Currently, xLog is running a creator incentive program, offering $10,000 USDC to motivate creators. For those who love writing, don't miss out on this opportunity. In this article, I will share my experience of withdrawing funds and discuss some insights.
xLog utilizes the Crossbell blockchain. Let's take a look at what it is:
Crossbell blockchain is a platform that allows users to own and monetize their social activities. It is an Ethereum Virtual Machine (EVM) compatible blockchain with a set of smart contracts to implement protocols. Users can also synchronize their social media accounts to the Crossbell blockchain using the xSync feature.
In simple terms, Crossbell aims to solve the issue of social content ownership. When we post content on platforms like Weibo, we are merely users. Although we create the content, it is stored on the platform. For example, Weibo can easily delete, hide, or even ban our content. Crossbell can potentially solve this problem by making us the owners of our content, giving us the sole authority to manage it. It also provides tools for social interactions, such as following and content sharing.
Now, let's continue. As a Web3 novice, I have a vague understanding of blockchain-related matters, especially when it comes to transactions. Participating in xLog's incentive program gave me a profound experience.
The xLog incentive program is distributed through $MIRA, an ERC20 token on the Crossbell network.
Here are two questions I have:
What is ERC20?
ERC20 is one of the most common token standards on the Ethereum network. It defines a smart contract interface for issuing and managing tokens. ERC stands for "Ethereum Request for Comments," and 20 is the numerical identifier for this standard.
Under the ERC20 standard, any smart contract that meets the requirements can issue tokens and facilitate transactions on the Ethereum network. These tokens can be used in various scenarios, such as digital currencies and securities.
In summary, ERC20 is a specification or standard that enables interoperability between smart contracts and applications, allowing tokens to circulate easily on the Ethereum network.
What is the relationship between $MIRA and $CSB?
According to xLog's description, $CSB is a token used for interactions on the Crossbell blockchain. As writers, we are familiar with this token as it is used for actions like publishing articles. On the other hand, $MIRA is an ERC20 token that is compatible with the ERC20 standard and is primarily used for transactions, with a 1:1 correspondence to the stablecoin USDC.
Since $MIRA is not listed on any exchanges yet, it may require using Uniswap for free trading. Currently, it is only available on the Polygon network with a token address.
Uniswap and Polygon:
To address my questions, let's explore the platforms Uniswap and Polygon:
Uniswap is a decentralized exchange protocol running on the Ethereum blockchain. It utilizes an automated market maker mechanism, allowing users to trade cryptocurrencies without intermediaries.
As mentioned earlier, since $MIRA is not listed on exchanges and follows the ERC20 standard, we need a tool to convert it into a more commonly used digital currency.
Polygon is a framework for building Ethereum-compatible blockchain networks and scaling solutions. It uses a Proof-of-Stake (PoS) mechanism to process on-chain transactions, providing faster speed, higher scalability, and lower transaction fees.
Polygon's native token is $MATIC, an ERC20 token that can be exchanged with other Ethereum-compatible tokens.
Both Polygon and Ethereum support smart contracts and decentralized applications. Polygon is a multi-chain network designed to address Ethereum's scalability and cost issues. It offers a Layer 2 solution for fast and cost-effective transactions on Polygon, which are then anchored to the Ethereum mainnet.
With this understanding, we can proceed to extract $MIRA from Crossbell to the Polygon network for the subsequent conversion to USDC.
Extracting to Polygon:
According to https://mira.crossbell.io/, the first step is to extract our $MIRA from Crossbell to the Polygon network for easier conversion to USDC.
This process involves five steps, which can be completed by following the prompts. However, I prefer to understand the underlying principles.
Here's my understanding of each step:
Switch to the Crossbell network:
This step is self-explanatory. Since $MIRA is a token on the Crossbell network, we need to perform the extraction within this network. Clicking on your wallet will prompt you to switch to the corresponding network. If you are already on the Crossbell network, proceed to the next step.
Since we want to transfer $MIRA, we need to confirm that this operation is authorized by the account owner. Clicking "Approve" will prompt the wallet to confirm the authorized transfer amount. Since this step is within the Crossbell network, the transaction fee will be in $CSB, although it may display as 0.
This step involves actually swapping $MIRA to the Crossbell mainnet gateway. Since the transaction requires Crossbell's support, we cannot directly extract funds from our wallet across different networks. Therefore, we first need to exchange $MIRA to the Crossbell chain within our wallet. The detailed transaction records can be viewed in the wallet's activity log.
This step incurs a certain amount of gas fees, which are paid in $CSB as it is within the Crossbell network.
Next, we prepare to extract the $MIRA we transferred to the Polygon network. Since this operation is within the Polygon network, we need to switch to Polygon.
This is the final step where we extract the $MIRA from the Crossbell network to our wallet on the Polygon network. As this operation is within the Polygon network, the gas fees are paid in $MATIC.
By completing these five steps, the $MIRA in our wallet on the Crossbell network has been transferred to $MIRA on the Polygon network.
Note: Many users may encounter insufficient balance issues. As a novice in the crypto world, it is normal to not have any $MATIC in your wallet. However, in the fifth step (and subsequent steps), you need $MATIC to pay for transaction fees.
This is a characteristic of blockchain, as miners on the Polygon network will not work for free without transaction fees. You can choose to buy some $MATIC from exchanges like OKEx or Binance and transfer it to your wallet. Alternatively, you can try your luck on xLog's Discord to find someone willing to trade with you.
If you choose to use an exchange, it is recommended to use a separate and clean account or card. Most exchanges use C2C (customer-to-customer) transactions for deposits and withdrawals, where you transfer money to someone and they transfer coins to you, or vice versa. However, you cannot be sure if their funds or coins are clean, and engaging in money laundering activities may result in your account being frozen. Deposits are generally fine, but withdrawals should be approached with caution.
Convert to USDC:
Since $MIRA is not listed on exchanges, it only makes sense to exchange the $MIRA token on the Polygon network for other popular tokens. In my case, I chose USDC, but I have also exchanged for USDT before, and both worked fine.
This step is performed on Uniswap using the Uniswap platform. Just like the previous operation on the Crossbell network, make sure you are currently on the Polygon network and proceed with the approval process, which incurs a small fee. Then execute the contract for the swap, which also incurs a transaction fee. Once successful, you can view the detailed contract information and wait for a while until the new tokens appear in your wallet.
Reviewing the Transactions:
If you are interested in reviewing the transaction records generated throughout the process, you can visit the corresponding blockchain explorers (PoS Chain Explorer) or check the wallet's activity log.
Since the transactions involve both the Polygon and Crossbell networks, their respective addresses are:
- https://scan.crossbell.io/address/ + your wallet address
- https://polygonscan.com/address/ + your wallet address
This way, you can view the transaction history of your wallet. There may be several types of transactions, as defined by the ERC20 standard:
- Transfer: This generally refers to a regular transfer, such as when a friend sends you some coins or when you withdraw from an exchange.
- Withdraw: Withdrawal usually refers to the process of extracting or transferring assets from one address or account to another. It can be seen as a form of "withdrawal," where digital assets (such as tokens or cryptocurrencies) are transferred from one address or account to an external wallet or another blockchain network. When performing a withdrawal, a certain fee is usually required to ensure that the transaction is quickly included in a block and completed. Withdrawal actions often involve additional steps such as authorization and approval.
- Approve: Approve typically refers to an authorization mechanism defined by the ERC20 standard. This mechanism allows token holders to grant the right to use their tokens to other accounts. When a token holder wants to transfer their tokens to another address, they need to authorize that address, informing the token contract of the amount of tokens that address can use. This process involves calling the approve function defined in the ERC20 standard and providing the authorized address and quantity. Once the authorization is complete, the authorized address can call the transferFrom function to transfer the specified amount of tokens from the token holder's account without requiring additional authorization.
- Execute: This refers to the specific execution process of a smart contract. In this case, it involves transferring $MIRA from your account to X and then transferring USDC from X's account to your wallet.
Through this practical process, I gained a deeper understanding of blockchain. I am grateful for xLog's incentive program, and I encourage everyone to start creating content.
Lastly, after joining xLog, why not check out the lovely DIYgod?