Recently, a cryptocurrency company known as Xinfin.org, has announced the launch of a new financial market under the name the XDC Network. But you may be wondering, what does the XDC Network do? And should you use it?
We will answer all those questions and more in this article, so keep reading to learn all about this week’s altcoin spotlight, the XDC Network.
What is the XDC Network?
XDC is a blockchain payment processor built on the same technology as Ethereum and is built to work with various aspects of the platform. It was designed to host smart contracts that act as payment processors for cryptocurrency companies (who are usually prohibited from using other payment processors like PayPal).
One of the most famous apps built on the platform is the payment processor XDCPay, which allows businesses and companies to pay people, or be paid, quickly and easily in a variety of cryptocurrencies. XDCPay is also a phone app that can be used for similar purposes to Venmo and CashApp.
How Does XDC Network Work?
Unlike other payment processing networks, XDC is a hybrid, meaning it is both a public and private blockchain. It uses a delegated proof-of-stake consensus mechanism to offer fast and secure transactions to users. It is also more energy efficient than other blockchains like Ethereum because of its delegation aspect.
As of the writing of this article, XDC can process 2,000 transactions per second, making it one of the faster payment processors available to Ethereum users. The average transaction time is just 5 seconds, making it a viable option for businesses and consumers alike.
The way the XDC network works is that someone who wishes to pay someone else must first transfer their currency to XDC coins (the native token of the network). These tokens can be sent via a smart contract to another address, and once they are there, they can be converted into the receiver’s token of choosing. The good news is, that much of this happens behind the scenes, and most users can simply make their selection and click a button, and their transaction is processed within seconds.
Financial institutions and developers can also create additional smart contracts that operate on the platform to suit their own individual needs.
To make things even easier, XDC has a web and mobile app that can be added to most popular browsers. This makes using the platform a breeze no matter what industry you are in.
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Who Created the XDC Network?
The XinFin XDC Network was created by a team of developers and professionals in the blockchain and finance sectors in Singapore. XinFin (short for "eXchange InFinite") is a blockchain technology company that was founded by Atul Khekade, Ritesh Kakkad, and Karan Bharadwaj.
The project's development and leadership have evolved over time, and it involves contributions from various individuals and organizations. While the initial concept and development were led by the founders, it's important to note that blockchain projects are typically collaborative efforts involving multiple contributors.
Therefore, there may be some additional individuals working on the project that we didn’t list here, and some of the original developers may no longer be working on the project.
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When Was the XCD Network Invented?
The XCD Network was created in 2017 and had its first ICO, or initial coin offering, the same year. It has since risen in popularity, becoming one of the top 50 coins (based on market volume) on CoinMarketCap.
Where Can You Buy XDC Network?
XDC, the native token of the XDC Network, can be purchased on several popular platforms. They are as follows:
These aren’t the only places XDC can be purchased, but they are the most popular.
Should You Buy XDC Network?
As a payment processor, XDC Network offers several options that may not be available to individuals on all blockchains. However, it’s important to note that because of its hybrid model, the XDC Network lacks some of the security features available on other blockchains.
First and foremost, XDC is both a private and public network. This means that there is a company overseeing it and that the future of the blockchain is tied to the company. If the company goes under, unlike other blockchain projects(Bitcoin), XDC is likely to go under as well.
Therefore, we recommend proceeding with caution when it comes to investing in XDC, as it isn’t as safe as other currencies that are run on a public blockchain. While it isn’t a scam, as we have seen over the past few years (FTX, Silicon Valley Bank, etc.), just because something is run by a legal company doesn’t mean it is risk-free. At any point, the company could go insolvent, closing its payment processor and app down—meaning you could still lose money.
Additionally, while XDC is fast, it isn’t as well-known or popular as other projects, meaning it might be a little harder to get a return on your investment. Especially when you consider that XDC is more of a store of value than an investment vehicle. Of course, if the company has a major innovation, your XDC investment will serve you well but know that this is never a given.
Especially when you consider that the company is based in Singapore, where the regulations for cryptocurrency can change at any time. While they are operating legally now, you can never be sure if this will remain to be the case in the future.
Overall, while we think it is okay to use the XDC payment processor from time to time for client or business purposes, we do recommend proceeding with caution with investing, as the company is truly in control of the future of your money, and the future is uncertain for the payment processor.
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