin over a decade ago, cryptocurrencies have come a long way. Despite their potential, they still face significant challenges that prevent widespread adoption and daily use. This section outlines the key issues Canxium aims to address, highlighting obstacles that have limited the use of existing cryptocurrencies.

Inflexible Supply Models: ​

Traditional cryptocurrencies typically use either an inflationary model, where new coins are continuously minted, or a deflationary model, where the total coin supply is fixed and burned. While each model has benefits, both can lead to supply crises, causing excess or scarcity that results in price volatility. These models support hoarding and speculation rather than promoting value growth based on real-world demand and usage. For daily utility, cryptocurrencies need to be demand-driven and more reliable.

Fluctuating Mining Costs: ​

Due to inflexible supply models, mining costs for cryptocurrencies can fluctuate widely. Changes in mining difficulty combined with fixed rewards create uncertainties, putting smaller miners at a disadvantage compared to well-resourced miners. This discourages new miners, reduces profitability, and disrupts decentralization. These fluctuations contribute to price volatility, decreasing reliability and hindering adoption.

Price Volatility: ​

Volatility is a major barrier to the mainstream adoption of cryptocurrencies. Rapid price fluctuations prevent cryptocurrencies from being stable stores of value and reliable mediums of exchange. Traditional supply models often fail to respond to real-world supply and demand, leading to instability and low trust from users and businesses.

Limited Accessibility: ​

Currently, only a small portion of the world’s population uses cryptocurrency and blockchain technology. Barriers include the complexity of crypto systems, limited mining opportunities, and high volatility in mining costs, which discourage investment in mining infrastructure. For cryptocurrencies to achieve mainstream adoption, mining must become globally accessible, and costs should be more predictable and stable.

Centralization of Mining Power: ​

Many Proof-of-Work (PoW) blockchains suffer from mining centralization, where a few large mining pools control the majority of the network’s hash rate. This concentration reduces decentralization, which is a core principle of blockchain technology.

In the following sections, we’ll explore how Canxium addresses these challenges. By prioritizing scalability, sustainability, stability, and reliability, Canxium aims to become a dependable and practical solution for users worldwide.