Bittrex Global Explainers: XDC

Introduction

Blockchain is one of those technologies that comes along and has the potential to change the world. Governments and large corporations are recognizing this and they're working to increase the speed that blockchain is adopted. However, by themselves public and private blockchains are unable to satisfy the unique data privacy needs of the governments and corporate entities. Public and private hybrid blockchains, however, are perfectly suited for these unique needs.

The XDC Network

XDC is a hybrid blockchain that combines the benefits of public blockchains with the advantages of permissioned blockchains to create an ecosystem that businesses and governments can comfortably and securely use. Let's see how it all works.

Overview of Sinfin

Sinfin stands for Exchange Infinite. It's based in Singapore and was specifically founded to create and build the XDC network. Founded in 2017, Sinfin focuses on optimizing international trade and finance. The blockchain's unique technology enables digitization, tokenization, and instant settlement of trade transactions.

The XDC network reduces organizations' reliance on complex foreign exchange infrastructures and increases the efficiency and flexibility of managing liquidity for financial institutions. This is accomplished by bridging the global infrastructure deficit with their open-source marketplace platform, Trade Finex, which enables peer-to-peer financial smart contracts between governments, companies, buyers, financial institutions, and suppliers.

Partnerships and Innovations

Sinfin recently partnered with Trade Tech, a UK fintech connected to dozens of banks, to complete the world's first trade finance-based non-fungible token transaction.

The XDC network is perfectly designed to tokenize trade finance instruments as on-chain assets, which allows them to be connected to the quickly expanding world of decentralized finance. True hybrids are able to connect public blockchains to private sub-networks. The XDC private network is implemented in a permissioned environment, meaning only approved entities are granted access.

Unique Attributes of the XDC Network

Sinfin's XDC network combines the power of public and private blockchains, providing the transparency and immutability of a public chain while also offering information protection of private chains. The network's private state was originally modeled off of J.P. Morgan's private and permissioned blockchain Quorum, however, Sinfin made some significant changes to the protocol.

For example, the consensus mechanism has been completely revised, replacing the proof of work mechanism with Sinfin's delegated proof of stake consensus, which has since become the core consensus mechanism of the network.

Additionally, the XDC network recently published a white paper discussing the network's proposed upgrade to its decentralized consensus engine. This upgrade provides the network with forensic capabilities and accountability, which is cutting-edge technology in the industry.

KYC and Network Architecture

Deploying KYC-compliant masternodes upon the XDC protocol makes XDC's network hybrid blockchain a highly trusted network for institutional adoption. The network architecture uses 108 masternodes to reach consensus and provide network security.

Unlike Ethereum, which faces congestion and high transaction fees, the XDC network incurs low fees with two-second transaction times. Techniques such as double validation, smart contract functionality, EVM compatibility, and stability combine to create the unique value proposition of the XDC network.

XDC and Ethereum Interoperability

Another important thing to mention is that XDC offers Sinfin Digital Contract and EVM-compatible smart contracts, meaning it is completely interoperable with Ethereum, so ERC20 tokens can easily migrate to the XDC network.

Since companies have both private and public states, the public side of the hybrid platform can be shared with the public. The XDC protocol handles all confirmations of cross-border payment transactions on the messaging layer, and the protocol facilitates real-world transactions of smart contracts with IoT integrations.

Through the XDC network, Sinfin is able to offer a hybrid blockchain technology to financial institutions and other corporate entities. They can securely host their own private data networks and make these networks accessible only to authorized users within the company while limiting visibility to everyone else.

The XDC network can be summarized as an enterprise-ready hybrid blockchain for global trade and finance that combines the power of public and private blockchains with interoperable smart contracts.

Keywords

• Blockchain
• XDC Network
• Sinfin
• XDC
• Hybrid Blockchain
• Trade Finex
• Delegated Proof of Stake
• Non-fungible Token
• KYC-compliant Masternodes
• Interoperable Smart Contracts
• Public and Private Blockchains
• Trade Finance

FAQs

Q: What is the main focus of Sinfin?
A: Sinfin focuses on optimizing international trade and finance, enabling digitization, tokenization, and instant settlement of trade transactions through the XDC network.

Q: What makes XDC Network unique?
A: The XDC Network is a hybrid blockchain that combines public and private blockchains' benefits, offering interoperability, low transaction fees, and enhanced security features such as KYC-compliant masternodes.

Q: How does the XDC network ensure data privacy and security?
A: The XDC network employs a permissioned environment for its private network and uses KYC-compliant masternodes, ensuring that only approved entities can access sensitive data and network resources.

Q: What are Trade Finex and its role in the XDC network?
A: Trade Finex is an open-source marketplace platform that enables peer-to-peer financial smart contracts between multiple entities, thereby facilitating efficient trade finance and liquidity management.

Q: How does the XDC network handle high transaction volumes and costs?
A: The XDC network employs techniques such as double validation and delegated proof of stake consensus, which allow low transaction fees and two-second transaction times, effectively managing high transaction volumes.

Q: Is the XDC network compatible with Ethereum?
A: Yes, the XDC network offers Sinfin Digital Contract and EVM-compatible smart contracts, making it completely interoperable with Ethereum, allowing ERC20 tokens to easily migrate to the XDC network.