How Is XDC Related to XRP? Crypto Comparison Guide

Meta Title: How Is XDC Related to XRP? Crypto Comparison Guide Meta Description: Learn how XDC and XRP are related, their differences, and their roles in blockchain-based payments and finance. Get clear answers & the latest insights. URL Slug: how-is-xdc-related-to-xrp

Understanding the Connection: XDC and XRP in Crypto

If you're exploring blockchain, you might ask, “how is XDC related to XRP?” While both XDC and XRP are major digital assets supporting rapid and secure payments, their relationship lies in shared goals and some overlapping use cases in global finance. This guide explores their similarities, differences, and how each drives innovation in blockchain payment networks.

XDC and XRP: Basics and Key Functions

To understand how XDC relates to XRP, it’s important to first know what each project is and what problem it aims to solve.

• XRP is the native token on the XRP Ledger, designed by Ripple Labs in 2012 to enable fast, low-cost, cross-border payments for banks and financial institutions. Its main goal is to replace old payment systems, such as SWIFT, by making transfers nearly instant and affordable, benefiting both institutions and remittance senders.

• XDC is the native coin of the XDC Network, also known as XinFin, a hybrid blockchain built for business-to-business payments and trade finance. Like XRP, XDC is optimized for fast transactions and low fees, but it offers more flexibility for running decentralized applications (dApps) and smart contracts, making it suitable for supply chain and trade solutions.

Comparison Table: XDC vs. XRP

| Feature | XRP Ledger | XDC Network | |------------------------|-----------------------|----------------------------| | Launch Year | 2012 | 2017 | | Native Coin | XRP | XDC | | Consensus Mechanism | Federated Consensus | Delegated Proof-of-Stake | | Smart Contract Support | Limited | Full (EVM-compatible) | | Main Use Case | Cross-border payments | Trade finance, B2B payments|

Both aim to solve global payment inefficiencies, but differ in technology scope and network openness.

Overlapping Use Cases and Differences

Shared Vision for Global Payments

Both XDC and XRP focus on improving international transactions:

• Speed and Efficiency: Traditional wire transfers take days; XRP and XDC can settle transactions within seconds or minutes.
• Low Cost: Both offer near-zero transaction fees, essential for high-volume payment flows.
• Integration with Financial Institutions: XRP targets banks for currency conversions and liquidity; XDC is popular among trade businesses and fintech dApps.

Key Differences

• Consensus Mechanism: XRP uses a unique Federated Consensus protocol where a group of trusted validator nodes agree on transactions, while XDC uses Delegated Proof-of-Stake (DPoS) for higher scalability and community governance.
• Smart Contracts: XDC supports Ethereum-compatible smart contracts and dApps, offering broader programmability. XRP’s smart contract functions are limited, though this may change with further development (e.g., Hooks amendment proposal as referenced by XRPL.org).
• Ecosystem: The XDC Network is favored in trade finance, while the XRP Ledger remains dominant in remittance and cross-currency markets as highlighted in Ripple’s annual reports.

Project Backgrounds, Recent News, and Market Impact

XDC: Evolution and Growth

The XDC Network originated as a hybrid blockchain solution designed for public and private (enterprise) use. Enterprises like TradeFinex and the International Trade and Forfaiting Association (ITFA) have partnered with XDC for digitizing trade instruments, making it a popular choice in regulated finance sectors.

Notable Updates (as of 2024):

• DC United partnership: XDC has increased global visibility through sports sponsorships.
• Enterprise Expansion: Integration with trade platforms and regulatory bodies.

XRP: Institutional Collaborations and Challenges

Ripple’s XRP Ledger has been deployed in hundreds of financial institutions worldwide, with notable partnerships in Asia, Europe, and the Middle East. However, XRP faced legal scrutiny in the US (SEC vs Ripple), but recent clarifications have boosted adoption rates again.

Recent Developments (2024):

• On-Demand Liquidity (ODL): Used by more banks and remittance services.
• New Developer Tools: Efforts to expand non-custodial functionality.

Market Performance

While both tokens are in the top 100 by market capitalization, XRP generally enjoys higher liquidity and daily volume due to its larger institutional user base (CoinMarketCap, Glassnode data).

Frequently Asked Questions: People Also Ask

How does the tech behind XDC compare to XRP?

Both networks process thousands of transactions per second, but XDC’s Delegated Proof-of-Stake allows broader participation and open development, while XRP remains more centralized but extremely fast and energy-efficient.

Can XDC interact or be swapped with XRP?

Yes. Several decentralized and centralized exchanges support XDC/XRP trading pairs. To store either, use a secure wallet such as Bitget Wallet, which supports multi-chain assets and provides a user-friendly interface for both tokens.

Which is better for cross-border payments?

• For banks: XRP’s established network and regulatory work make it a strong option.
• For enterprise or trade finance: XDC’s hybrid design and smart contract support are favored.

Are XDC and XRP interoperable?

Not natively, but bridging solutions and interoperability protocols (such as WanChain, Chainlink, and Thorchain) are making it easier to transfer value between different blockchains, including between XDC and XRP networks.

What wallets should I use for XDC and XRP?

Always choose trusted, multi-chain wallets. Bitget Wallet is recommended for holding XDC, XRP, and major cryptocurrencies, providing enhanced security and cross-chain features for all user types.

Expert Opinions and Unique Insights

• Dune Analytics: Reports show rising transaction counts on both networks, with XDC’s smart contract activity steadily growing and XRP’s cross-border volume rebounding after regulatory updates.
• Nansen’s Network Data: Illustrates that developer activity is increasing on XDC, while XRP maintains leading transaction settlement speed.
• XRPL.org & XinFin documentation: Both projects frequently update their foundational protocols, showing continued maturation and institutional adoption.

Key Takeaways and Next Steps

Exploring how XDC is related to XRP reveals two innovative blockchain projects with a shared vision for upgrading global finance but unique solutions and ecosystems. Both bring fast, affordable payments to the forefront, yet each specializes in distinct industries—remittance and banking for XRP, trade finance and dApps for XDC.

For users and enterprises, research your specific needs, monitor ongoing project developments, and use secure platforms, like Bitget Exchange and Bitget Wallet, for storing or transacting XDC and XRP. Together, these networks offer a glimpse into the future of digital payments, highlighting the continued evolution of blockchain technology.