What Is XDC Network? All You Need to Know About XDC

Blockchain technology has been a game-changer for businesses across the globe. It has revolutionized the way companies operate by providing a secure and transparent way of recording transactions and data. A variety of industries use the technology, such as finance, healthcare, supply chain management, and more. It has enabled businesses to streamline their operations, reduce costs, and increase efficiency.

Blockchain technology has also enabled businesses to create new revenue streams by developing new products and services. It has allowed companies to create new business models that were not possible before, as well as enabling businesses to create new partnerships and collaborations with other companies.

XDC Network is an enterprise-ready, open-source, hybrid blockchain protocol specializing in tokenization for real-world decentralized finance. With its hybrid architecture that is developer-friendly in nature, XDC Network enables hybrid relay bridges, spontaneous block finality, and interoperability for blockchain users. XDC Network provides a secure and transparent way of recording transactions and data for businesses across various industries such as finance, healthcare, supply chain management, and more.

What Is XDC Network (XDC)?

XDC Network, also known as XinFin Network, was founded in 2017 by a group of entrepreneurs and developers, including Atul Khekade, Ritesh Kakkad, and Peter Yeo. They are all experienced professionals in the blockchain industry, with backgrounds in finance, software development, and entrepreneurship. The goal of the project is to create a blockchain platform that could address the limitations of existing solutions. The network, which is built on the Ethereum codebase, was modified to enhance its scalability, interoperability, and security. In 2018, XDC Network launched its mainnet and began providing financial and supply chain solutions to businesses and institutions.

In 2021, the XDC Foundation was established to support the network and encourage its development by community members. The network supports ISO20022-compatible messaging systems and provides interoperability with legacy systems.

How Does XDC Network Work? DPoS Mechanism and Smart Contracts

XDC Network is a high-performance blockchain platform designed for enterprise use in trade finance and asset tokenization. It utilizes a consensus mechanism called XinFin Delegated Proof of Stake (XDPoS), which involves validators carrying out a small amount of Proof of Work (PoW) when suggesting a new block to achieve consensus. This approach ensures that the network consumes very little energy and is highly resistant to spamming.

Masternodes are a critical component of the XDC Network’s consensus mechanism. They are responsible for validating transactions and participating in block creation, earning rewards for their efforts. In return for their role, masternode operators must stake a certain amount of XDC tokens and maintain a reliable and secure network infrastructure. This helps to ensure the network’s security and decentralization, while also providing incentives for node operators to maintain the network’s health.

One of the key features of the XDC Network is its near-zero gas fees, which make it cost-effective for enterprises to use for their business needs. The platform also boasts a 2-second block finality time, which ensures that transactions are settled quickly and efficiently. The XDC Network supports Ethereum Virtual Machine compatibility, allowing for the migration of Ethereum-based tokens and projects such as ERC-20 and ERC-721 to the network.

The EVM compatibility enables the creation of various smart contracts, which allow developers to build and deploy decentralized applications (DApps) that can operate transparently and autonomously without the need for intermediaries. For those who do not know, smart contracts are self-executing digital programs that facilitate, verify, and enforce the negotiation or performance of a contract between parties. This means that parties can engage in trustless transactions and have their contractual terms automatically enforced by the network. Additionally, smart contracts on the XDC Network are highly interoperable and can be integrated with other legacy systems, such as SWIFT and ERP, enabling seamless and secure data transfer across different platforms.

The XDC Network also enables the tokenization of assets through the use of smart contracts, allowing for the creation of digital representations of real-world assets such as property, commodities, and securities. These tokens can then be traded on the XDC Network or other compatible blockchain networks, providing liquidity and accessibility to a wider range of investors. By enabling fractional ownership of assets, tokenization can help to democratize investment and open up new opportunities for economic growth and innovation.

XDC Network Use Cases

XDC Network offers a hybrid blockchain solution that combines the best features of public and private blockchains. Its unique architecture provides a range of use cases for enterprises and governments to improve operational efficiency and reduce costs. Some of the key use cases of the XDC Network are:

• Trade Finance: The XDC Network provides a secure and efficient platform for global trade financing, reducing the risks of fraud and improving the speed of transactions.
• Supply Chain Management: The XDC Network’s smart contract capabilities can enable efficient supply chain management, reducing costs and improving transparency and traceability.
• Tokenization: The XDC Network supports the digitization and tokenization of real-world assets, such as commodities, real estate, and securities, enabling fractional ownership and efficient trading.
• Cross-border Payments: The XDC Network provides a fast and low-cost solution for cross-border payments, reducing the dependence on intermediaries and improving financial inclusion.
• Identity Verification: The XDC Network can provide a secure and tamper-proof platform for identity verification, reducing the risks of identity theft and fraud.

These use cases highlight the versatility and potential of the XDC Network to transform various sectors and industries by providing secure, efficient, and cost-effective solutions.

What Is the XDC Token?

XDC is the native utility token of the XDC Network that serves as a means of exchange for transactions and smart contract executions on the network. The total supply of XDC tokens is 37.5 billion, with a circulating supply of approximately 13.8 billion (April 2023). The token distribution includes 40% for founders/core team members, 27% for ecosystem development, 27% on pre-placement, and the last 6% for the XDC Foundation treasury. XDC tokens are required for network participants to access the various services offered by the XDC Network, such as smart contract execution, transaction fees, and masternode staking.

As already mentioned, masternodes play a crucial role in the network’s consensus, and their primary responsibility is to ensure the security and stability of the network. Masternode operators can earn XDC rewards for participating in the network’s consensus process. In addition to masternodes, anyone can participate in staking on the XDC Network by holding XDC tokens in a staking wallet. Stakers can earn staking rewards for helping to secure the network and validating transactions.

Source: XDC community

XDC Network Ecosystem

The XDC Network has a growing ecosystem of wallets, DApps, and products that are designed to support the use and adoption of its technology. Some of the key components of the ecosystem include:

• XDC Wallet: A secure and user-friendly wallet for storing, sending, and receiving XDC and other cryptocurrencies;
• MyContract: A smart contract creation and deployment tool that allows developers to easily create and deploy smart contracts on the XDC Network;
• Tradefinex: A platform for connecting participants in the global trade and finance industry, enabling global contracting, financing, payments, and settlements through authorized financial institutions;
• XcelTrip: A blockchain-based travel platform that allows users to book flights, hotels, and other travel-related services using cryptocurrencies. XcelTrip aims to make travel more accessible and affordable by eliminating intermediaries and reducing transaction fees;
• TurantPay: A payment gateway that enables merchants to accept payments in cryptocurrencies such as XDC, Bitcoin, and Ethereum. TurantPay offers fast transaction speeds, low fees, and a user-friendly interface for merchants and customers.

These components, as well as many others, work together to provide a robust ecosystem that supports the adoption and use of the XDC Network by enterprises and individuals alike.

Is XDC Network a Good Investment?

XDC Network appears to be a well-designed project with an experienced team and a clear mission to bring blockchain technology to the world of trade finance and asset tokenization. With near-zero gas fees, fast transaction speeds, and interoperability with financial messaging standards, XDC Network is positioning itself as an enterprise-friendly blockchain that can provide scalable solutions for businesses. As enterprise adoption of blockchain technology continues to grow, it is essential for blockchain projects to prioritize enterprise-grade features to meet the unique needs of the sector. In this regard, XDC Network has developed a suite of tools and solutions to support trade finance, supply chain management, and other use cases that can benefit from blockchain technology. While it’s important to conduct thorough research before making any investment decisions, XDC Network’s focus on enterprise-grade solutions and strong technical fundamentals make it an interesting project to keep an eye on in the blockchain space.

How to Own XDC?

To own XDC, you can use the services of a centralized crypto exchange. Start by creating a Gate.io account, and get it verified and funded. Then you are ready to go through the steps to buy XDC.

News on XDC Network

According to what was reported on the XDC Network blog dated April 4, 2023, XinFin’s blockchain technology is set to play a vital role in the Trade Finance Distribution Initiative (TFDI) blueprint. The blueprint aims to create a new market that will provide investors with access to alternative trade finance assets. XinFin’s blockchain technology will be used as a data repository and a ledger system for tracking and authenticating transactions. The project is a collaboration between the International Chamber of Commerce, the Asian Development Bank, and the Monetary Authority of Singapore. This development demonstrates the growing recognition of blockchain technology as a valuable tool for the financial industry, and it highlights the unique capabilities of XinFin’s hybrid blockchain platform. The initiative is expected to drive greater efficiency, transparency, and security in trade finance, and XinFin is poised to play a key role in this transformation.

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