About XDC Network (XDC)

XDC Network Frequently Asked Questions (FAQ)

What is the purpose of the XDC Network and what are its main functionalities?


The purpose of the XDC Network is to provide a secure, scalable, and enterprise-ready blockchain infrastructure for global trade and finance. Its main functionalities include facilitating cross-border transactions with low fees, supporting smart contracts for automating processes, offering high transaction speeds with its consensus protocol, and providing interoperability with legacy systems and other blockchains for widespread adoption.




Who are the founders of the XDC Network and what are their professional backgrounds?


The XDC Network was co-founded by Atul Khekade and Ritesh Kakkad. Atul Khekade is an entrepreneur with experience in cross-border finance and blockchain technology, while Ritesh Kakkad is a technology specialist with expertise in telecommunications and data centers.




How does the delegated-Proof-of-Stake (XDPoS) consensus mechanism work on the XDC Network?


The delegated-Proof-of-Stake (XDPoS) on the XDC Network allows stakeholders to delegate their stakes to Masternode candidates, who run the network's infrastructure. Candidates with the highest stakes, combining their own and delegated stakes, become Masternodes. These Masternodes are responsible for creating, verifying, and validating new blocks in the blockchain. The system is designed to be democratic, energy-efficient, and to facilitate quick consensus while preventing centralization.




What transaction speeds can the XDC Network achieve, and how does it compare to other blockchains?


The XDC Network can achieve transaction speeds of up to 2,000 transactions per second (TPS), which is significantly higher than Bitcoin's ~7 TPS and Ethereum's ~15-45 TPS, although Ethereum's upgrades aim to increase this. The XDC Network's high TPS is facilitated by its unique consensus mechanism, offering fast and cost-effective transactions compared to many traditional blockchains.




What is the XinFin Network, and how is it related to the XDC Network?


The XinFin Network is a hybrid blockchain platform that combines the power of public and private blockchains with interoperable smart contracts. The XDC Network refers to the native blockchain of the XinFin ecosystem, utilizing XDC as its utility token. The network offers secure, scalable, and highly efficient transaction solutions for global trade and finance. The XDC Network is essentially the core component of the broader XinFin ecosystem.




How do interoperable smart contracts on the XDC Network benefit its users?


Interoperable smart contracts on the XDC Network allow for seamless interaction across different blockchain platforms, enhancing user experience by enabling more complex transactions and applications. They provide operational efficiency, access to a wider ecosystem, and the potential for innovative cross-chain functionalities, which can lead to cost savings, increased market opportunities, and improved liquidity for users.




Can you explain the idea of XDC Network being a hybrid blockchain platform?


The XDC Network is a hybrid blockchain platform that combines the traits of both private and public blockchains. This means it offers the transparency and security associated with public blockchains while also providing the speed, low cost, and privacy features of private networks. Businesses can leverage the XDC Network to conduct secure, efficient, and private transactions, while still benefiting from the decentralized nature of blockchain technology.




How does the XDC Network facilitate global trade and finance, in particular with ISO 20022 compliance?


The XDC Network facilitates global trade and finance by providing a fast, efficient, and secure blockchain platform that supports smart contracts and decentralized applications. With ISO 20022 compliance, XDC ensures its system is interoperable with modern financial communication standards, enabling seamless integration with existing global financial infrastructure and facilitating cross-border transactions, trade finance, and real-time payments, further streamlining international trade and financial operations.




What role does the native XDC coin play in the network's ecosystem?


The native XDC coin serves as the fuel for the XDC Network. It is utilized to pay transaction fees, smart contract operations, and incentivize network validators for securing the platform. XDC also acts as a medium of exchange within the network's ecosystem and is used for staking to participate in the network's consensus mechanism.




How many XDC coins are currently in circulation, and what is the total supply?


As of mid 2023, there were approximately 12.3 billion XDC coins in circulation, with a total supply capped at 37.5 billion XDC. However, please check a reliable financial source or the official XDC network statistics for the most current information as these figures can change over time due to various factors.




What is sharding, and how does the XDC Network use it to process transactions?


Sharding is a scaling technique that divides a blockchain network's database into smaller, more manageable pieces called 'shards.' Each shard contains a portion of the network's transactional load. The XDC Network uses sharding to distribute the computational and storage workload across a more extensive network of nodes, allowing for parallel transaction processing and increasing the overall capacity and speed of the network. This enables the XDC Network to handle a larger number of transactions per second, improving efficiency and scalability.




In what ways can one participate in the XDC Network and what are the rewards?


Participants can engage in the XDC Network as network validators by running XDC master nodes, where they can earn rewards in the form of XDC tokens. Developers can build and deploy decentralized applications (dApps) on the network. Additionally, token holders can participate in governance and consensus mechanisms, potentially earning staking rewards for their active involvement. Lastly, users can become community contributors by participating in discussions, providing feedback, and promoting the network for potential ecosystem growth benefits.




What makes the dPoS consensus algorithm used by XDC Network environmentally friendly?


The delegated Proof of Stake (dPoS) consensus algorithm used by XDC Network requires significantly less energy than the traditional Proof of Work (PoW) algorithms due to its design where only a limited number of elected master nodes (validators) participate in the transaction validation process. This reduction in the number of nodes that need to reach consensus leads to lower energy consumption and a smaller carbon footprint, making it more environmentally friendly.




How does the XDC Network ensure security and efficiency in its blockchain processes?


The XDC Network ensures security through the use of XinFin Delegated Proof of Stake (XDPoS) consensus mechanism, which reduces the risk of centralization and provides robust protection against malicious activities. Efficiency is achieved via low transaction fees, 2-second transaction confirmation times, and double validation for enhanced security without compromising speed. Additionally, the network employs smart contracts and sharding to improve scalability and transaction throughput.




What are the benefits of utilizing XDCPay for investors and businesses?


Investors and businesses that utilize XDCPay benefit from a highly secure, low-cost transaction environment with fast confirmation times, provided by the XDC Network's hybrid blockchain architecture. XDCPay facilitates easy integration of XDC and its dApps into existing systems and streamlined access to a growing ecosystem of decentralized applications, thus enabling efficient smart contract execution, which is particularly advantageous for enterprise-grade applications. Additionally, its user-friendly interface enhances the overall experience for both seasoned investors and newcomers to the blockchain space.