XDC Network: Definition, How it Works, and ISO 20022 Standard

Bittime - XDC Network is present as one of the advanced solutions that offers hybrid blockchain technology designed to meet the needs of the global financial sector. Learn the meaning, how it works, and the ISO 20022 standards it uses here.

With fast transaction capabilities and almost zero gas fees, XDC Network brings new innovation to the world of decentralization. This will attract the interest of developers, from various industries, such as finance, trade and supply chain. 

This article will take an in-depth look at the XDC Network, how it works, and the important role the ISO 20022 standard plays in supporting its interoperability.

What is XDC Network?

Source: tangem

XDC Network is an open blockchain designed for the enterprise world with a focus on tokenization and decentralization of the financial sector. Built by XinFin, XDC Network combines the power of public and private blockchain technology through a hybrid architecture. 

XDC Network supports high-speed transactions, low fees, and efficient consensus through the Delegated Proof of Stake (XDPoS) mechanism. This ensures that the network can handle more than 2,000 transactions per second (TPS).

XDC Network is also designed for compatibility with Ethereum, allowing developers to easily transfer smart contracts from Ethereum to XDC without many changes. The network is suitable for decentralized finance (DeFi) applications, international trading, and more.

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How Does XDC Network Work?

XDC Network operates using Delegated Proof of Stake (XDPoS) consensus. Where, validators function to verify and confirm transactions in the network. 

XDPoS is a consensus mechanism that combines several elements of Proof of Work (PoW) and Proof of Stake (PoS) to achieve fast and efficient consensus. 

In this way, XDC Network reduces the energy consumption typically associated with PoW networks, such as Bitcoin, while maintaining transaction integrity and security.

This consensus process is carried out with the help of validators who are selected through real-time voting by XDC coin holders. 

Each validator has the task of ensuring that the transactions carried out are valid and validating blocks of transactions for inclusion in the blockchain ledger.

ISO 20022 standard on XDC Network

One of the interesting features of XDC Network is the adoption of the ISO 20022 standard. This is a global standard for the communication of financial messages between financial institutions. 

By adopting ISO 20022, XDC Network ensures its compatibility with traditional financial systems. This is like SWIFT, which is widely used by banks and financial institutions. 

This standard enables XDC Network to facilitate faster, safer, and more efficient transactions. The standard also supports interoperability between blockchain and existing financial systems.

ISO 20022 also opens the door to the application of XDC in a variety of real-world applications, such as cross-border payment systems, supply chain management, and tokenization of real assets such as property and commodities.

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About XDC Coin

XDC is the native coin of the XDC Network which is used for various functions within the network. These include transaction payments, smart contract execution, and staking on masternodes. 

The distribution of XDC coins has a fairly clear structure, which supports the XDC Network ecosystem as well as the further development of the community and the network itself.

XDC Coin Distribution:

• 40% for founders and core teams
• 27% for ecosystem development
• 27% for initial placement (pre-placement)
• 6% for XDC Foundation cash reserves

XDC coins are also used in staking mechanisms, where coin holders can stake their XDC to earn rewards from the network as part of blockchain consensus and security.

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Conclusion

XDC Network is an example of a blockchain that is able to overcome major challenges in the world of global finance. With a hybrid architecture that supports high interoperability and ISO 20022 standards, XDC offers a suitable solution for developers. 

Apart from that, this network can also be a solution for various industries, including banking and international trade. 

With the cost and time efficiencies offered, as well as the well-structured distribution of XDC coins, XDC Network is ready to bring a revolution in the world of decentralization, offering the speed and security required in today's digital era.

FAQ

1. What is XDC Network?

XDC Network is a hybrid blockchain designed for the enterprise sector, with a focus on tokenization and decentralized finance (DeFi) applications. The network offers fast transactions and low fees with XDPoS consensus.

2. What are the advantages of using XDC Network?

XDC Network offers fast transactions (over 2,000 TPS), low gas fees, and compatibility with Ethereum, allowing developers to migrate applications without many changes.

3. What is the ISO 20022 standard and how does it relate to XDC?

ISO 20022 is a global financial messaging standard that enables XDC Network to interact with traditional financial systems, facilitating faster and more secure transactions between financial institutions.

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Reference 

Tangem, What Is XDC Network? Everything You Need to Know About $XDC, accessed January 14, 2025.

XDC, XDC.org, accessed on January 14, 2025.

Author: Y