XDC Network 101: A Solution for Slow Financial Systems
XDC Network emerged to meet the needs of decentralised finance (DeFi) networks and digital assets globally. Today’s financial system is slow, expensive, and insecure for local and international payments. The project was designed to solve these problems, thus using a hybrid consensus mechanism to provide fast, cheap, and secure payments. It also provides interoperability between different blockchain networks and traditional financial systems.
The platform offers multilingual programming support and smart contract technology. Therefore, XDC Network provides a secure, scalable, and integrated infrastructure for digital asset transactions and applications worldwide. Users can develop their applications through the platform, while others can access DeFi features, including international payments. In this article of Zatrun.com, we have compiled everything you need to know about XDC.
What is XDC Network?
Formerly known as XinFin, XDC Network is a hybrid blockchain focused on business and finance. The network operates through its native currency, known as XDC coin, which supports many new generation technologies, including smart contracts. The blockchain also can operate at extremely fast speeds, processing up to 2,000 transactions per second, with a transaction taking less than two seconds to complete. The platform achieves this transaction speed through a hybrid consensus mechanism known as Delegated Proof of Stake.
The platform aims to create a highly scalable and secure blockchain that includes an authorization and retail class. The network is attempting to correct network congestion, increasing transaction times and gas fees. Additionally, it is building a truly decentralised blockchain that can work with Ethereum Virtual Machine (EVM) and uses many security mechanisms. The ecosystem, which can work with many blockchain platforms, targets Dapp developers and institutional investors.
How Does It Work?
XDC Network was designed to be a scalable, high-performance blockchain platform that supports real-time settlement of digital assets. The platform provides horizontal scalability with sharding and a Delegated Proof-of-Stake (DPoS) consensus mechanism. The native token, XDC, is used to speed up transactions on the network and provides access to network services. For example, developers need to use XDC to deploy their decentralised applications on the network.
The platform provides high scalability and flexibility. With interoperability, XDC Network is a complete blockchain network that allows for inter-blockchain digital asset transfers. It also supports international asset trading. XDC Network separates institutional customers as a special class, thus separating high-level financial transactions. It also allows these transactions to be made without sacrificing privacy. Thus, it creates a fast and secure transfer ecosystem. Users can tokenize real-world assets through the platform, such as commodities, currencies, and bonds.
What is XDC Token? Is It a Good Investment?
XDC is a utility token that supports the XDC Network. With this token, users can access various services. When a developer creates a decentralised application (Dapp) on the network, they must pay for its deployment using XDC tokens. This means that the token is used for services within the ecosystem. Additionally, the token serves different purposes, such as paying gas fees and rewarding network validators.
Gas fees, which are required to transfer any cryptocurrency, can be paid in the form of XDC coins. Payments made with this cryptocurrency are less costly. Moreover, users who verify transactions on the network’s nodes receive payments in XDC coins, increasing their returns and enhancing the security of the network.
XDC Network appeals particularly to institutional investors with its environmentally friendly, highly scalable, and secure blockchain. The platform operates efficiently in blockchain and cross-border cryptocurrency transfers and enables developers to distribute Dapps. All these factors make the future of XDC coin brighter. CoinMarketCap data indicates that XDC coin is currently the 84th largest crypto, with a market capitalization of $532.1 million, demonstrating widespread adoption of the project.
