X-Cash – Building a privacy-oriented ecosystem on top of blockchain technology
With all the ongoing developments and upcoming updates, X-Cash is in the right position to serve the Web3.0 users who are wary of their privacy.
While the crypto world admires the pseudonymous nature of blockchain-based transactions, they are not necessarily private. Bitcoin, ether, and other cryptocurrencies run on blockchains, and hence each transaction between any two parties gets recorded on a public ledger. Along with the transaction data, the blockchain also records the wallet addresses. With this transaction record, anyone can be traced, especially when a wallet transfers funds to a centralized exchange that stores users’ KYC information. That is where privacy coins are needed.
Private coins aim to protect transaction information, thereby giving users more anonymity. There are various ways to add privacy to pseudonymous cryptos like Bitcoin, like peer-to-peer trading and coinjoins, some crypto assets focus on privacy more directly with their technology. One such project is X-cash.
Overview of X-Cash
An open-source private cryptocurrency designed for Web3.0, X-Cash is a fork of Monero that came on the scene about three years ago, initiated with the aim to bring innovation in the privacy coin space. Unlike most of its peers from the same period, it didn’t undergo an Initial Coin Offering (ICO) round and has been a self-funded project ever since its inception.
A large community of developers work on X-Cash’s protocol to accomplish its mission of building a privacy focused architecture. By focusing on privacy they enable users to interact with Web 3 securely while taking advantage of the blockchain’s anonymity enabling technology. As such, the team has built the first flexible privacy feature called FlexPrivacy that allows users to carry out both public and private cryptocurrency transactions on the network. In simpler terms, X-Cash combines the transparency of Bitcoin and fuses it with the privacy of Monero.
The FlexPrivacy functionality of X-Cash allows users to decide whether they want their transaction to be broadcasted publicly or obfuscated, giving them more control over the transparency or opaqueness of transactions, within the same wallet. Additionally, since the switch from a Proof of Work (PoW) to a customized Delegated Proof of Private Stake consensus, users are able to stake their XCASH while keeping their stake unlocked.
DPoPS – a unique consensus algorithm to protect privacy
X-Cash started as a Proof-of-Work-based (PoW) privacy coin. However, considering the number of resources utilized in achieving consensus through a PoW mechanism, the project shifted to an advanced version of a Delegated Proof-of-Stake (DPoS) algorithm, designed on top of the famous privacy coin Monero’s technology. Since this algorithm is not easy to deploy on privacy-preserving blockchain-based systems, the X-Cash team combines DPoS with a delegation through reserve proofs, a Byzantine Fault Tolerant consensus (DBFT), and randomized selection of block producer to develop a brand new mechanism called Delegated Proof of Private Stake (DPoPS).
In the DPoPs mechanism, over 50 elected delegates secure the X-Cash ecosystem. The network elects these validators based on a voting process that allows voters to stake their XCASH tokens to vote for their preferred delegate. However, to be able to cast a vote, the minimum stake is 2 million XCASH coins. The elected delegates are responsible for verifying blocks and adding them to the blockchain.
To ensure these candidates are selected at random, X-Cash added Verifiable Random Functions to verify the “randomness” of the selection process. Each new block is created during a 5 minutes time frame, between which each delegate verifies the selection process and agrees with the content of the block. Failing to do so, another backup block producer is selected.
In return for validating transactions and securing the network, block producers get the block reward. Delegates share this reward among their voters in proportion to their staked XCASH. The incentive ensures that everyone works in the best interest of the X-Cash ecosystem, while rewarding holders of the coin.
A Future-Ready Consensus to Serve Web3.0 Users
In the crypto space, several privacy-based coins exist that serve similar purposes of preserving the anonymity and confidentiality of users. X-Cash differentiates itself from others by implementing a DPOPs consensus algorithm on its network, allowing users to anonymously take part in the governance of the token. On top of enabling governance, this consensus mechanism positions the network to bring Smart Contract and NFTs to this privacy-based project.
While smart contracts are not new to the crypto space, non-fungible tokens represent a new wave of digitally native blockchain unique use cases of the technology. X-Cash intends to stay at the forefront of the ongoing revolution by bringing an anonymous layer of privacy to NFTs. It will ensure that digital collectors remain safe from the eyes of malicious actors by using XCash tokens, which will allow them to keep their identities hidden.
Furthermore, to increase scalability, X-Cash has plans to introduce sidechains as the next step in blockchain hosting. It will allow complete programs to run smart contracts on the X-Cash blockchain. Shortly, X-Cash will bring sidechain payments to enable near-instant payment processing on the network. In addition to creating and hosting blockchains, these sidechains will allow NFTs to be hosted on them to allow artists to create digital artwork powered by X-Cash.
Additionally, the X-Cash Foundation is working to bring out a wrapped version of X-Cash, the WXCASH, on the Polygon (ex Matic) network. The aim is to bring more visibility into the project, while increasing interoperability between the privacy coin space and the existing and proven Ethereum ecosystem.
With all the ongoing developments and upcoming updates, X-Cash is in the right position to serve the Web3.0 users who are wary of their privacy. The network is a much-needed bridge between users and blockchain technology.