When the XDC Network launched in June 2019the primary focus was on providing scalable and efficient alternatives to Ethereum that could support enterprise-grade blockchain applications. Over the past five yearsthe landscape of EVM-compatible layer-one blockchains has expanded significantlyoffering numerous solutions for these needs. As the industry has evolvednew challenges and opportunities have emergedprompting the XDC Network to innovate and adapt continuously.

Todaythe XDC Network is at the forefront of advancing blockchain technologyintroducing a range of new features and upgrades to meet the demands of an ever-changing blockchain landscape and the industries adopting it. Among the most significant advancements coming is the highly anticipated consensus upgrade. While its excitement is warrantedthere are many other exciting developments worthy of discussion that we will cover. 

XDC 2.0 

The biggest update coming is obviously the anticipated consensus upgrade for the XDC Network. Currently running on Apothem (testnet)XDC 2.0 brings remarkable performance improvements with equally ambitious security upgrades. This upgrade not only makes the XDC Network one of the most secure and best performing blockchains but solidifies its place amongst the most trusted. Upgrades of note include a three block finalitybyzantine fault tolerant consensusand on-chain forensics that prevent rogue nodes from attacking the network. Howeverthere are many other updates coming with the consensus upgrade that will make significant impacts on advancing the XDC Network forward. Audits for XDC 2.0 have concluded and its findings are being addressed then tested before launching on mainnet in October. 

Subnets

In addition to the consensus engine upgrade will be the launch of subnets to the XDC Network mainnet. This technology allows users to deploy a permissioned blockchain tailored to their specific needswith sovereignty over data and similar performance to the mainnet. The architecture includes components like a custom-configured subnet managersubnet generatorcross-chain messaging and interoperability between subnets and the mainnetand much more. XDC Network Subnets will open new opportunities and enable support for a diverse range of use cases across multiple industries.

Subnets will go live on mainnet around the same time as the consensus engine upgrade. With their release will come a line of tools and infrastructure that enables users to use subnets full potential. We will cover this infrastructure and provide sources throughout the article. 

Optimizing Network Fees

The XDC Network currently has some of the lowest gas fees in the industry which has made it a favorable place to build. While maintaining very low gas fees may seem like an obvious thingthere are effects beyond the affordability of transactions that must be consideredsuch as security and network performance. A modest increase in network gas fees will be implemented in parallel with the consensus upgrade. Yeteven with the increase the XDC Network will maintain its position amongst the most affordable places to build. We can expect this update to be implemented with the mainnet consensus upgrade. 

Subnet Manager UI

The Subnet Manager will allow users to easily manage and monitor their subnets through a user interface. The tool will have three main features including a homepage for subnet details and basic management actionsconfirmation checker for transactionsand subnet manager for settings and configurations. You can view more information about the subnet manager in the documentation. 

Subnet Generator

The XDC Subnet Generator streamlines the deployment of XDC Network subnets by generating the necessary configuration files and Docker images. Many of the subnet components are supported with the toolincluding validator nodesboot nodesand upgradable smart contracts like the Checkpoint Smart Contract (CSC). Users can also customize their subnet’s parameterssuch as consensus mechanismsnode countand gas fee structuresensuring a tailored blockchain environment for specific use cases. 

Development of the subnet generator is complete and will be available when the subnets launch on the mainnet. It will continue to receive updates as new features and functions are developed for the subnets. More information can be found here. 

XDC Zero 

This technology will enable subnets and the XDC Network to achieve a new level of interoperability by providing cross-chain data transmission and validation. Its four primary features include an oracleendpointrelayerand front end UI manager.

OverallXDC Zero provides the infrastructure for cross-chain capabilities across subnets. The introduction of a user interface makes it easier for users to leverage XDC Zero and enable their subnets potential. Most of the development is complete and will be live with subnets  shortly after the consensus upgrade. Read more about XDC Zero here.

Subswap

While XDC Zero provides all the cross-chain capabilitiesSubswap allows you to use them. Subswap provides a cross-chain dApp that uses XDC Zero’s infrastructure for a secure asset transfer and swapping experience. A more detailed description of Subswap has been written by one of its developers here and its release can be expected with XDC Zero.

USDC Bridge with Circle

Bridging USDC to the XDC Network represents a significant milestone in expanding the ecosystem's reach and capabilities. Bridge development is nearly complete and will undergo a thorough review from the Circle team before its release to ensure a secure and trusted solution. Functioning as a standalone platform with its own user interfaceuser experience should be simple and easy.  This initiative will not only increase liquidity substantiallyit will also unlock new opportunities for decentralized finance (DeFi) applicationstokenized assetsand many others. With development nearly completetesting and review by the Circle team will begin. We can expect this to be live some time in Q4 of this year. 

USDT Bridge with Tether

Similar to the development of the USDC bridge with Circle will be a bridged USDT with Tether. This solution is in its early stage compared to USDCbut development will begin soon. Users will benefit from a secure and trusted solution that provides a user friendly experience. The addition of bridged USDT will increase liquidity and open a wide range of opportunities across the ecosystem. With this solution being in its early stagesa release will come after the launch of bridged USDC. 

Node Enhancements & Network Updates

XDC Network is set to receive a series of updates and enhancements following the consensus upgrade move to mainnet. These updates will roll out over a six to nine month period and focus on improving smart contract executionoptimizing node performanceand boosting overall network efficiency.

1. Implement generic LRU (Least Recently Used) Cache & replace Bigcache with Fastcache

By implementing a generic LRU (Least Recently Used) cache mechanism and replacing Bigcache with Fastcachethe update will significantly improve memory management and data retrieval speed. This combination ensures that only the most recently accessed data remains in cachereducing memory usagelowering latencyand preventing potential bottlenecksleading to overall better node performance.

2. Reduce receipt size

Optimizing the size of transaction receipts will increase network efficiency by minimizing the amount of data handled by nodes. 

3. Optimized Transaction Signatures with EIP-191 and EIP-712 

Implementing these EIPs will standardize the methods of signing transactions on the XDC Network. EIP 191 defines a way to prefix data for off-chain messaging before it is signedcreating a clear distinction between on-chain and off-chain transaction signatures. EIP-712 provides a clear data structure in human readable format that makes it easier for users to understand what they are signing. 

4. EIP-3541

Reserves bytecode to be used in the future for enhancements and functionality updatespreventing conflicts with existing smart contracts as updates are introduced. 

5. EIP-3860

Limits the size of initcode to prevent excessively large smart contracts from being deployedsustaining an efficient level of network performance. 

6. EIP-2681

Caps the amount of blocks that can be skipped by validatorsensuring validators cannot excessively delay block production. Although the XDC Network benefits from fast transaction speeds and efficiencybeing proactive is crucial for stability and security. 

7. v0.8.24v0.8.25& v0.8.26 Solidity Updates

Adding support for newer versions of Solidity provides the latest features and enhancements in smart contract development on the XDC Network. With this updatethe XDC Network will be compatible with the latest version of Solidity. 

8. Support for Pebble

Pebble provides nodes the ability to write quickly and handle high loads of writingand even improves read performance. This will allow nodes to efficiently access datavalidate transactionsand even improve smart contract execution. OverallPebble will improve latency under high demand. 

9. Improve tracer

A tracer is used to monitoranalyzeand debug the execution of transactions and smart contracts. This is a vital tool for on-chain analysisauditingtransparencyand insight. An explorer is one example of a tool that leverages a tracer and could see improved functionality with these improvements. 

10. EIP-1559 Compatibility

EIP-1559 was an essential implementation for Ethereum that improved its gas fee payment process for users. Although the XDC Network is inherently scalable and efficientmaking it less reliant on mechanisms like EIP-1559it is important to remain compatible with services that interact with Ethereum and other EVM-compatible blockchains. To ensure compatibilitysupport for EIP-1559 related RPC methods will be implemented to minimize errors when interacting with the XDC Network.

Now that we have reviewed what's coming to the XDC Networklet's take a look at a few of the releases we witnessed so far this year.

XDCDAO

The launch of XDCDAO marked a major milestone in offering a decentralized governance framework for empowering the community to influence the network's direction.

Account Abstraction 

Account abstraction opens new possibilities for interacting with blockchain technology. Traditionallyusers are limited to simple capabilities such as signing transactions and transferring assets. This limits the ability to perform more complex and automated tasksrequiring the use of additional smart contracts and off-chain services. With account abstractionuser accounts can be managed by smart contracts instead of being directly tied to a private key. Development by Etherspot is complete and live on mainnet. 

Solidity Update to v0.8.23

This marked another step towards enhancing the XDC Networks smart contract capabilities and compatibility. More updates are coming and will be covered later in this article. 

 XDC Network AI Assistant

CodeRun AI is a developer assistant powered by the XDC Network. It can be used for technical and strategic guidanceas well as smart contract development. 

For more than five yearsthe XDC Network has provided a trusted and reliable blockchain for trade finance solutionstokenizationand many other applications. This has not only been an accomplishment itself but an opportunity to understand the technology demands of developersan evolving blockchain industryand the industries using it. The updates and enhancements outlined here represent more than improvements; they represent the network's ability to meet those technology demands and solidify its competitive edge in the industry. 

Not only is a new consensus engine being deliveredbut a collection of upgrades that improve the overall experience of using the XDC Network will be included. Imagine deploying your own blockchain with the XDC Network’s level of performance? While that is an incredible feature itselfthe ability to interoperate and grow beyond that creates new opportunities and exciting possibilities. New and emerging initiatives wanting to use blockchain technology will have years of innovation at their disposal and the tools to use itinviting a new wave of participants to the growing XDC ecosystem. As the XDC Network continues to evolveit is clear that the XDC Network is on a trajectory to becoming one of the top blockchain technologies globally. 

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