XDC Network

What Is XDC Network (XDC)?

The XDC Network is a blockchain developed to support trade finance and the tokenization of real-world assets (RWAs). An EVM-compatible blockchain, XDC Network utilizes a state-of-the-art Delegated Proof of Stake (DPoS) consensus engine to provide high-level security, fast transaction times and improved scalability. The network features a Layer-2 subnet system allowing users to launch sovereign and privacy-preserving side chains that inherit the security of the XDC mainnet. This system makes XDC Network uniquely equipped to support those who require dedicated blockchain environments for enhanced permissions and control, such as government agencies, financial institutions, and businesses.

As of Jan 6, 2025, there are 300+ XDC Network validator masternode candidates, of which 108 actively operate as validator masternodes, and the remainder operate as standby masternodes. Each masternode operator is required to stake 10M XDC.

In Q4 2024, the XDC mainnet successfully upgraded to XDC 2.0. XDC 2.0 incorporates the theoretical maximum Byzantine fault tolerance security and novel forensics monitoring system into the consensus mechanism. Developed by an expert protocol team led by Professor Pramod Viswanath from Princeton University, XDC 2.0’s cutting-edge compliance technology ensures unprecedented Byzantine fault tolerance (BFT) by holding validators accountable for their actions on an automated yet discretionary basis.

Who Are the Founders of XDC Network?

XinFin, a Singapore-based fintech company providing enterprise-grade blockchain solutions for international trade and finance, was established in 2017 by Ritesh Kakkad and Atul Khekade. XinFin launched the XDC Network. The XDC mainnet went live in 2019.

Kakkad is a serial tech entrepreneur with decades of experience in cloud computing. Khekade, a computer engineer by training, played the leading role at MonetaGo in creating the first permissioned blockchain network for a consortium of the most prominent Indian banks.

Kakkad and Khekade set out to build an enterprise-ready blockchain uniquely suited to liquifying global trade finance. With that overarching goal in mind, they engaged André Casterman, who, after spending 20+ years at SWIFT, now serves in a prominent leadership role for the XDC Network and drives innovation by shepherding various network use cases across traditional finance.

What Makes XDC Network (XDC) Unique?

The XDC Network sets itself apart through its community of participants who make ongoing contributions to its position within the Real World Assets (RWA) and Trade Finance industries.

Notably, XDC Network was the first and only blockchain invited to join the Trade Finance Distribution Initiative(TFDi), a consortium of the world's leading banks and non-bank financial institutions established to bridge the $5 trillion trade finance gap. It was also invited to join the ITFA's Digital Negotiable Instruments Initiative(DNI). Tradeteq was responsible for the world's first trade finance-based non-fungible token(NFT) issuance on the XDC Network in late 2021. In 2023, through the efforts of Tradeteq and Securitize, the XDC Network rolled out its first compliant U.S. Treasury token, USTY, representing blockchain-based versions of shares in a U.S. Treasury bond exchange-traded fund (ETF).

Additional contributions of note include those of SBI Holdings, which entered into a joint venture with TradeFinex, an institutional grade ISO20022 compliant non-custodial protocol for Trade Finance, to expand XDC Network use cases in global economic activities, particularly in trade finance and cross-border payments. TradeTrust, a platform developed by the IMDA in Singapore, also leverages the XDC Network to bring advanced document authentication through a framework that complies with the Model Law on Electronic Transferable Records (MLETR) to enhance the security, transparency, and efficiency of cross-border transactions.

Going forward, XDC Network is positioned to support a suite of RWA products that will make trade finance assets widely accessible to capital markets while enabling finance-starved MSMEs to access the financing they need.

Various teams supporting and utilizing the XDC Network posit that trade finance is the definitive use case for blockchain technology and that public blockchain networks, like the XDC Network, are the vehicle for industry transformation.

Related Pages:

What is delegated Proof-of-Stake (dPoS)? Brush up on crypto terms with the CMC glossary.

What is XinFin? Take a deep dive with CMC Alexandria.