# What is X-Chain?

Ideally, developers should be able to build any application on the X-Chain Network without having to consider its scalability. The X-Chain Network solves prominent industry issues, such as:

* &#x20;Scalability,&#x20;
* Interoperability  and&#x20;
* Lack of developer incentives.

Regarding scalability, it is important to note that blockchains are not scalable by design due to the decentralized consensus mechanism. This leads to a significantly lower transaction per second (TPS) compared to a centralized database, as well as an upper limit on the data that can be stored in each block. As a result, users may experience delays and long wait times for transaction confirmation, which negatively impacts the user experience. The X-Chain Network aims to address these issues by focusing on increasing TPS, reducing transaction costs, and providing faster finality.

Interoperability is also a significant problem, as many blockchains exist and few have interoperability as a native feature. To transfer "value" from Bitcoin to Ethereum, a centralized exchange is required. The Ethereum is a shard protocol that allows blockchain networks to operate seamlessly together. The X-Chain Network is compatible with ERC-20, enabling true interoperability between them.

Finally, the lack of incentives for developers is a major problem in the industry, as they represent the most important human resource in the blockchain industry. Developers face many costs in developing dApps or infrastructure projects. The X-Chain Network has a solution for this problem, with the #Build2Earn protocol that allows developers to earn a basic income while working on their projects.


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