Assessing the XDC Network: A Comprehensive Evaluation of its qualitative and technical aspects
Atul Khekade, Omkar Mestry, Van Khanh Nguyen
TL;DR
The paper evaluates the XDC Network on technical, security, and business dimensions using a structured framework across Network, Developer Ecosystem, and Business. It leverages data from XDC Nodes, XDC Ecosystem Developer Report, GitHub, and XDCScan to quantify decentralization, participation, ecosystem maturity, and cost dynamics. Key findings include a Nakamoto Coefficient of $\left\lfloor \frac{2}{3} \times 108 \right\rfloor = 72$ and ~95.6% validator participation, with geographic concentration in Germany and Singapore and OS/version homogeneity considerations. On the business side, gas price volatility and rising transaction costs are observed, with cumulative fees reaching ~177,858 XDC by mid-2024, highlighting areas for stabilization to support broader adoption.
Abstract
This research provides a thorough assessment of the XDC Network, a delegated proof of stake (XDPoS) consensus-based blockchain technology, across its technical, security, and business dimensions. The study evaluates the network's decentralization, scalability, and security features, including its Nakamoto coefficient, validator participation, and client distribution. Additionally, it examines the developer ecosystem, including GitHub metrics, and business aspects such as transaction costs and predictability. The findings of this research will provide valuable insights into the strengths and weaknesses of the XDC Network, informing stakeholders and decision-makers about its suitability for various use cases, particularly in trade finance, asset tokenization, and enterprise blockchain solutions.