New project considered as next-generation Bitcoin or Ripple (XRP)

  • XDC token has been created as a new generation of Bitcoin or XRP, but with a more friendly approach to regulation according to Cordite CEO.
  • The supply of XDC may be increased by a vote of the Cordite Society members.

A new cryptocurrency has entered the ecosystem. Launched on October 20 on the Corda public blockchain, the XDC token has been created to be “a new generation of Bitcoin or XRP,” according to Cordite CEO Richard Crook. XDC is a project of the Cordite Society, a cooperative based in the United Kingdom.

The XRP digital asset is also supported by Corda. However, the XDC token seeks to mitigate some of the “failures” that the Cordite Society believes traditional cryptocurrencies have. Therefore, the XDC will be more “regulatory friendly”. A total of 1 million XDCs will be minted as part of the initial supply of the token.

XDC meets regulators’ demands

According to the report, the cooperative behind XDC will use the UK’s legal structure to introduce a DeFi sector into Corda’s distributed ledger. It will use a governance model and token distribution based on memberships to the Cordite Society. Any legal entity that operates a Corda node is a member of the cooperative.

Thus, users receive governance points and are part of the decisions around the XDC token. Each node of the Cordo network will be represented as a legal entity. The CEO of the Cordite Society indicated that this is a strategy that will allow the DeFi sector in Corda to function in accordance with the guidelines of the Financial Action Task Force (FATF). Crook added:

Regulators have set the requirements for what a digital currency needs to be, and that’s exactly where XDC fits in,” said Crook. “It meets the requirements of most jurisdictions as a digital currency and is therefore a step ahead. We’re a next-generation Bitcoin or XRP.

The XDC Whitepaper classifies it as the “first currency” of financial grade ready for enterprise level. In contrast to Bitcoin, XDC doesn’t have a fixed supply, to “improve the failures” the Whitepaper mentions. XDC’s supply can be increased over time if users vote for it. Any new XDCs that are minted will be distributed among the voting members using the Cordite node.

In addition, XDC has 4 specific objectives: to be a store of value, a medium of exchange, or a unit of account; to stimulate participation in the Corda community; to support the projects emerging in Corda, and to support the community and the developers of the network.

XDC is an Exchange Token as defined by the UK’s FCA guidance as a “means of exchange. . . a decentralised tool for buying and selling goods and services without traditional intermediaries” XDC has been designed to meet the basic functions of money – A store of value with which to transfer purchasing power from today to some future time which is highly trusted; A medium of exchange with which to make rewards for contributions and is easy to use; A unit of account with which to measure the value of a particular reward or contribution.