XDC – Development Services

As blockchain technology has advanced, technology, numerous new platforms for decentralization have emerged today with distinct characteristics. It is therefore difficult to evaluate and determine which is the most suitable one to the requirements of the company. Selecting the most suitable blockchain protocol takes an extensive amount of analysis, research and comparison. A comparative analysis of blockchain platforms is essential to evaluate the many features they provide.

Blockchain technology was introduced in the early days. started with Bitcoin. Blockchain was used to perform the functions for the operation of Bitcoin was a simple distributed ledger system that could keep track of Bitcoin transactions. Bitcoin was a fundamental public chain, however over time Blockchain protocols developed, and today there are four main types of blockchain protocols.

Public blockchains

Private blockchains

Hybrid blockchains

Consortium blockchains

Blockchain technology, in its different forms, functions as an encrypted digital repository for information. It operates and is managed on the foundation of the consensus mechanisms that are distributed autonomous, decentralized, and decentralized network of computers. Through the use of blockchain networks transactions are secure through consensus mechanisms. For instance The horizontal Proof-of-History keeps record of transactions entirely, thus eradicating any fraudulent activity within the network.

With the rapid evolution and updates There are a variety of blockchains that have different capabilities such as transactions, microtransactions, cryptocurrency smart contracts DAO and dApps, scaling and governance, efficiency of tokenization and interoperability.

What are the various kinds of blockchains?

As startups and businesses are increasingly integrating blockchain technology into their systems, the technology is divided into four major types based on the applications:

Public blockchains

Public blockchains are open source blockchain networks. They permit everyone to be part of the network as developers, users as well as network members and miners. The public blockchains allow everyone to participate in the network as members, without restrictions. The transactions that are executed on the public blockchain are accessible and transparent to all participants in the network to examine the details of the transaction.

A blockchain that is public is decentralized, and has no central authority. It is extremely resistant to censorship as everyone is able to join the network according to their own preferences, regardless of their location or the country of origin. Thus, public blockchains will never be closed.

Private blockchain

Private blockchains are blockchains that have been granted permission. Anyone who wants to be a part of these systems. Transactions on the private blockchains is private in nature , and only accessible to members of the network who have permission to work within the blockchain’s private network.

These blockchains are crucial for businesses who collaborate and share data, however they don’t want to expose their sensitive information in processes that are carried out on a blockchain public. Private blockchains are more centralized in the sense that the different entities in the network operate the chain and have equal control over the various participants and the frameworks of governance.

Hybrid blockchain

A hybrid blockchain is an ecosystem that combines advantages of both an open and secure blockchain. This is the reason why the hybrid blockchain incorporates the privacy and security features of the private blockchain as well as an openness of public blockchain. This is why a hybrid Blockchain allows for the business’s flexibility by offering security and privacy to set up any information that is public in accordance with their needs.

The hybrid ecosystem can be created due to the patent-pending interchain feature. This feature lets the chain join with various blockchain-related protocols. Through a hybrid system creating an inter-chain network is feasible. Because they are able to operate multiple blockchains at the same time to improve the security of transactions, they make use of the hashpower that is combined by the public blockchains.

Consortium blockchain

The Consortium blockchains are also referred to as blockchains that are federated. They permit any new participant in the block to join to the existing structure and exchange information instead of starting at the beginning. With the assistance of blockchains in consortium, businesses easily have solutions to protect their time and reduce the cost of development.

Stable currencies are in high demand due to their ability to thrive in international transactions. Blockchain technology and cryptocurrency have been thoroughly researched by many people in various industries such as healthcare, fintech, logistics. Blockchain technology’s decentralized attributes and safety feature allow for seamless transaction regulation and smooth functioning across industries. Industry can use the diverse crypto networks to create stablecoins and reap the benefits of the Blockchain network’s features. Funds are used to access cryptocurrency by investors and traders. These funds, known as stablecoins or cryptocurrencies, are an important component of the Blockchain network.

What is a Stablecoin?

Stablecoins are a cryptocurrency whose price is linked to a tangible asset, such as gold, real estate or US dollars. To stabilize the price and prevent fraud in the cryptocurrency market, a stablecoin is associated with a tangible asset. While there are many cryptocurrency, Ether and Bitcoin have the disadvantages of fluctuating prices. A stablecoin has the advantage of having the currency’s value fixed against the asset. This eliminates the problem of price fluctuation.

Stablecoins (XDC Network) aims to fill the gap between the benefits offered by cryptocurrencies as well as the stability that Fiat currencies provide. Although cryptocurrencies can be used as global currencies, Ether and Bitcoin are not volatile. Bitcoin’s 2017 value increased from USD 1000 up to USD 20000. The stability of the currency is ruined by the periodic rises in its value, making it unsustainable. The trust in the ecosystem of currencies is maintained by decentralized currencies, which reduces the need for a central authority.

Different types Stablecoins

There are several types of stablecoins, as we have already mentioned:

Fiat-Backed

These stablecoins have their value backed up by the specific fiat currency. Fiat-Backed stablecoin tokens keep their value at a ratio 1:1. Tether, for example, is a stablecoin and has its value set at a ratio 1:1 to the USD. In order to ensure the existence a stablecoin that’s fiat-backed, a fiat money is disposed off as collateral. To dispose of a fiat money as collateral, the financial custodian needs to be present and regular auditing done in order for the token to be properly collateralized. For example, the Gemini stablecoin is (GUSDT).

Non-collateralized

Non-collateralized stabilizecoins are those that do not have collateralization. They are the ones that are based upon the fundamental of Seigniorage Shares. The difference between the printing cost and the money’s value is explained by Seigniorage. These coins are subject to the algorithm which alters the supply to regulate its price. These stablecoins are sold when the price is lower that the linked currency. If the value of these tokens is higher than the linked currencies, more tokens will go to the market.

Cryptocurrency-backed

The crypto-backed stable cryptocurrency works exactly the same as the legal currency stable currency. It prohibits the use crypto as collateral, instead of using fiat currencies. For example, Ethereum can be used as collateral to create cryptocurrency-backed stablecoins. These tokens make use of security compromises to offset volatility in the cryptocurrencies being used as collateral. It is clear that stablecoins are not dependent on an encrypted collateral ratio of 1:1.

Commodity-Collateralized

Other types of exchangeable assets like real estate and precious metals can back stablecoins that are backed up by commodities. Gold is one the most commonly guaranteed commodities. Commodity-backed steadycoins have tangible assets with a certain actual value. These commodities are able to appreciate over time, which can make them more appealing for people to use and save these coins. You can now invest in precious metals and real estate worldwide by using commodity-backed stablecoins. In general, such investments are reserved for the wealthy. Stablecoins offer investors the chance to invest in ordinary assets around the globe.

What is XDC Network and what are its benefits?

XDC Network is a hybrid, enterprise-grade blockchain. It is interoperable and has high liquidity. It relies on a Delegated Proof of Stake Consensus. The XDC platform is a hybrid architecture that allows developers and users to build interoperable dApps as well as hybrid relay bridges. XDC Network also allows digitization, tokenization and fast settlements of trade transactions. The hybrid blockchain system combines both the benefits of private and public blockchains. XDC Network, a blockchain that can revolutionize international trade, finance, and supply chain management is called XDC Network. It’s a next generation computing network that can use Blockchain technology to connect global businesses, communities, and individuals. The network runs on its own fuel, namely XDC. Transmitting data securely and transparently can be done by businesses using both private and public blockchain systems.

The XDC protocol can serve as a layer of confirmation and messaging for cross-border and national payments. Financial institutions will recognize XDC tokens for payment settlement. The XDC protocol architecture was designed to allow the use of existing cryptocurrency smart contract layers, the KYC /AML layer, as well as price stability. It supports Guarda wallets, and biometric physical wallets. XDC cryptocurrency is being advertised and investors believe that it can generate huge long-term profits.

Category: XDC

A COMPARISON OF VARIOUS BLOCKCHAIN PROTOCOLS