What is XDC Network?

The XDC Network (XDC) offers commercial-grade decentralised services and blockchain architecture. The network was created by XinFin and blends a permissioned smart contract system with an open blockchain topology, allowing developers to alleviate regulatory worries amongst major financial institutions while still using the greatest features of various networks. The project’s ultimate objective is to use blockchain technology in order to reduce inefficiencies in the trade finance industry.

XDC is the native utility token that powers XinFin’s hybrid blockchain. It acts as a settlement mechanism for dapps built on the blockchain, and helps in paying transaction fees and in smart contract operations.

A brief history of XDC Network

XinFin was co-founded in 2017 by Atul Khekade and Karan Bhardwaj. Khekade is an experienced software programmer who designed the first permissioned blockchain system for a consortium of Indian banks. Bhardwaj is a blockchain enthusiast who has developed ledgers for many global tech giants like IBM and Fidelity. He left XinFin in 2018 to pursue his own startup.

XinFin’s blockchain technology solution is known as the XDC Network. It is a global, open-source, delegated proof of stake consensus network (XDPoS) that supports hybrid relay bridges, immediate block finality, and compatibility with ISO 20022 financial messaging standards. The network’s private/public hybrid architecture allows for institutional usage in trade finance and asset tokenisation. The XDC Network delivers scalable infrastructure for companies and independent community members, including interoperable smart contracts, 2,000 transactions per second, and Ethereum virtual machine (EVM) compatibility.

The XDC Foundation, which supports the XDC Network, continues to prosper globally, having achieved its primary aim of making trade financing more accessible to a larger audience. Since 2017, XDC Foundation has introduced several integrations, utility projects, dapps based on XDC, and collaborations.

How XDC Network works

XinFin combines the benefits of public and private blockchains with an emphasis on trade finance. The core market for the network is institutional investing companies looking to integrate asset tokenisation into their business strategy. The network deploys a patented hybrid architecture, enhancing liquidity management for these major investors. Dapp developers contribute to the network and may use its market to sell their dapps. There are also a number of tools available to help investors establish an efficient and creative development environment.

The developers devised a novel kind of consensus known as XDPoS. When compared to the original delegated proof of stake (DPoS) notion, this technique is more energy and computationally efficient. The system achieves excellent performance by efficiently using a unique stakeholder approval voting methodology to efficiently address consensus concerns.

On XinFin, anybody may create a decentralised oracle network. Oracles are off-chain sensors that can send and receive data from blockchain networks. They are one of the most significant industry advancements because they allow blockchains to extend their use case possibilities drastically. XinFin walks users through the full oracle construction process with step-by-step instructions.

What is XDC Network used for?

The network offers a regulatory-approved and KYC-integrated network to allow for major institutions to execute decentralised activities. The network is free and open-source, and as a result, the community has had enough opportunity to scrutinise the platform’s smart contract code.

XinFin gives users rapid block finality and trade transaction settlement. Developers clocked XinFin at an impressive 2,000 transactions per second (TPS).

When compared to previous proof of stake (PoS) and proof of work (PoW) networks, this approach enhances scalability and minimises energy usage. Miners in the Bitcoin network must compete against one another through raw computational power. This need is what drives energy usage. The lower energy usage of XinFin is because the PoS systems remove miners from the equation; instead, XinFin stakers and validators safeguard the hybrid blockchain network. As a result, XinFin uses one-tenth of the energy required to secure Ethereum-based PoW mining operations.