What Is XDC Network? What You Should Know About $XDC

Key Takeaways:

• The XDC Network enhances global business efficiency with its enterprise-grade blockchain, offering rapid transaction processing and minimal fees.
• XDC's hybrid architecture and XDPoS consensus mechanism ensure high performance, low energy consumption, and robust security.
• The network's versatility supports various applications, including trade finance, supply chain management, and cross-border payments.

Blockchain technology has irrevocably transformed global industries by offering a secure and transparent framework for recording transactions. This paradigm shift impacts sectors such as finance, healthcare, supply chain management, and more, by streamlining operations and enhancing efficiency. Among the many innovations, the XDC Network stands out as a significant advancement in decentralized finance (DeFi) and tokenization.

What is the XDC Network?

The XDC Network, developed by XinFin, is an enterprise-ready, open-source blockchain protocol designed for real-world decentralized finance. This Layer-1 blockchain features an EVM-compatible, hybrid architecture, which supports both public and private chains. Utilizing a unique Delegated Proof of Stake (XDPoS) consensus mechanism, XDC Network achieves rapid transaction times, minimal gas fees, and impressive scalability, processing over 2,000 transactions per second (TPS).

Founded in 2021, the XDC Foundation supports the XDC Network, fostering growth through collaboration with a diverse community of developers, trade experts, and content creators.

How Does the XDC Network Operate?

The XDC Network is tailored for enterprise use in trade finance and asset tokenization. Its XDPoS consensus mechanism involves validators performing a minimal amount of Proof of Work (PoW) when proposing new blocks. This approach minimizes energy consumption and enhances resistance to spam attacks.

XDC Network Architecture

XDC's architecture incorporates real-time voting to select a pool of validators responsible for:

• Ensuring network integrity
• Converting transactions into legitimate blocks
• Maintaining synchronization with the network

Reward Mechanism

Every 900 blocks, or an epoch, a checkpoint block is created to manage rewards. Block signers tally signatures sent to smart contracts during the epoch, with rewards distributed based on Masternode signatures. Block creators are chosen in a sequential order, and a 10-second delay occurs if a Masternode fails to create a block.

Rewards are divided as follows:

• Infrastructure Reward (40%): Allocated directly to the Masternode.
• Staking Reward (50%): Shared among the pool of voters for a Masternode, based on token stakes.
• Foundation Reward (10%): Directed to a special account managed by the Masternode foundation, initially controlled by XinFin Network.

ISO20022 Standard and EVM Compatibility

XDC Network employs the ISO20022 financial messaging standard to ensure seamless integration with traditional financial systems. This compatibility allows businesses and governments to transition smoothly to XDC's decentralized network while leveraging its smart contract capabilities.

Developers can easily port Ethereum smart contracts to the XDC Chain due to its EVM compatibility. This versatility supports a wide range of applications, including decentralized applications (DApps) and tokenization of assets like property and securities.

Use Cases of XDC Network

The XDC Network combines public and private chain strengths to offer versatile solutions. Key use cases include:

• Trade Finance: Enhances global trade financing by reducing fraud and accelerating transactions.
• Supply Chain Management: Streamlines supply chain processes with smart contracts, improving transparency and reducing costs.
• Tokenization: Facilitates fractional ownership and efficient trading of real-world assets.
• Cross-Border Payments: Enables fast, low-cost international payments, promoting financial inclusion.
• Identity Verification: Provides a secure platform for identity verification, reducing the risk of fraud.

What is the XDC Coin?

The XDC coin is the native token of the XDC protocol, essential for transactions and smart contract executions. With a total supply of 37.7 billion (as of January 2024) and approximately 13.8 billion in circulation, XDC's distribution includes:

• 40% for founders and core team
• 27% for ecosystem development
• 27% for pre-placement
• 6% for the XDC Foundation treasury

XDC coins facilitate network operations, including smart contract execution and Masternode staking. Masternodes play a crucial role in network consensus, securing and stabilizing the system, and earning rewards for their contributions.

XDC Token Standards

The XDC Network supports several token standards:

• XRC20: The standard for fungible tokens, widely accepted for various digital assets.
• XRC721: The standard for Non-Fungible Tokens (NFTs), ensuring proper management and trading of unique items.
• XRC1155: A multi-standard token that combines XRC20 and XRC721, allowing the creation of multiple tokens within a single contract.

Security of the XDC Network

The XDPoS consensus mechanism ensures minimal energy consumption and resistance to spam. An upcoming enhancement, XDC 2.0, promises faster block times and finalization of transactions within six seconds, further strengthening network security.

XDC Network Improvement Proposal (XIP)

XIPs are crucial for the XDC Community, guiding the development of new features and technical standards. Influenced by Ethereum and Bitcoin Improvement Proposals, XIPs facilitate a collaborative process for proposing and reviewing network enhancements.

Addressing Major Challenges

The XDC Network addresses several challenges:

• Reduced Energy Consumption: XDPoS reduces energy use compared to PoW mining.
• Near-Zero Gas Fees: Enables cost-effective micro-transactions.
• Improved Scalability: Enhances TPS to handle a higher transaction volume.
• KYC-Based Node: Introduces a KYC-based node to address concerns about anonymous participants.

In summary, the XDC Network offers a robust solution for decentralized finance and enterprise applications, combining efficiency, security, and versatility to drive the future of blockchain technology.

Get ready to seize the opportunity! Bitrue is thrilled to announce the listing of XDC-based DOPU tokens on August 28, 2024. Mark your calendars and be among the first to trade this promising new asset. Don’t miss out—join Bitrue today and stay ahead in the crypto game

Stake $DOGS and $USDT to Share in a 1,000,000 Prize Pool!

• Register as a Bitrue member and complete KYC certification
• After completing the KYC verification, as long as your spot account has designated tokens and the balance reaches the minimum staking limited amount, you can participate, and you can redeem it at any time;

Click here for more details

FAQs:

• What makes the XDC Network unique compared to other blockchains? The XDC Network stands out due to its hybrid architecture, EVM compatibility, and efficient XDPoS consensus mechanism that supports rapid transactions and low fees.
• How does XDC's reward system work? XDC distributes rewards based on block creation and validation, with rewards allocated to Masternodes, staking participants, and the XDC Foundation.
• What are the primary use cases for the XDC Network? The XDC Network is used in trade finance, supply chain management, tokenization of assets, cross-border payments, and identity verification.