Xar Network was created from a need of corporate and central banks to use blockchain technology in a private, permissioned space. As our feature set grew we noticed consistent cross-over with the decentralized finance ecosystem, so eventually the Xar toolkit grew to a full fledged decentralized finance toolbox. Xar Network offers access to advantages of both purely traditional banking systems and blockchain systems – using blockchain based or decentralized finance (DeFi).
We at Xar predict that eventually banking and blockchain systems will be intertwined – and that we can extract benefits from both of these systems to facilitate an inclusive and equitable financial future for everyone.
Xar Network (as a public permissionless chain) can provide a safe and secure decentralised finance platform for everyone to use – governments, banks, businesses, users, and investors. In addition to this, Xar Network can provide the blueprint for anyone to build their own customized finance platform, all the while being fully interoperable with the public chain as an onramp into the cryptoverse.
Xar Network’s own staking model using CSDT is not only a system in itself, it also provides a reference template for central banks, banks and businesses to launch their own systems on top of Xar Network.
The infrastructure tools that have been built into the Xar Network platform are open for anyone to use. Countries or even regions could co-operate to form their own or a multi-nation stable currency as well as CSCTs (collateralised stable currency tokens).
Currently users can deposit supported tokens on our public network as collateral and mint stable currency tokens called CSDTs (collateralized stable dollar tokens). They can then stake these stable currency tokens to secure the network, earn interest on this stake, receive rewards from staking, and receive these rewards in a non-inflationary stable token – and all of this can be integrated into traditional banking models.
Xar allows you to deposit any supported digital asset, collateralize it, mint Collateralized Stable Currency Tokens (CSCTs) based on this collateral, and then use these CSCTs to stake and earn rewards. All the while maintaining ownership of your underlying collateralized asset. Staking CSCT allows you to receive rewards from the fees pool, proportional to your share of the total CSDT stakes in the network. Your rewards are paid in a stable currency token, such as CSDT (collateralized stable dollar token), not in an inflationary token as in some other networks.
Stable tokens minted on Xar Network can include fiat-backed tokens issued by central banks, tokenized assets used for Islamic banking, as well as various other tokens. For now, we have only introduced the CSDT (collateralized stable dollar token).
Blockchain banking has additional requirements over and above those required by users of blockchain systems. Banking token issuers have to comply with local and global regulatory requirements, and give users confidence that their funds or assets are secured not only within the scope of a local central bank or regulator’s provisions, but also on-chain in a decentralized manner. This is exceptionally challenging, and at the same time offers many opportunities for Xar Network.
Working and interacting with different central and commercial banks around the world has shown us that there is no one-size-fits-all blockchain solution for the banking industry. Because so many different applications are being built on the basis of Xar Network, we have designed the Xar Network template to be customizable to these unique needs.
An example is our architecture for regional chains (like the ZAR Network in South Africa), which has a public permissioned structure. In this system prospective issuers such as the central bank and its licensed financial service providers are given the option to deploy regulated products, in line with official government requirements. Proprietary and fully KYC & AML compliant financial asset token protocols have been built upon Xar Network. This ensures that financial institutions have the functionality to provide compliant issuance and wallet controls.
If allowed by the proprietors of such a custom chain, value could even be bridged from custom chains onto the globally accessible, public permissionless Xar chain. All this can be achieved while staying within the guidelines of standards on global anti-money laundering, data protection, and local exchange control / balance of payment reporting.
Our Xar Network enterprise division is currently developing tokenized deposit ecosystems for commercial and central banks, as part of the next generation of global finance.
Fantom Foundation’s sophisticated consensus mechanism is an integral part of the Xar Network system.
Based on Lachesis and the TxFlow protocol, Fantom Foundation’s consensus mechanism allows high responsiveness with almost instantaneous full finality (~1.2 seconds), at very high transactional throughput (processing in excess of 20,000 transactions per second).
As a result, Xar Network and our customized and localized chains can provide fully verifiable, transparent and truly decentralised validation of transactions in the real world – at an unprecedented speed. This means that superior smart contracting features can be implemented, security in a public ledger is increased and data bloat is reduced.
We are proud to announce the Fantom token (FTM) as the first token that can be used as collateral on the Xar Network public chain.
We are now in the production phase of what we saw is a breakthrough in how the banking and blockchain industries will work together. Xar Network is actively developing relationships with like-minded businesses, governments and banking partners around the world, to exploit exciting opportunities for innovation.
Our recently public DeFi chain (XAR) has officially been launched – and we are excited to see how many revolutionary projects the community and our fellow innovators will build on top of it.