Environmental Friendly Blockchain Networks, XDC Network Vs. Ethereum - ETH 2.0 Explained.

XDC Network is more environmentally sustainable in the blockchain, and its transactions are still LESS expensive than ETH 2.0

This post compares Ethereum, the second-largest blockchain network, to XinFin — XDC Network, the Third Generation Blockchain Network.

The Beacon Chain and the original Ethereum Mainnet have merged to form a single proof-of-stake chain known as The Merge. The Merge is the name of the transition from the original proof-of-work system to proof-of-stake. It decreased the energy use of Ethereum by 99.95%, but NOT any less than the XDC Network.

There is just Ethereum now that “Eth1” and “Eth2” have been combined into a single chain, eliminating the need to distinguish between the two Ethereum networks.

The community has changed these terminologies to avoid ambiguity:

The “execution layer,” currently called “Eth1,” is in charge of transactions and execution.

The “consensus layer,” which manages proof-of-stake consensus, is now called “Eth2.”

Let’s check out, Why Proof of Stake is greener than Proof of Work?

Proof-of-work is a reliable method of network security. In the past, the Ethereum blockchain’s transactions were verified by miners using the proof-of-work algorithm. Miners collected transactions and posted them to the Ethereum blockchain as ordered blocks. All other node operators received the new blocks once broadcast and independently performed the transactions to confirm their validity.

Validators are used in Proof-of-Stake instead of miners. As a replacement for Proof-of-work (POW), the initial consensus technique used to verify a blockchain and add new blocks, Proof-of-stake (POS) was developed. Validators perform the same function as miners, except that instead of expending their assets up-front as energy expenditure, they stake Crypto Tokens as collateral against dishonest behavior. These staked Tokens can be destroyed if the validator misbehaves, with more severe penalties for more nefarious actions.

These staked Tokens can be destroyed if the validator misbehaves, with more severe penalties for more nefarious actions.

XinFin XDPoS is an innovative solution to the scalability problem of the Ethereum blockchain and other current blockchain platforms. XinFin XDPoS relies on a system of 108 Masternodes with XDPoS consensus that can support low transaction fees and 2-second transaction confirmation times. Security, stability, and chain finality are guaranteed via novel techniques such as double validation, staking via smart contracts, and true randomization processes.

XinFin XDPoS support all EVM-compatible smart contracts, protocols, and atomic cross-chain token transfers. To continually improve the XinFin XDPoS Masternode architecture, new scaling strategies like sharding, EVM parallelization, private-chain generation, and hardware integration will be actively investigated. It will be the perfect scalable smart-contract public blockchain for decentralized apps, token issuances, and token integrations for small and large organizations.

XDPoS Consensus Solving 4 major problems of Public Blockchain Network

• XDPoS Consensus reduces energy consumption by 1/10 compared to bitcoin or Ethereum-based PoW Mining energy requirements.
• Near to zero transaction (Gas) fees to the customer. creates feasibility to run micro-transactions on blockchain networks.
• Self KYC-based Node solving problem of anonymous network members issue.
• Solving the Scalability Problem of Low numbers of Transactions by Higher Transaction Per Second.

General Comparison
The Ethereum network has a total supply of 122,373,863 ETH with a present market capitalization of $183,337,619,169 while XinFin has 37,705,012,699 XDC total supply and a market value of $384,650,311.



Let’s talk about transaction costs; ETH 2.0 & XDC still has notable differences.
Here, let’s check Fees Comparison.



ETH Transaction: https://etherscan.io/tx/0xf77cccf666e4d36d2f6a6b7348058d950b583baee3f86381a2074957bf3bef2a


XDC Transaction: https://xdc.blocksscan.io/txs/0x6d73db16c7418b8beb70d8baf9947983650e1aeb6ead753cd402f2f510ccbe10


Conclusion

“The merger will result in a 0.2% reduction in global electricity usage.” The energy use of the Ethereum Merge is lowered by 99.95%, but NOT by less than the XDC Network.

Consumption by XDC Network is 0.0000074 TWh or nearly 99.99%. XDC Network is more environmentally sustainable in the blockchain, and its transactions are still LESS expensive than ETH 2.0

Apart from a regular DPoS consensus mechanism, it comes with KYC enforcement on the nodes themselves, This can make it easier for corporate XinFin blockchain members to establish and maintain their own identities while also enabling users to see KYC information.

Staking on the Ethereum Network(ETH 2.0) has been functional for one month, but the XDPoS-based XDC Network has been reliable for four years.

Double Validation - XDC Report 6

Explore what single validation is. The most Proof of Stake blockchains use today, & understand why double validation is a superior alternative.

Watch the 6th video of $XDC Report, the latest news & updates in XDC engineering, research, & development:

Ethereum scaling solution XDC Network presents XDPOS2.0, an enhanced consensus for scalability and forensics.



The Ethereum blockchain’s and other top blockchain platforms’ scalability issues have an inventive answer in the form of the XDC Network. The 108 Masternodes that make up the XinFin Delegated Proof of Stake (XDPoS) consensus architecture that powers the XDC Network enable cheap transaction fees and 2-second transaction confirmation speeds. Innovative methods, such as double validation, staking via smart contracts, and simple randomization procedures, ensure security, stability, and a trustless ledger.

With its practical and secure consensus protocol, XDC Network addresses the traditional blockchains’ primary bottlenecks. Hence, XDC Network is a trustworthy Ethereum-compatible and Ethereum-competitive blockchain platform that offers a foundation layer for business blockchain applications and a strong ground for blockchain innovation at all levels.

A novel consensus engine developed exclusively for XDC, XDPoS 2.0, has been released in testnet. With a full year of beta testing necessary before the new protocol is scheduled to be implemented in the first quarter of 2023, XDPoS 2.0 is viewed as a significant milestone and by far the most complex upgrade since the XDC Network’s inception.

Read more: https://www.newsbtc.com/news/company/ethereum-scaling-solution-xdc-network-presents-xdpos2-0-an-enhanced-consensus-for-scalability-and-forensics/

Cryptocurrency and blockchain have already made their way into the books of many small and big companies. They have evolved from being some form of dubious technologies to becoming the next-generation tech that are key to driving the next industrial revolution.

Both cryptos and blockchains offer promising use cases to finance, supply chain, internet security, cloud storage, and a number of other sectors.

But when we discuss any technology for the future, sustainability is a crucial factor. We are at the tipping point of environmental damage and a technology that threatens the remaining balance in our ecosystem can prove devastating in the long run.

As is the case with most cryptocurrencies and fiat currencies today, they do not fit the mold of a sustainable future solution for money. While fiat currencies are a threat because they are paper-based, cryptocurrencies may have lethal consequences for our environment due to their extensive energy consumption.

The Bitcoin network alone consumes almost 0.21% of the world’s total energy supply, which is equivalent to 57.3 terawatt-hours. To put that into perspective, this equals the annual energy consumption of Switzerland. Ethereum network, on the other hand, consumes more than 7.8 terawatt-hours of electricity, which makes Ether the second most energy-intensive blockchain network and cryptocurrency. Recently, Bill Gates also raised concern on climate change and its effect on the environment in his Blog he says “To understand the kind of damage that climate change will inflict, look at COVID-19 and spread the pain out over a much longer period.”

So, why do most cryptocurrencies consume such huge amounts of energy? The answer lies in the underlying consensus protocol.

Proof-of-Work

Proof-of-Work or PoW is an algorithm that a decentralized network uses to settle transactions on a blockchain network. Cryptocurrencies such as Bitcoin and Ether employ the PoW consensus algorithm to create new coins and also distribute the coins across the network.

In the PoW algorithm, blockchain nodes called miners from across the world use high-end computing hardware to solve cryptographic puzzles to approve transactions and mine new coins. Each blockchain node competes against all other nodes to be the first to generate the hash that is the solution for the puzzle. As they solve the puzzle and approve transactions, they mine a new block on the network and also create new crypto coins. The winning node gets to claim the new coin that mined on the network.

Earlier, it was possible to mine Bitcoin using the RAM of a personal computer. With time, however, the mining difficulty on the Bitcoin network has increased multifold. Today, we have application-specific integrated circuit (ASIC) devices developed for the sole purpose of mining Bitcoin and other PoW-based cryptocurrencies. Each of these devices can have an environmental cost of up to $1,500 per year. (Source)

It is expected the energy demand of these PoW networks will keep growing as the networks grow in size and more blocks and transactions are added to them.

Read more in detail: xdc.dev/vinn_v_9686/the-environmental-impact-cryptocurrency-mining-vs-xdpos-consensus-535p

Smart contracts are a great invention. By automating different processes and transactions on the blockchain, they have made blockchains more efficient. They can largely impact businesses by saving time and cost of executing various forms of transactions.

There are hardly any industries across the globe that can remain untouched by the innovation that smart contracts have brought. Smart contracts not only cut short the need for any intermediaries but they also make transactions more secure and resistant to frauds. All this is possible because they replace the human trust model with computer codes that cannot be altered in any way.

Various industries such as finance and banking, supply chain, real estate, gaming, medical and healthcare have started relying on blockchain for smoother functioning of their system.

Despite the tremendous use cases of smart contracts, today’s businesses fail to implement smart contracts for two reasons: lack of professional smart contracts developer who can create a tailor-made smart contract for a particular requirement; the inability to link smart contracts with external data because smart contracts only understand data stored on a blockchain.

However, in this fast-paced world, it hardly takes time to develop a solution for every problem that comes through. MyContract is a smart contract platform that helps businesses easily set up smart contracts for their business and link it to their already existing systems.

What is MyContract

MyContract.co is a smart contracts creation platform that aims to bridge the gap between the business world and blockchain and smart contracts. It helps businesses create and deploy smart contracts without writing a single line of code.

Developed by the team at XinFin Network, which is a hybrid blockchain for global trade and finance, the platform through smart contracts deployment aims to help small and large businesses “exchange money, property, shares or anything of value in a transparent, conflict-free way without the intervention of a middle party.”

The different smart contracts platforms so far made available to businesses still required them to take help from professional developers to create smart contracts. However, MyContract aims to make smart contracts creation a matter of a few simple steps: medium.com/xinfin/a-step-by-step-guide-to-issue-your-own-token-on-xinfin-network-in-a-few-minutes-b03aeae3be69.

Since its inception, MyContract has so far added to its valuation and currently sits atop a net worth of 1.7 million dollars, with each of its native tokens, XDCE, valued at $0.00044 at the time of writing(1st July 2019). The lower price of the token results in a lower cost for deploying smart contracts on MyContract.

This brings us to our second major issue for businesses to implement smart contracts, which is the inability of smart contracts to extract and read data from real-world applications.

There are tools, however, that make up for this shortcoming of smart contracts. These are known as Oracles. Oracles, in short, bridge the gap between blockchain smart contracts and real-life software applications.


Why do we Need Oracles?

The general forms of smart contracts are efficient readers of data that is transmitted on to a blockchain. But they fail to comprehend any data input that might be directly fed to them through a real-world application. More precisely, blockchain nodes that execute the smart contract codes are unable to access and read data from outside applications on their own.

To settle this case, Oracles act as the intermediary smart contracts that take data input from a non-blockchain application, store it on the blockchain, and push it forward to a blockchain smart contract for the further usage.

Most of the data available today are stored on the conventional storage systems. This renders smart contracts’ incapable of reading a major chunk of today’s available data, which in turn cuts off blockchain and everything related to it from a huge portion of the world.

Thankfully, Oracles bridge this large gap through their features.

Chainlink: The Most Widely Known Oracle

Chainlink is an Oracle sidearm of SmartContract.com. It garnered most of the attention during the bearish crypto markets. As bitcoin, ether, litecoin and all other major cryptos lost their value, LINK token of Chainlink gained over 100 percent in total valuation.

Chainlink is a decentralized network of Chainlink nodes that are helping smart contracts be directly fed with data feeds, and rendering them off-chain payment capabilities. It has an on-chain and an off-chain section that coordinate with each other to make the data transfer to smart contracts possible. The network has been created such as to have enough room for any changes that may be required in the coming times due to technological developments

Currently, the company stands at a total valuation of 1.2 billion dollars, with each LINK token valued at $3.47 at the time of writing(1st July 2019).

Conclusion

Smart contract is a powerful technology. And it has indeed created unprecedented hype in the technological landscape due to its huge potential. Given how easy it is to now create and deploy smart contracts, it is the perfect time for businesses to start working on its implementation to and reap maximum benefits in the times to come.