What Is XDC Network?

As the world keeps expanding blockchain technology, new networks are emerging with fresh applications and more advanced features targeted at business ventures and global trade. One of the emerging networks taking up the mantle is the XDC Network, which is a hybrid blockchain whose mission is to revolutionize how business applies blockchain to cross-border payments, tokenization, and international trade finance. In this final guide, we will discover what is XDC, how it functions, and why it is one of the most exciting enterprise blockchain ecosystems.

What Is XDC Network?

XDC Network is a hybrid blockchain business-grade platform designed especially for cross-border finance and trade. It is based on XinFin Digital Contract (XDC) technology, which allows it to interlace the confidentiality of permissioned networks with the public nature of public blockchains. This means it stands more chances of acceptance by large corporates who are in need of secure, compliant, and scalable blockchain solutions.

Founded in 2017, the XDC Network relies on a delegated proof-of-stake (dPoS) consensus protocol that has excellent energy efficiency, a high level of transaction throughput, and low fees. The network was founded with a vision to address inefficiencies in supply chain management, cross-border payments, and trade finance.

The indigenous token of the XDC Network is the XDC Coin utilized in staking, transaction fees, and the execution of smart contracts. What is XDC network and how does it work? -- It allows for fast, cheap transactions, incentivizes validators, and supports decentralized applications (dApps) on the network.

What Blockchain Is XDC On?

XDC is founded on a blockchain that can be interfaced with other platforms and blockchains. The XDC network has EVM compatibility, whereby Ethereum-based smart contracts can be deployed on the XDC in a seamless way.

XDC is also offering Interoperability Bridges for assets to move between blockchains such as Ethereum, Binance Smart Chain, and several others. XDC is a multi-chain platform and thus an effective system that could be easily incorporated into the broader canvas of blockchain.

How Does XDC Network Work

XDC Network is a dPoS consensus algorithm with a masternode network for transacting and securing the network. Validators may be voted on by users using their XDC coins, and a reward is paid to users upon voting.

The main points of how XDC Network is operating are:

• High Transaction Speed: XDC has the ability to process over 2,000 transactions per second (TPS), which is sufficient for enterprise use.

• Low Fees: With transaction fees of just $0.00001, XDC has one of the lowest-cost blockchain infrastructures.

• Energy Efficiency: The dPoS consensus algorithm is energy-efficient, just as fitting for global cleaner tech standards.

• Hybrid Environment: Enterprises are able to use public and private blockchain architecture as regulation and privacy requirements dictate.

Being a smart contract-enabled platform, XDC enables developers to onboard decentralized applications (dApps) for trade finance, tokenization, asset management, and other applications.

What is XDC used for?

XDC is used for various purposes in the real world, predominantly finance and business. Hereafter is the use of XDC:

1. Trade Finance. The XDC Network itself is designed to combat inefficiencies in cross-border trade financing, plagued with opaqueness and expensive operations. With digitization and automation of trade documents on blockchain, XDC reduces frictions in international trade and accelerates and secures it.

2. Tokenization of Assets. XDC allows companies to tokenized real-world assets such as commodities, invoices, and financial instruments. Tokenized assets are tradable, collateralizable, or resell on DeFi platforms.

3. Cross-Border Payments. XDC facilitates instant cross-border payments with no cost involved without any intermediaries. The application is highly useful in remittance businesses and cross-border business transactions.

4. Decentralized Applications (dApps). Developers will not be restricted to creating dApps on the XDC Network, ranging from supply chain applications to financial services institutions.

5. Staking and Governance. XDC token holders will be able to stake their tokens to secure network validator staking and vote on governance proposals like protocol upgrades and policy changes.

The Verasity Team

Atul Khekade, Ritesh Kakkad, and Karan Bhardwaj founded the XDC Network to develop an enterprise blockchain platform. The team has an IT infrastructure background, blockchain software development background, and finance, and hence is well equipped to solve trade finance problems.

XDC Foundation is an organization that promotes network creation through resources, collaboration, and outreach schemes within a community. It cooperates with regulators and companies in taking blockchain adoption to mainstream financial markets.

Uniqueness of the XDC Network

So, why is the XDC Network different from other blockchains? Here's why XDC is different:

1. Hybrid Blockchain Model. Unlike open or proprietary blockchain structures, XDC provides a hybrid structure. It is appropriate for private ledgers for private data but has public chain disclosure on a needs basis.

2. Regulation-Friendly Compliance. XDC Network is regulatory compliant, which is needed for institutional adoption and trade finance. XDC is Know Your Customer (KYC) and Anti-Money Laundering (AML) regulation compliant.

3. Interoperability. XDC bridges facilitate the transfer of assets between blockchains deployable across other systems like Ethereum, Binance Smart Chain, and Corda.

4. Enterprise Partnerships. XDC partners with global businesses like TradeFinex, R3 Corda, and Impel, and this makes it more real and utilizable.

5. Scalability and Speed. Due to its low latency and high throughput, XDC can process a multitude of transactions and is therefore enterprise-ready.

VRA Token Applications

Though the network runs on XDC Coin, do note that XDC and VRA (Verasity Token) are two different entities. Whereas XDC is predominantly utilized within the XDC network, VRA has a relationship, perhaps in any manner, to the Verasity video streaming and game ecosystem.

The core use cases for XDC Coin are as follows:

• Transaction Fees: Billing for making transactions in the network.

• Staking: Verification within the network and incentivization.

• Smart Contracts: Decentralized application payments.

• Border Payments: Facilitating fast and affordable payments anywhere across the globe.

• Tokenization: Supporting tokenized products and assets.

The Future of XDC Network

As more and more consumers worldwide adopt blockchain technology outside of speculative finance and retail space contexts, there's never been such a high level of demand for enterprise-grade solutions based on blockchain as there's demand for right now. XDC Network stands as the best-positioned company in the current new economy as a pioneer of a new paradigm with hybrid infrastructure exclusively crafted to service global trade, financial, and asset tokenization requirements.

By focusing on real use, the XDC Network bridges the gap between traditional financial institutions and decentralized technology. With the hybrid solution, companies can transition from the private and public space in a way that enables them to operate in response to regulation requirements while still being able to reap the benefits of the openness and efficiency of blockchain.

Also, the scalability, energy efficiency, and reduced cost of transactions of the XDC Network are such that they provide a very good solution not only for enterprises but even for small and medium enterprises who would desire to innovate in applications like cross-border payment, lending in supply chain, and tokenization of financial and real-world assets.

In the near future, the XDC Network will have a pivotal part in the trade finance future, ongoing to cooperate with industry giants and build bridges to leading blockchain networks. With increasingly more developers and businesses becoming aware of XDC's value proposition, its native token and stack will have a good shot at becoming building blocks for next-gen blockchain adoption.