What is XDC?
All You Need to Know About $XDC
Blockchain’s Impact
Blockchain technology has reshaped industries worldwide by offering a secure and transparent way of recording transactions. This has brought significant changes to sectors such as finance, healthcare, and supply chain management, streamlining processes and boosting overall efficiency.
Introducing the XDC Network
Among today’s blockchain innovations, the XDC Network stands out as an enterprise-ready, open-source platform designed for decentralized finance with a strong emphasis on tokenization. Thanks to its user-friendly hybrid architecture, XDC supports hybrid relay bridges, encourages interoperability, and achieves near-instant block finality. Below, we’ll explore how XDC works, along with its main benefits and use cases.
What Is the XDC Network?
Developed by XinFin, the XDC Network is a Layer-1, EVM-compatible blockchain protocol built for real-world decentralized finance, placing tokenization at the forefront. It leverages a specialized Delegated Proof-of-Stake (XDPoS) mechanism to offer rapid transaction speeds, minimal gas fees, and can process more than 2,000 transactions per second (TPS).
Community-driven support led to the creation of the XDC Foundation in 2021. This organization collaborates with developers, trade experts, and content creators to foster wider adoption and ongoing development of the XDC ecosystem.
How Does the XDC Network Work?
The XDC Network is designed as a high-performance blockchain platform tailored for enterprise solutions, especially in the realms of trade finance and asset tokenization. It relies on XinFin Delegated Proof of Stake (XDPoS), where validators perform a small Proof of Work (PoW) step when proposing new blocks. This approach minimizes energy use and makes the network highly resistant to spam.
XDC Network Architecture
With XDPoS, validators are selected through real-time voting. These validators must:
- Protect the network’s integrity
- Combine transactions into verified blocks
- Keep their nodes in constant sync with the network
Reward Mechanism
A 900-block cycle, known as an epoch, includes a special checkpoint block called the “block signer,” tasked with overseeing reward distribution. This block signer records each block signature, and the number of signatures associated with a Masternode determines the rewards it receives.
Block creators rotate in a sequential order, giving every Masternode holder the chance to create and sign blocks. If a Masternode fails to create a block, the system waits 10 seconds before passing the task to the next Masternode in line.
Reward Sharing
Coin-holders can vote for specific Masternodes, and rewards are shared among them. For the first two years of each 900-block epoch, a 250 XDC reward is given based on how many signatures a Masternode has contributed. Afterward, rewards are split into three parts:
- Infrastructure Reward (40%): Goes directly to the Masternode
- Staking Reward (50%): Distributed among the voters for that Masternode, proportional to each voter’s stake
- Foundation Reward (10%): Allocated to a special account managed by the Masternode foundation, initially overseen by XinFin’s founding team
Coin-holders who remove their votes before the designated checkout block do not receive any share of the staking reward.
ISO20022 Standard
To ensure compatibility with existing financial systems, the XDC Network implements the ISO20022 messaging standard. This allows businesses and government agencies to smoothly transition to a more robust decentralized environment powered by XDC’s smart contracts.
Additionally, because the XDC Network is EVM-compatible, Ethereum-based smart contracts can be migrated with minimal adjustments, facilitating broader adoption by developers already familiar with Ethereum tools and workflows.
Versatility and Use Cases
The XDC Network supports public, private, and consortium-owned blockchains, making it suitable for diverse applications—from peer-to-peer trading platforms and blockchain-based insurance to end-to-end land registry systems and beyond.
Its speed, security, and trustless design offer a solid foundation for DeFi projects, paving the way for global, round-the-clock financial markets without the need for central authorities.
Low Gas Fees & EVM Compatibility
One of XDC’s standout features is its near-zero gas fees, making it extremely cost-effective for enterprise use. Transactions are finalized in roughly two seconds, ensuring swift and efficient settlements. Thanks to its Ethereum Virtual Machine (EVM) compatibility, tokens and projects (like ERC-20 and ERC-721) can easily migrate from Ethereum or other EVM-based networks.
EVM Compatibility
By being EVM-compatible, the XDC Network allows developers to build and deploy decentralized applications (DApps). Smart contracts run automatically and enforce agreed-upon terms without the need for intermediaries. The network’s interoperability also extends to traditional systems such as SWIFT and ERP, securing data transfer across different platforms.
Moreover, tokenization on the XDC Network turns real-world assets—like property, commodities, or securities—into digital tokens. These tokens can then be traded within the XDC ecosystem or on compatible chains, improving market liquidity and broadening investment access.