XDC is the utility token of the XDC platform which enables developers to execute smart contracts and interact with the network’s features. It can also serve as a fast cryptocurrency that provides frictionless transactions. XDC is also how XinFin Validators receive rewards.
A brief history
The XDC network, formerly the XinFin network, was created in 2019 by the three co-founders, Atul Khekade, Ritesh Kakkad and Karan Bhardwaj. XDC aims to combine the advantages of public and private blockchains with a focus on the trade finance space. The network’s primary focus is on institutional investment firms which are seeking to incorporate asset tokenization into their businesses. To do this, the network introduces a proprietary hybrid blockchain architecture that improves liquidity management for these large investors. One unique feature of the XDC network is its form of consensus called XinFin Delegated Proof-of-Stake (XDPoS). The system can provide this efficient high performance by leveraging a process known as double validation to re-check transactions before they are committed to the blockchain. This mechanism is also stated to be more energy and computationally efficient when compared to the original PoS concept. According to XDC, the entire network consumes around 0.0000074 TWh of electricity to maintain consensus.
XDC in practice
The XDC token acts as a settlement mechanism for DApps built on the XDC platform. The XDC network has also launched an Ethereum token called XDCE that can be traded with XDC utility token at a 1:1 ratio. This gives the token holder flexibility to benefit from the Ethereum Network’s various utilities DApps. XDC also stands out as a “green coin,” because of its energy-saving benefits. The XDC coin is mining-free and does not require intensive mining. Additionally, to remain environmentally friendly, the funds received from cryptocurrency generation activities are used to invest in green energy and green crypto mining farms.