XDC or ERC-20 network: What’s the more-feasible stablecoin network?
With more traders feeling safer to hold a stock of stable coins and using these volatility-reducing-cryptocurrencies as liquidity tools, these coins continue to have an edge over other forms of cryptocurrency. In particular, stable coins continue to have an edge over popular cryptocurrencies — Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Bitcoin Cash (BCH) — as a base trading pair, thanks to the inherent price stability in these backed coins.
Given the growing significance of stable coins, there’s a need to understand: What’s the more-feasible stablecoin network?
To answer this question, a comparison of two leading blockchain networks — the XinFin’XDC and ERC-20 networks — will suffice.
What’s the more-feasible stablecoin network? The XDC or ERC-20 network
Both the XDC and ERC-20 networks support stablecoin operations. However, each network has unique aspects that influence its feasibility. Hence, comparing the two networks in terms of block time, network transaction fees, and transaction time is essential.
Block Time
Block time is the average time a blockchain network takes to generate an additional block or data file. More elaborately, it is the time taken to validate a new batch of transactions within a network. Within the cryptocurrency space, once a transaction is validated that’s when the transaction takes place. So, blockchain networks with shorter block times have faster transactions.
In the context of XDC and ERC-20 networks, the XinFin-XDC based stablecoin has a block time of approximately two seconds while the Ethereum (ERC-20) based stablecoin has a block time of roughly 10 to 20 seconds. These statistics indicate that transactions are validated within a shorter period on the XinFin network as compared to the Ethereum network. As such, transactions are faster when using XDC-based stablecoins.
Transaction Fees (TX fees)
Transaction fees are another metric that differentiates the feasibility in XDC and Erc-20 networks. Transaction fees on the Ethereum network are roughly 0.62% as compared to 0.00042% on the Xinfin network.
Put into context: for $50 worth of USDT on the Ethereum network, the transaction cost was 0.001359897 Ether or approximately 0.31 USD. For the same transaction on the XDC network, the cost was 0.00021 XDC or 0.00000078 USD.
The costs imply that the Ethereum based network is approximately 397,436 (0.31 USD /0.00000078 USD) times more expensive than the XDC network.
As well, the news that the digital ledger behind ether’s underlying blockchain is running out of capacity paints a grim picture for transaction costs on the ERC-20 network. With more companies adopting ethereum-based systems, competition for transaction space is set to increase. As a consequence, the cost of processing transactions on the digital token, Ether, might get too expensive.
On March 12, for instance, due to high network transactions, Ethereum Network Fees/ Gas prices spiked to as high as $3.70per transaction. So one has to pay 3.7% fees for a transaction worth 100 USD.
In another more confusing event on June 10, gas fees on the ERC-20 network hit an all-time high in the history of Ethereum.In particular, gas fees reached $2.6 million for a transaction that involved only $130. Shortly after the first transaction, another gas fee amounting to $2.6 million was charged for the transfer of $86,000.
Given the recent uncertainties in the ERC-20’s transaction fees, XinFin’s XDC based Stable coins offer a more reliable alternative.
Transaction Time
The XDC and ERC-20 network’s feasibility also differs in terms of transaction time. Specifically, the transaction time on the ERC-20 network is between five and seven minutes. On the other hand, the transaction time on the Xinfin network is roughly two-to-three seconds.
Differences in transaction time imply that transactions are faster on the XinFin Hybrid network. Given that the network’s capacity is not nearly full, the network holds significant potential in offering exceptionally fast, and highly secure transactions.
Bottomline
Feasibility in the XDC and ERC-20 networks is dependent on transaction costs, block time, and transaction time. With transaction costs on the XDC network being approximately 397,436 times less expensive than on the Ethereum based network, the Xinfin network offers a considerably cheaper alternative to the ERC-20. As well, the XinFin network offers shorter block and transaction times thus faster transactions.
That said: the more-feasible stablecoin network is the Hybrid Blockchain network, XinFin(XDC).
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