XinFin’s XDC protocol enters the foray amongst the greats
XinFin (www.XinFin.org) is a Singapore based Blockchain technology company focused on international infrastructure by creating an open source blockchain technology platform.
XinFin introduced the first ever hybrid blockchain platform which can handle both public and private blockchains simultaneously. They created an enterprise-grade blockchain dAPP called TradeFinex for minimization of global infrastructure deficit through retail investor participation, and increasing efficiency by workstream automation. They also created a dAPP called MyContract.co to deliver automated services for token crowdsale smart contracts.
All these services are run following the XinFin Digital Contract or XDC hybrid blockchain protocol. The XDC protocol aims to leverage the advantage of both public blockchain and private blockchain simultaneously. The XDC protocol is created to support smart contracts layer, know your customer (KYC) layer, and price stability by using its hedge pool for other cryptocurrencies, such as Bitcoin, Bitcoin Cash, Litecoin (LTC) and Ripple (XRP) on its tradefinex.org platform. The XDC protocol also supports fiat payment methods.
The network architecture of XDC is a combination of those of Ethereum and Quorum. The XDC network consists of two network states 1) Public and 2) Private. The public state refers to a part of the network that is accessible to any and all participants. The institutional and permissioned participants have the right to run private sub-networks. The transactional activities of these sub-networks are not visible to the unauthorised public. Special nodes called ‘master nodes’ are used to host these private sub-networks. The XDC protocol allows organizations to build their projects over the permissioned sub-network connected to XDC protocol.
The XDC protocol doesn’t require intensive mining like Bitcoin because it doesn’t use Proof-of-Work. Instead, XDC uses permissioned consensus similar to Proof-of-Authority deriving the advantage of Proof-of-Stake. Since XDC doesn’t use the energy-hungry Proof-of-Work consensus, hence, transactions under the XDC protocol burn less amount of electrical energy. Moreover, XDC protocol makes transactions run faster than other cryptocurrency protocols. It can process up to 2,000 transactions per second.
Let us check how XDC stands in comparison to other cryptocurrency protocols namely ETH, BTC, XRP and Zilliqa. The comparison is drawn with respect to the following parameters: Blockchain type, Consensus mechanism, Programing language, Energy consumption, Speed of transaction, Transaction fees, Usage, and Scalability.
Both Bitcoin (BTC) and Ethereum (ETH) are public blockchains, and use Proof-of-Work consensus, can process only 7 to 15 transactions per second, and consume heavy electrical energy. The Ripple XRP protocol uses public blockchain and shows promise in processing speed. BTC and ETH are not scalable. Lightning network and Plasma projects may help to improve the processing speed of BTC and ETH respectively, but these projects may also turn the distributed ledger projects into a centralized one. Zilliqa is designed as a scalability focused cryptocurrency protocol. Zilliqa’s public test network can process up to 2200 transactions per second. All these protocols associate higher transaction cost.
XRP is mostly used for payments and has no other applications. Zilliqa can be used to support Smart Contracts deploying and as a digital currency. Whereas, XDC can be used as Smart Contract, Hedge Pool and for Fiat Payments.
The following table shows a comparison of the XDC protocol with ETH, BTC, XRP and Zilliqa protocols.
It can be concluded that XinFin’s XDC protocol is advantageous over the other popular cryptocurrency protocols. The XDC hybrid blockchain protocol shows some hope in decentralized applications using distributed ledger technology. The capability of having private sub-networks along with public networks opens a new possibility in the blockchain ecosystem. XinFin is poised to reinvent blockchain technology with their enterprise hybrid blockchain platform.
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