XinFin’s XDC01 Protocol – A Decentralized Approach to Cross-Border Remittance
For some time, transacting parties find it hard to send payments across borders. Despite the existence of fiat cross-border remittance platforms, such as VISA, MoneyGram, and PayPal, the system is yet to work in favor of the transacting parties.
XinFin is a blockchain-based project that aims at bringing full-scale decentralization to international trade. Of special interest is the remittance medium, which is currently fraught with problems. Nevertheless, the XDC01 Protocol is XinFin’s parameter for bringing revolution to the sector.
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The Necessity of the Protocol
It is a common practice among blockchain-based projects to make use of protocols in transactions. The aim is to monitor and ensure smooth flow of the process. The XDC01 protocol fulfills that purpose but the scope is for the core players in global trade. Therefore, it aims at regulating transactions alongside the smart contract technology.
Relationships between Smart Contracts, the XDC01 Protocol, & the Participants
Before now, XinFin instituted a decentralized platform for cross-border trades. Known as “TradeFinex”, the platform brings the major players (Beneficiaries, Suppliers, and Financiers) to one ecosystem. This ensures smooth flow of transaction and eliminates existing issues in a fiat setting.
Now, the smart contract technology serves as a medium of recording transactions via the network. The participants have to enter an agreement on the premise of the smart contract technology. Afterward, the project commences while the participants can check the milestones from time to time.
The XCD01 Protocol is interoperable with smart contracts, which makes it possible for confirmation of payments through the network. Note that all activities will be within the TradeFinex platform and will operate on XinFin’s hybrid blockchain architecture.
The Role in Data and Funds Circulation
In traditional climes, beneficiaries (individuals or institutions seeking finance for a project) find it hard to get across to financiers. On their part, financiers cannot dictate the actual use case of the loaned funds, and if the beneficiaries are making headway with the project. Suppliers also find it difficult to determine the possibility of getting funds for supplied items for a project.
XinFin addresses these challenges using the lightning speed of the XDC01 Protocol. It facilitates cross-border remittance to all parties using the XDC token. This implies that beneficiaries will get timely funds from financiers; financiers will get Returns on Investments (ROI) at the due date, and suppliers will get immediate payment for supplied items for the completion of a project.
For the decline in data circulation, the protocol the Internet of Things (IoT) layer into the platform. This maps current activities to financiers who, in turn, determine if the financed project is making headways. If not, they can alert the integrated escrow service to remit their funds, as the project seems to be a scam or has low prospects for their ROI.
Decentralized Cross-Border Trade
The overall aim of XinFin is to facilitate the provision of necessary infrastructure across the globe. The project identified the inherent issues and picked out the three major players to facilitate the decentralized intervention. With inputs from the effective XDC01 protocol and the smart contract technology, decentralizing international trades would not be a herculean task.
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