Wigwam is the best XDC Network blockchain crypto wallet

XDC Network review

XDC Network is an open-source, enterprise-grade, hybrid solution that contains features of both private and public blockchains. Due to this feature, it's well suited for international trade and finance.

Origins & Vision

The XDC Network was founded in 2017, and its native token XDC was also launched with it as an integral part of the ecosystem. XDC Network was already ahead of the competition as it was utilizing XDPoS as its consensus mechanism, in 2021 XDC Network upgraded it to XDPoS 2.0 protocol with its Andromeda XDPoS. After, the blockchain team launched the Pitstop Protocol in 2023 to help developers build applications in their ecosystem. AtomiK, the first DEX to perform cross-chain atomic swaps using ZK technology, was launched on XDC in the same year, ensuring secure bridging between the Aleo and XDC (EVM compatible) blockchains. To promote and attract more artists and collectors to its platform, XDC Network launched Sniffer, which provides live alerts on listed NFTs and offers an automatic purchase feature to secure preferred NFTs at suitable prices. 

XDC Consensus Algorithm explanation

Unlike other blockchains, XDC Network is a hybrid blockchain, it is both public and private, hence it utilizes the XDC Delegated Proof-of-Stake(XDPoS) consensus mechanism that offers fast and secure transactions. Its enterprise readiness is elevated by nominators adhering to self-KYC requirements, fostering regulatory compliance.

In the XDPoS mechanism, Validators stake their coins, and coin holders (Nominators) vote on the validators. The validators with the most votes get selected for validating transactions and adding blocks. Validators are rewarded for finalizing a transaction and Nominators get a percentage of that reward.

To prevent malicious behavior XDPoS features transactions with dual signatures for verification and utilizes off-chain and on-chain methods for detecting and penalizing misbehaviors. Validators can report malicious KYC certifications which leads to slashing if agreed upon by the majority.

How XDC Network Technically Solved Problems with Scalability, Decentralization, and Speed.

XDC Network’s XDPoS (Delegated Proof of Stake) consensus mechanism lets a limited number of elected validators process transactions and add blocks, this way it improves the transaction speed to 2000 tps and scalability of its ecosystem. This mechanism system also promotes other coin holders to vote and select their delegate validators which leads to the network being decentralized. 

Who are the Main Players in the XDC Network Blockchain

The following two are the main players and roles in the XDC Network blockchain. 

1. Validator: It is responsible for validating transactions and producing blocks, the validators are required to pay the register fee and complete the identity verification (KYC) before they can participate in the network. In XDC, a validator has to wait two epochs after staking to become eligible. 
2. Nominator: It is a coin holder who delegates their coins to a validator, and earns a percentage of the reward. 

DeFi Ecosystem on XDC Network

The public-private hybrid model and EVM compatibility of XDC Network have attracted many enterprises to either build applications on top of XDC Network or deploy XDC Network tech architecture in their existing systems. XDC Network has many projects like “XSWAP” the first decentralized exchange that utilizes an automated market maker (AMM) system on XDC Network, “Atomik” the first DEX to perform cross-chain atomic swaps using ZK technology, ensuring secure bridging between the Aleo and XDC (EVM compatible) blockchains and “TradeTrust” which utilizes XDC Network for helping enterprises and banks by providing a common platform for exchanging and verifying documents.

XDC Network recently updated its DeFi ecosystem with integrations like the Compliance Technology From Securrency and Fathom protocol, a sustainable borrow-and-earn platform.  

NFTs Marketplaces on XDC Network

XDC Network attracts many artists and collectors to its various NFT markets, “XDSea” is one of the famous NFT marketplaces on XDC Network. NFTs in XDC Network are bound to expand more as XDC’s EVM compatibility and its various comprehensive solutions like ‘Sniffer’ and ‘NFTs (No Fear NFTs)’ that are working to make the NFTs on XDC Network more scalable, decentralized and accessible. Install the Wigwam NFT wallet to join the XDC NFT ecosystem.

Tokenomics and Gas Usage on XDC

XDC, the native token of XDC Network, has several utilities as discussed below: 

1. Transaction Fee: The users transacting in the XDC network are required to pay the
2. transaction fee in XDC.
3. Staking: The Validators and Nominators stake the XDC tokens, contribute
4. to the network’s security, and earn rewards as XDC tokens for their contributions.
5. Governance: XDC tokens also serve as the exclusive governance voting token, enabling community-driven decisions. 

Conclusion

XDC Network is a third-generation blockchain, with the combined features of private and public blockchain. XDC utilizes the upgraded version of Proof-of-Stake(PoS), called Delegated Proof of Stake (XDPoS), and its various upgrades that show XDC Network is here to change the way we deal with Enterprises and international trades.