What is XinFin? – Financial Trends

The hybrid nature of XinFin means that it can switch between (public) and unauthorized (private) blockchains. Bitcoin It is a good example of a public blockchain without permission where anyone can interact with the ledger. Private blockchains with permissions are typically used by companies that want to keep their data private. An example is Korda.

XinFin aims to develop a network that takes advantage of the best private and public blockchains to allow users of the network to customize it according to the needs of their industry. XinFin also prides itself on being a fast blockchain with around 2,000 transactions per second (TPS), which helps solve scalability issues other networks face.

XinFin Token (XDC) Overview

XDC is the original crypto token of the XinFin network. It is used for transaction fees and as a funding mechanism for the XinFin ecosystem to function properly. The token is used to create applications and interact with smart contracts; It also acts as a network backup.

The XDC token is a critical component of the XinFin ecosystem network to:

  • Funding for the further development of the XinFin network and ecosystem (XinFin-Scan, XinFin-Master and XinFin-Web-Wallet)
  • Incentives for the future construction of the XinFin ecosystem/network
  • Acting as a decentralized governance tool for XinFin

According to CoinMarketCap.com, the current supply of XDC tokens is 12.31 billion XDC tokens with a maximum supply of 37.7 billion XDC tokens. The coin’s price recently dropped to $0.029 after hitting a high of $0.17 in August 2021.

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The XinFin Delegated Proof of Stake (DPoS) consensus is powered by a consortium of 108 major tokens. Masternodes democratically create, validate and validate new blocks on the XinFin platform. To run a master token on the XinFin network, master token candidates must first deposit 10,000,000 XDC tokens. After obtaining approval to run a masternode on the XinFin blockchain, they can launch their own node so that the rewards for participating in the consensus accrue in each era.

Why do people use XDC?

Some of the possible use cases for XDC are:

  • Banking Services
  • Global trade and supply chain trade
  • digital payments
  • Tokenized assets/property

Tokenized assets are a major focus of the XinFin team to drive adoption. This should be achieved through the use of non-fungible tokens (NFTs) to tokenize trade finance assets. NFTs are unique digital assets. Unlike exchangeable assets such as the US dollar or a simple cryptocurrency, which can be exchanged for another similar asset, NFTs are not exchangeable. It cannot be replaced with another similar item.

NFTs are digital assets stored on the blockchain. It is unique and cannot be replicated. NFTs can be used to represent something unique. NFTs are often used to represent collectibles, artwork, or other items of value that cannot be replicated. XinFin has tokenized these trade finance assets in partnership with TradeTeq. The assets were transferred to NFTs via the XinFin blockchain, and now institutional investors can buy and sell tokens that represent the value of physical assets outside the blockchain. Reinterpreting the use case of NFT provides the opportunity to segment ownership of physical assets. For example, a company with a commercial building can flexibly raise capital in new ways, giving token holders legal title to the asset.

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Anything of real-world value can be digitized via NFTs on the blockchain. Asset tokenization is the process of converting assets into digital tokens. These tokens can then be bought and sold by investors, giving them legal ownership of the asset or assets that the tokens represent.

Proof of Stake (PoS) vs. Delegated Proof of Stake (DPoS)

In systems that use a Proof of Stake (PoS) consensus mechanism such as Cardano Using the network’s native cryptocurrency as a scarce resource makes becoming a transaction auditor difficult. Hence the security of PoS blockchains. A node locks (publishes) a large portion of the network token as security for its information history, and if a bad one inserts invalid information, its locked assets will be greatly reduced or cut off.

Therefore, a malicious node operator will have to spend a large amount of resources to attack the network. It requires few computations for validation, so the cost of validating transactions with PoS Distributed Ledger Technology (DLT) is low. On the other hand, the Xinfin network uses delegated Proof of Stake (DPoS) to achieve consensus, which is quite different from the regular PoS.

Compliance with ‘know your customer’ regulations

Operators of the public DPoS consensus algorithm XinFin (XDC) must comply with KYC (know your customer) regulations for the major tokens themselves. This method solves major problems with traditional KYC providers and companies that want to enter the blockchain space but are reluctant to break the rules and regulations. The KYC Compliance feature allows corporate clients of XinFin to create and manage their own identity by uploading all necessary details and documents.

XinFin hopes that its unanimous KYC feature will create an industry standard that is convenient for both businesses and regulators. The 108 masternodes in the network are responsible for consensus and block creation. Masternodes create blocks that are added to the chain based on rotation. When the block is complete, 3/4 of the master nodes must sign it to be added to the chain.

The main takeaway of XinFin

XinFin is an interoperable blockchain network for global commerce and finance that enables digitization, tokenization and instant settlement of commercial transactions. It increases efficiencies and reduces reliance on complex foreign exchange infrastructures, allowing financial institutions greater flexibility in managing liquidity.

This post first appeared on Benzinga:

What is XinFin?

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