What Is XDC Network (XDC) How It Works & Where To Buy It?

The XDC Network is positioned in trade and finance – it aims to incorporate various technology innovations to facilitate global trade using blockchain technology.

XDC token is the utility token of the protocol, and network validators are also rewarded in XDC tokens.

The XDC token is currently the 94th largest cryptocurrency by market capitalization.

 

How XDC Network (XDC) Works

With an emphasis on trade finance, Singapore-based XinFin merges the benefits of public and private blockchains. Institutional investment companies seeking to incorporate asset tokenization into their business models comprise the network’s main target market.

For the abovementioned major investors, the network delivers a customized hybrid blockchain architecture that enhances liquidity management and streamlines processes.

Several core components make up the innovative global infrastructure of XinFin:

Developers

The trade finance sector is flourishing and is expected to grow to $90 billion by 2030. The XDC network has an elaborate community of developers that span Dapp developers and some of the best computer scientists in the world. The innovative XDC market allows these developers to sell the Dapps to potential customers. These trade transactions help to bolster the growth of the network and the community at large.

Creation Of Decentralized Oracles

On XinFin, anybody may set up a decentralized oracle network. Off-chain sensors known as oracles participate in the transmission and receiving of data between multiple blockchain networks. They are one of the major industry advances since they allow blockchains to significantly expand their use case possibilities.

Cross-Chain Swaps

One of the most exciting upcoming features of the XinFin network is the support of cross-chain swaps. The hybrid relay bridges, instant block finality, and enhanced interoperability are already major value proponents of the network, but cross-chain swaps are likely to accelerate international trade.

Institutional Level

XinFin is positioned in global trade and finance and achieves core functionality with the help of a XinFin digital contract and other exclusive features. This functionality takes place on various levels and the institutional level is one of the key components of the XDC network. This level is inclusive of both partnered and private networks.

Unique Consensus Mechanism

The XDC Network utilizes a unique consensus mechanism called XinFin Delegated proof of stake (XDPoS). This consensus mechanism is much more energy-efficient than traditional proof-of-stake models. It allows the network to achieve optimal speed and efficiency without comprising security. Consensus issues are also resolved efficiently by using a unique stakeholder approval method.

Network Validators

Becoming a validator on the XDC network requires a significant investment (staking 10,000,000 XDC tokens) and completing a KYC process. While some may consider this to be rather extreme, the intent behind this is to ensure that nodes on the XDC Network are heavily invested in maintaining the security and efficiency of the network.

Validators are tasked with the validation and conversion of producers’ transitions into authentic blocks. After accumulation, validators facilitate the broadcasting of these blocks throughout the network. As is the case with many blockchain protocols, nodes that underperform are penalized and sequentially removed.

KYC Masternodes

Services that adhere to regulatory compliance are made possible thanks to KYC masternodes. These nodes are responsible for hosting and conducting various KYC protocols to ensure the integral network needs, as well as the needs of the subchains, are being met efficiently.

XDC: Utility Coin

The protocols utility token plays an integral role in optimizing functionality in the network. Smart contract execution is handled by using XDC tokens and validators rewards are also paid in XDC.

XDCE: Ethereum Token

Another component of the XinFin network that makes the protocol incredibly innovative is the incorporation of a dual token system. This is done for two main reasons; to improve the functionality and to increase the liquidity in the ecosystem. The XDCE token is simply an Ethereum token (ERC-20) version of the XDC token. Additionally, users can then participate in DeFi products in Ethereum’s ecosystem.

The XDC Wallet

The XDC wallet is utilized for storing users’ XDC tokens. It aids in increasing blockchain adoption and is a simple and effective way for users to safely store their tokens.

Individuals seeking to research more about the XDC network can read the XinFin business whitepaper and the technical whitepaper.

 

What Is XDC Network (XDC) Used For?

The XDC token is the utility token of the XDC network and has various uses. Its main use is to power transactions on the network, much like ETH tokens are used to power transactions on the Ethereum Network.

The XDC token experiences significant price fluctuations, much like most cryptocurrencies. Swing and arbitrage traders try to capitalize on volatile price movements. When trading volumes are high, these types of traders can lock in a substantial profit. However, it should be noted that these styles of trading are very risky.

 

Where To Buy XDC Network (XDC) Token

XinFin has become very popular in recent months; this is largely due to its unique value proponents and its hybrid blockchain.

XDC tokens are commonly traded on most centralized crypto exchanges. Before you’re able to purchase XDC, you’ll need to deposit fiat money onto an exchange; sequentially, XDC tokens will then be credited to your digital wallet on the exchange.

The crypto exchanges below are amongst the safest place where you can buy, sell and store tokens.

1. Binance (US Customers use Binance.US)
2. Gate.io
3. Coinbase
4. KuCoin
5. Bitfinex

Token holders can transfer their tokens to digital wallets; many individuals consider this to be a safer option.

Users can also earn interest on their tokens by making use of various decentralized platforms and their native DeFi products.

 

About XDC Network (XDC)

How long has XDC Network (XDC) existed?

Atul Khekade, a Blockchain ecosystem enthusiast in India who originally conceived the first permissioned Blockchain system for several Indian banks, and Karan Bhardwaj, a developer of ledgers for major international corporations, co-founded XinFin in 2017.

What’s controversial about XDC Network (XDC)?

Let’s take a look at the top controversy surrounding XDC Network (XDC):

• Centralized Node Structure – Many would consider the XDC node structure to be incredibly centralized. There is a KYC process for nodes and a minimum amount of 10,000,000 XDC to become a node.

  Most individuals consider this to be risky and too centralized. Others may consider this to be highly credible and more secure than the node structures in other crypto projects.

How many XDC Network (XDC) Tokens are there?

At the time of writing, XDC Network (XDC) has a circulating supply of 12.31B XDC

The total supply of XDC Network (XDC) is 37,705,012,699

Can XDC Network (XDC) be mined?

XDC tokens can’t be mined. Validators are rewarded in XDC tokens.

The XDC network uses a proof-of-stake algorithm which means that it isn’t possible to mine XDC tokens.

Some centralized exchanges allow users to earn yields from staking their XDC tokens.

What is the market cap of XDC Network (XDC)?

The market cap of XDC Network (XDC)is: the total amount of coins in circulation x the current market price of XDC.

XDC Network (XDC) Market Cap = 12.31B XDC x $0.02288 = $281 million (94th largest market cap)

XDC is currently one of the top 100 cryptocurrencies by market capitalization.

 

Biggest Competitors Of XDC Network (XDC)

The XinFin project has performed well since its listing, but it is up against some major competitors. Although the projects mentioned below service different needs, they abide by similar regulatory compliance laws and serve similar customers.

XDC Network’s Biggest Competitors are:

• QNT
• XRP
• XLM

 

What Are The Future Plans of XDC Network (XDC)?

The protocol will continue to expand its reach, streamline global corporate payments, maintain the system that enables hybrid relay bridges, and focus on bolstering both institutional and retail adoption of its services.

 

Pros And Cons Of XDC Network (XDC)

Pros:

• The Network Is Fully Democratized – XDC Network’s innovative design means that horizontal scaling is possible. This ensures that its XDPoS consensus mechanism is completely democratized. With the addition of interoperable smart contracts, global trade is fully within reach. The project is perfectly catered to global trade and can facilitate a network where individuals can trade finance assets.
• Environmentally Friendly – The consensus mechanism used by the XDC network is much more environmentally friendly than traditional Proof-of-Work algorithms. The computing power required to run the XDPoS algorithm (stake consensus network) is significantly lower than the energy required for mineable cryptocurrencies like Bitcoin.
• Nodes Need To Complete KYC – The XDC Network has implemented a KYC process for nodes. This provides a certain level of credibility and bolstered security which aids in enterprise adoption. This also ensures that regulation takes place to a certain degree, providing a trustworthy environment for regulators and network participants.
• Flexibility – XDC’s blockchain differentiates itself significantly from other blockchains because it is capable of running multiple private chains at once. The Hybrid blockchain design ensures that the transactional throughput on the XinFin network is superior when compared to traditional blockchain – this promotes adoption and improves user experience.

Cons:

• Centralized – The protocol’s node structure involves a KYC process, and many users consider this to be too centralized.