XinFin is a hybrid blockchain with the goal to solve many of the scalability issues other blockchain solutions have run into in the recent past.
XinFin’s hybrid nature means that it can switch between being a permissionless (public) and a permissioned (private) blockchain. Bitcoin is a good example of a permissionless public blockchain because anyone can interact with its ledger. Permissioned private blockchains are typically used for companies that want to keep their data private. One example would be Corda.
XinFin set out to develop a network that uses the best of private and public blockchains to allow users of the network to customize for their industry's needs.
XinFin also boasts being a quick blockchain at around 2,000 transactions per second (TPS), which helps fix scalability problems other networks face.
Overview of XinFin (XDC) Token
XDC is the token for the native cryptocurrency of the XinFin network. It is used for transaction fees and as the financing mechanism for the XinFin ecosystem to function properly.
The token is used to build apps and interact with smart contracts; it functions as the reserve currency of the network as well.
The XDC token is a crucial element of the XinFin ecosystem network for:
- Funding the further development of the XinFin network and its ecosystem (XinFin scan, XinFin master, XinFin web wallet)
- Incentivizing future building of the XinFin network engine/ecosystem
- Acting as a decentralized governance tool for the XinFin network
According to data from CoinMarketCap.com, the current circulating supply of the XDC token is 12.31 billion XDC tokens with a maximum supply of 37.7 billion XDC tokens.
The price of the token has a recent low of $0.029 from a high of $0.17 in August of 2021.
XinFin's delegated proof-of-stake (DPoS) consensus is handled by a consortium of 108 Masternodes. Masternodes create, verify and validate new blocks in the XinFin platform in a democratic way.
To run a Masternode on the XinFin network, Masternode candidates must first deposit 10,000,000 XDC tokens. After they are approved to run a Masternode on the XinFin blockchain, they can get their node running so it will begin to accrue rewards each epoch for participating in consensus.
Why do People use XDC?
A few potential use cases for XDC include:
- Banking
- Global trade and supply chain
- Commerce and digital payments
- Tokenized assets/ownership
Tokenized assets are a key focus for the XinFin team to drive adoption forward. It seeks to make this a reality through the use of non-fungible tokens (NFTs) to tokenize trade finance assets.
NFTs are unique digital assets. Unlike a fungible asset like the U.S. dollar or a basic cryptocurrency, which can be exchanged for another identical asset, NFTs are not mutually interchangeable. They can’t be replaced by another identical item.
NFTs are digital assets that are stored on a blockchain. They are one-of-a-kind and cannot be replicated. NFTs can be used to represent anything unique. NFTs are often used to represent collectibles, artwork or other items with value that cannot be duplicated.
XinFin tokenized these trade finance assets in collaboration with TradeTeq. The assets were turned into NFTs via XinFin's blockchain, and now institutional investors can buy and sell tokens, which represent the value of a physical off-chain asset. This reimagining of NFT's use case gives the ability to fractionalize ownership of a physical asset. For example, with a commercial building, an entity could flexibly raise capital in new ways and give token holders legal entitlement to the asset.
Anything with value in the real world can be digitized on the blockchain via NFTs. Asset tokenization is a process whereby assets are converted into digital tokens. These tokens can then be bought and sold by investors, giving them legal entitlement to the asset or assets represented by the tokens.
Where to Buy XinFin (XDC) Token
Xinfin is still a relatively unheard of digital asset, but it can be found on a few popular exchanges. XDC has been listed on trading platforms like Kucoin, Gate.io and Huobi Global. Unfortunately, none of these exchanges are available to users located in the United States yet. . Verifying your identity on these exchanges is easy and requires your address, Social Security number and driver’s license. If this is not an option for you, then the exchange may not be available in your jurisdiction yet.
Proof of Stake (PoS) vs. Delegated Proof of Stake (DPoS)
In systems that use the proof-of-stake (PoS) consensus mechanism like Cardano, the network’s native cryptocurrency serves as the scarce resource that makes becoming a transaction validator difficult. This is where the security of PoS blockchains comes from.
A node will lock up (stake) a large portion of the network's native token as collateral to its record of information, and if a bad actor inserts invalid information then their locked up assets will be significantly reduced or slashed.
Therefore, a malicious node operator would need to spend an exorbitant amount of funds to attack the network. There is little computation required to do the validating, so the cost of validating transactions is cheap in PoS distributed ledger technology (DLT).
On the other hand, Xinfin's network uses delegated proof-of-stake (DPoS) to achieve consensus, which is much different than normal PoS.
Operators on XinFin's (XDC) Public DPoS Consensus algorithm must adhere to Know Your Customer (KYC) regulations on the Masternodes themselves.
This method solves significant problems with traditional enterprise KYC providers and businesses that want to enter the blockchain space but are hesitant to violate rules and regulations.
The consensus's KYC feature enables corporate clients of the XinFin network to construct and govern their own identity by uploading all necessary details and documentation.
XinFin hopes this KYC feature for consensus will add an industry standard that is friendly to enterprises and regulators alike.
The 108 Masternodes on the network are responsible for consensus and block creation. The Masternodes create blocks to be added to the chain in a round-robin manner, and when a block is finalized 3/4 of the Masternodes must sign off on it to add it to the chain.
How to Store XinFin Safely
XDC does not offer Ledger support at the moment, but XinFin's homepage offers two wallets to store your XDC off exchanges.
The XinFin web wallet and the Guarda wallet are the two current options available. XinFin's web wallet can be accessed through a Google search or downloaded on the Android Store, while Guarda is a software wallet that can be downloaded on the Apple Store or Google Play Store.
If you are interacting with software wallets, then it is wise to write down your secret recovery phrase on a sheet of paper and store it somewhere safe offline.
Key Takeaways for XinFin
XinFin is an interoperable blockchain network for global trade and finance that enables digitization, tokenization and instant settlement of trade transactions.
Using it increases efficiency and reduces reliance on complex FX infrastructures, allowing for increased flexibility in liquidity management for financial institutions.
- Exclusive Crypto Airdrops
- Altcoin of the Week
- Insider Interviews
- News & Show Highlights
- Completely FREE