What is the XDC Subnet? Private Blockchain Networks

2025-06-18

XDC Subnet is designed within the XDC Ecosystem to allow enterprises to build their own secure, scalable, and private blockchain networks while leveraging the trust and power of the XDC Mainnet.

Let’s break down what the XDC Subnet is, how it works, and why it’s quickly becoming a top choice for enterprise-grade blockchain solutions. Find out more here!

What is the XDC Subnet?

XDC Subnet is a permissioned blockchain network that operates independently but checkpoints key consensus data to the XDC Mainnet. This setup allows enterprises to enjoy the benefits of blockchain, like immutability and transparency, without exposing sensitive data to the public.

Here’s the main components of XDC Subnet architecture:

1. The Subnet: A private blockchain operated solely by the enterprise using the XDC2.0 consensus engine.

2. Relayer: A middleware component that pushes privacy-preserving checkpoint data from the Subnet to the XDC Mainnet and pays the required transaction fees.

3. Checkpointing Smart Contract: A smart contract deployed on the XDC Mainnet that verifies and stores checkpoint data.

4. Wallet Plus: A user-facing interface allowing regular transactions on the subnet, while also enabling extra security by connecting to the mainnet.

As seen in the image provided, this architecture is tightly integrated with the XDC Mainnet but remains private and fully controlled by the enterprise.

Advantages of the XDC Subnet

Unlike other scaling solutions such as Optimistic Rollups or ZK Rollups, XDC Subnets are specifically designed for use cases that demand speed, privacy, and flexibility.

Here are the key reasons why it stands out:

1. Complete Privacy: Transactions within the Subnet are invisible to the public. Only essential checkpoint data is sent to the XDC Mainnet, ensuring your sensitive information is never exposed.

2. High Performance: Using XDC2.0, the Subnet delivers enterprise-grade performance with fast finality and low-latency operations.

3. Customizable and Sovereign: Each Subnet is tailor-configured and fully owned by the enterprise, offering a truly sovereign solution within a trusted Layer-1 ecosystem.

4. Dual Layer Security: The Subnet gets the best of both worlds, its own native security and the additional trust layer of the XDC Mainnet via checkpointing.

5. Developer Friendly: With EVM compatibility, you can deploy smart contracts just like on Ethereum. Plus, you get full access to XDC tools like blockchain explorers, SDKs, and forensic monitoring.

How the XDC Subnet Works

Here’s how the interaction flows between the components:

Source: XDC Network

1. Transactions are executed privately within the Subnet.

2. A Relayer gathers consensus data from the Subnet.

3. This data is checkpointed to a smart contract on the XDC Mainnet.

4. Users can optionally verify and interact with these checkpoints via Wallet Plus, adding an extra layer of trust and security.

This mechanism ensures transparency without compromising privacy, ideal for financial institutions, supply chain operators, and consortiums.

Use Case of the XDC Subnet

Here’s the ideal industries and use cases of XDC Subnet:

1. Finance & Banking: Secure internal ledgers and interbank transactions.

2. Supply Chain: Track product origins and movement while maintaining confidentiality.

3. Healthcare: Handle patient records and data sharing among providers securely.

4. Government: Private record keeping with transparent checkpoints to build trust.

Conclusion

So, what is the XDC Subnet really about? It's a robust and enterprise-grade solution for businesses seeking control, privacy, and performance in the blockchain world.

By combining the independence of private networks with the trust and infrastructure of the XDC Mainnet, Subnets unlock new possibilities for decentralized yet private blockchain applications.

Whether you're running a bank, managing logistics, or building a new dApps platform, XDC Subnet gives you the tools to build securely, scale efficiently, and operate privately, all while staying anchored to a trusted Layer-1 blockchain.

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FAQ

What is the XDC Subnet?

The XDC Subnet is a private blockchain network built within the XDC Ecosystem that allows enterprises to create secure, customizable, and scalable decentralized networks.

How is it different from rollups?

Unlike optimistic or ZK rollups, Subnets do not submit full transaction data to the mainnet. Only privacy-preserving checkpoint data is submitted, offering better privacy and flexibility.