What is XDC Network (XDC)?
XDC is the native coin for the XDC Network, the world’s first hybrid blockchain technology organization. The XDC Network is a unique fork of both Ethereum and Quorum (ConsenSys). It’s an EVM-compatible solution for blockchain-based financial services. It offers DeFi services using smart contracts.
Who Founded XDC Network?
The founders of the XDC Network are Ritesh Kakkad and Atul Khekade. Kakkad is an entrepreneur. He’s founded a number of FinTech organizations and has over two decades of business experience. Khekade is a computer engineer. He has worked with some of the biggest Asian banks and assisted with blockchain implementations.
The goal of XDC was to offer blockchain-based financial services that would be faster, more scalable and would require lower transaction costs. It aims to provide enterprise-level solutions that bridge the gap between traditional finance and DeFi. As a blockchain-based platform, XDC is able to expand in international trade.
While the organization itself, initially known as XinFin Network, was founded in 2017, the asset behind the XDC Network was launched in 2019. Although the XDC price at launch was extremely low, balancing close to zero, days later, it was worth $0.01. However, it remained a mildly volatile asset with a low value for several years after its release.
In 2021, the asset started seeing some significant growth. By April 2021, the XDC Network price exceeded $0.10.
In August 2021, the XDC Network became the first blockchain company to join the Trade Finance Distribution (TFD) Initiative. It was selected thanks to its ability to connect traditional trade finance with the new digital tokenization. That same month, the XDC price nearly reached $0.20, its record height for the year.
In September 2021, the collaboration between XDC and the trade finance technology provider Tradeteq led to the world’s first trade finance-based non-fungible token (NFT) transaction. This on-chain operation has set a precedent for further trade finance NFT transactions and the tokenization of traditional assets.
What Are the Features of XDC Network?
According to the protocol, the overall supply of XDC Network tokens is capped at 37,500,000,000. The asset was designed to be deflationary. Therefore, it’s expected that the XDC Network price will increase as its supply decreases.
From the entire supply, 40% has been allocated to the community behind the project, including the founders and advisors. Around 10 billion tokens have been set aside for dApp development within the ecosystem. An equal amount consists of miscellaneous uses, such as burning, masternode staking, and Alphaex exchange.
Additionally, 6.66% of the assets are kept locked in case of any contingencies. These coins can only be accessed in case of an emergency. Other assets, such as the community allocation, release annually at a set rate, to ensure that the XDC price is maintained stable proportionally to its supply.
XDC Network contains a unique blockchain architecture. It was designed by utilizing a fork of Ethereum and Quorum, making it a hybrid blockchain. This enables compatibility and interoperability with the two blockchains via the use of smart contracts.
There are two primary uses of XDC coins – on-chain financial services and network security through staking. The network services include decentralized applications, smart contracts, and digital crypto wallets, among others. While XDC itself is a layer 1 asset, the network allows users to build layer 2 fungible and non-fungible tokens.
Platforms accessible on the XDC ecosystem include:
- XinPay – a browser extension that facilitates access to the XDC-based decentralized financial applications;
- TradeFinex – a platform for trade finance that enables the tokenization and digital use of credit and certificate issuance;
- Remix – a browser-based platform for developers that enables the creation, deployment, and execution of smart contracts;
- XDC Wallet – a free, open-source platform that hosts digital cryptocurrency wallets that enables all usual blockchain transactions. It can be accessed on the browser or on mobile app stores.
XDC Network coins are required to pay for the transaction fees on the network. Due to the hybrid infrastructure, the XDC price for the transaction fees is low compared to the blockchains it forked from, particularly Ethereum.
According to the project team, the XDC Network can execute more than 2,000 transactions per second (TPS), compared to 15 TPS on Ethereum. Furthermore, due to the hybrid structure, a single transaction can be completed as quickly as two seconds. The XDC price for gas is worth around 0.0001 USD.
The XDC Network has dual private-public states. This means that the key transaction data is kept completely private, with some information forwarded to the public network which ensures transaction immutability without compromising its privacy.
The consensus algorithm used on the XDC Network crypto ecosystem is Delegated Proof-of-Stake (XDPoS). XDPoS was chosen as it’s faster and more energy-efficient. According to the network, an XDC block consumes an average of 7,400kWh. XDPoS uses two types of validators – masternodes and standby validators.
To become a validator, a user must stake a minimum of 10 million XDC Network tokens. The masternode candidates must also submit Know Your Customer (KYC) documentation to verify their identity, thus incentivizing users to perform accurate validations and ensuring accountability in case of misbehavior.
Although XDC relies primarily on XDPoS, there is also an implementation of Proof-of-Work (PoW) in its system as an anti-spam measure. The PoW measures are applied when a new block is being proposed to the network.
As a hybrid network, XDC is under constant development, with researchers looking for new cutting-edge technologies and strategies to implement within the system. These features aim to increase asset utility, network security, and the potential for mass adoption.