XDC Blockchain vs Binance Chain: A Point-to-Point Comparison

Coin Price, as per CoinMarketCap on February 25, 2021.

General Comparison

Developed by eXchange inFinite (XinFin) in 2019, the XDC Blockchain is an enterprise-ready, public-private hybrid ecosystem. To ensure optimum security, XDC’s decentralized network implements double-validation and node randomization, among other factors. The Binance Chain, on the other hand, is a centralized network developed and governed by Binance, and was launched in 2017.

Blockchain Network Type

As already mentioned, XinFin’s network is decentralized, while Binance’s is centralized. In the greater scheme of things, this is greatly significant, and thus, demands elaboration. In XinFin, around 95% of all nodes are run by the globally-distributed users’ community, while Binance runs most of its network’s major nodes.

Coin Burning

Coin burning is the process of taking digital currencies out of circulation, primarily by sending them to inaccessible, yet auditable, addresses. In general, it serves several purposes — moderating the token’s price, tackling inflation, and over time, making the network robust and agile.

Consensus Mechanism

To eliminate the need for centralized authority and governance, blockchain networks adopt algorithmic consensus mechanisms. These secure the network by enabling a tamper-proof means of validating transactions and creating new blocks. Contrary to resource-intensive and non-scalable Proof-of-Work (PoW), several progressive blockchains implement the Proof-of-Stake (PoS) consensus mechanism. In short, this method requires users to stake their tokens in special wallets in return for voting rights.

Minting & Staking

As manifested in its adoption of a resource-optimized consensus mechanism, XinFin prioritizes ecological sustainability. The XDC token is an environmentally-aware Green Coin, striving to minimize energy wastage. Therefore, it is pre-mined or pre-minted, thereby consuming minimal energy, as low as simple word processors. Binance, however, has no such commitments, meaning that there’s no energy-optimizing approach for its network, apart from the PoS consensus mechanism.

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