Enterprise blockchain solutions created room for deploying blockchains in business but they failed to provide a twin advantage:  Decentralization  & scalability. As a result of this, most of the businesses, especially in trade and finance  have feared deploying blockchains because of the concerns of regulations,  interoperability, scalability and speed. XDC is all set to change that narrative for the near future to make blockchains inclusive and ready for international trade and finance for enterprises and beyond. In this blog, we shall explore in detail how it makes that happen. 

What is XDC Network?

XDC or XinFin Network introduces the concept of hybrid blockchains which contains features of both private and public blockchains. Due to such a trade-off, it is well suited for international trade and finance. It is one of the first blockchains to introduce the concept of smart-contracts which could solve a lot of pressing challenges the international trade faces like complex paperworks, financial settlements, and high cost of business operations. 

And since it uses the XDPoS consensus mechanism, the transaction speed is way faster than other enterprise blockchains. For example, XinFin Network is one of its kind in public-private blockchains that can process transcations in less than 2 seconds. Followed by this, the  blockchain  also comes with other key trade-offs like; 

• It is one of the kinds of third generation blockchains that can help create specific use-cases oriented smart-contracts to perform specific functions. 
• It uses a noble consensus mechanism known as XDPoS which helps in quick finalization of the transactions and protection against any foreseeable attacks. Due to such an advantage, this blockchain  is a preferred blockchain among other blockchains for banking and finance which are looking for high end safety and security without compromising on their sovereignty. 
• Most of the other blockchains demand expensive hardware installation for running the validator nodes. However, when it comes to XinFin Network, anyone can run the masternode with minimal computing required. In this way, it becomes much more inclusive, decentralized and at the same time scalable for accommodating a variety of use-cases. WIth that said, let’s look at the working of this blockchain. 

How Does the XDC Network Work?

The XinFin Network brings the best of both Ethereum and Quorum where it includes Ethereum’s future sharding and Quorum’s application specific smart-contract functions. The trade-off makes the network suitable for taking international trade because its high-end smart-contract functions and real-time settlement capabilities make it suitable for a variety of use-cases. 

But what’s most intriguing is the ISO20022 messaging standard and XDC01 Protocol which allows communications between public  blockchains and legacy systems. Hence not just public blockchains like Ethereum, AVAX and Solana but also banks and other financial institutions can work in congruence with XinFin and perform functions like peer-to-peer trading platforms, blockchain-powered insurance, online digital asset-linked identity, end-to-end land registry record management, and financial settlements. 

How XDC Network Helps In Establishing Public-Private Blockchain Communications?

Ideally when it comes to interacting in a public-private blockchain model, a friction arises where counterparties need a trustless environment for block validation. XDC Networks XDPoS mechanism solves this challenge through a real-time voting mechanism that chooses a respective node for block validation. In this way,there’s no chance of tampering with the block data through cartelization.

 Furthermore, since XDPoS consensus mechanism is under play, there’s also a KYC based model that continuously checks performance of node members and creates a health list for nodes to assign them to validate the new blocks. In this way, even the problem of anonymous network members engaging in foul play can be mitigated. Hence establishing a perfect narrative for a public-private hybrid blockchain operation. 

 XDC Network Potential Applications: Use-Cases 

The XDC01 protocol,  bolstered by smart-contracts, eliminates intermediaries and allows a peer-to-peer transaction which is robust, scalable and secure. In the process, supercharging the following sectors:

Trade and Finance:

Despite the world being a global hamlet, we have failed to establish a real-time communication system, which is trustless, fast and efficient. As a result, from supply chains to banking, all of these sectors are struggling at one point or another in terms of providing true efficiency in their operations. XDC Network has partnered with The International Trade and Forfaiting Association which has brought companies, financial institutions and intermediaries engaged in global trade, forfaiting, supply chain and receivables financing on a single network to expedite communications and speed up settlements through the use of their regulated stable coins. In this way, it is transforming the world of finance and trade globally. 

Enterprises 

XDC introduced ISO 20022 which has helped to query data across different sectors irrespective of their nature. As a result of this trade-off, XDC brings a wide range of enterprise grade solutions within its ambit ranging from tokenization of everything to digital asset composer to cross-chain bridges. The wide array of benefits have been developed keeping in mind the compliance requirements so that business can function normally irrespective of the area where they operate. Hence, the XDC Network is solving one of the most troubled segments which is regulations that have haunted enterprises from switching to blockchains. 

Creators and Developers 

Restricting the efficacy of XDC Network to trade/finance and enterprise would be grossly unjustifying for creators and developers who want to explore a wider market which is EVM compatible and could help them easily access a wider market. The smart-contract features restore power back in the hands of the creators and no-fees. Furthermore, XDC Network also incentivizes developers by allowing them to build assets with existing libraries that they are using on Ethereum or other layer 1 blockchains. Hence, it has opened a new realm of possibilities when it comes to building, sharing and collaborating on a common partner network. 

XDC Network Current Ecosystem

A public-private hybrid model of XDC Network has solved the pressing challenges that enterprises faced, attracting them to either build on top of XDC Network or  deploy XDC Network tech architecture in their existing systems. They have 100s of projects and enterprises building on the network. For example, TradeTrust has used XDC Network to bring enterprises, banks and other stakeholders on a common platform for exchanging, endorsing, and verifying vital documents.  Likewise, BitFi has solved the tussle of custodial and non-custodial ownership through BitFi wallets powered by XDC as the underlying technology. Furthermore, BlockScan has partnered with XDC to provide consultation, development and integration services which can help enterprises and businesses to deploy blockchains in their operations. With time, XDC Network is touching various sectors to either disrupt them completely or transform them to meet with the future challenges. 

Conclusion 

With such trade-offs, as enterprises wish for a more sustainable, secure and cost effective solutions for doing blockchains, XinFin network has filled up that void and Zeeve is providing high performance XinFin Network nodes, APIs so that businesses can host their XDC nodes and broaden the scope of their business expansion for real-time settlements and improved business functions. 
Check out our XDC page and see how Zeeve can simplify your development experience on XDC Network.