Blockchains have flooded the market with distinct features – each vying to be the best. While this has led to the cryptocurrency market being overcrowded with a lot of useless cryptocurrencies, there are also some hidden gems in the market. In this guide we will discuss the XDC token which powers the XinFin Network or eXchange inFinite. The network has been designed to rival the queen of the market – Ethereum – through its various interesting propositions. Although competition with the second largest cryptocurrency is not a piece of cake but the network does have a lot of features that may put things into perspective.
What is XDC?
XDC powers the XinFin Network which is a Delegated Proof of Stake Consensus network with hybrid capabilities. It is essentially an interoperable blockchain designed for the global trade and finance industry. The Network provides digitization, tokenization and settlement of trade transactions through the blockchain technology which boosts the efficiency of the market. The network provides more flexibility and easier liquidity management for financial institutions.
Is XDC better than Ethereum?
The XDC network regards itself as the third generation of blockchains as it combines the power of public and private blockchains with interoperable smart contracts. While Ethereum can process 12 to 16 transactions per second, XinFin Network allows capabilities for more than 2000 TPS. Transactions are confirmed in approximately 2 seconds on the blockchain with ETH takes 10 to 20 seconds. Moreover, the average fee is $0.00001 USD on XinFin while Ethereum charges $10 on average with the fee crossing $50 during peaks. The energy consumption of the XDC network is also much lower than most blockchains as it focuses on sustainability.
Future outlook
XDC Network is an enterprise-ready open-source protocol with the aim of increasing interoperability through smart contracts all the while focusing on environmental sustainability. Being an Ethereum competitor is not easy and XinFin has a long way to go to skirt even near the second largest cryptocurrency. Moreover, XinFin also operates within the specific niche of global trade and finance while Ethereum is a generalized blockchain.
That being said, this does not mean the XDC token does not have potential. XinFin Network has become the first blockchain company to join the Trade Finance Distribution Initiative – a global consortium of stakeholders of the trade industry. According to the estimates of Wallet Investor, the cryptocurrency is expected to climb upwards in the future. The five-year price projection places the token at $0.82.
