XP.NETWORK Whitepaper
V2.0 / Release Date: 01.10.2021
Introduction
XP.NETWORK is an ecosystem centered around a multi-chain bridge for minted NFTs. It tears down the barriers between blockchains, allowing NFTs to flow freely across networks. Connecting dApps, token minters, traders, and owners, XP.NETWORK builds the foundations for a single global NFT market.
The NFT industry has been expanding rapidly, with weekly sales growing from $2.3 million in January 2021 to $1 billion in August, while the number of active wallets increased from 6,000 to 70,000. The process is accelerating as hundreds of NFT projects pop up on other blockchains, such as Binance Smart Chain, Solana, and Avalanche, where minting fees are far lower than on Ethereum.
However, emerging NFT communities on these alternative blockchains suffer from a lack of liquidity. Being limited to a single chain, these promising NFT projects – and NFT holders – miss out on countless opportunities.
The XP.NETWORK bridge solves this issue, making it possible to transfer an NFT from one blockchain to another in seconds at a minimal cost. This means wider exposure for NFT creators, better liquidity for asset holders, and increased transaction flow for the bridged blockchains. For example, an NFT minted on Avalanche can be sent to Ethereum and listed on OpenSea – something that hasn’t been possible until now.
The bridge combines high scalability with superior security. It works by creating wrapped NFTs that preserve the original assets’ metadata without duplicating the assets themselves. The original NFTs are safely stored in custody and can be restituted to the holder if needed.
This White Paper lays out the architecture of the bridge, including the exciting possibility to mint a chain-agnostic NFTs directly on it. We proceed to describe the transaction flow from the end user’s point of view, as well as the internal mechanics of bridging.
Next, we describe $XPNET, the native token of XP.network, used to pay relay validators’ fees. XP.NETWORK allows users to pay the bridge fees in the currency of the original blockchain, be it ETH, BNB, AVAX, SOL, MATIC, EGLD, or something else, while the required conversion to XPNET is executed internally and invisibly to the end user.
XPNET is also used in the staking program, which – for the first time in the industry – centers around chain-agnostic NFTs. Each staker can mint an NFT, which serves as the access key to staking rewards. One can choose to either hold the NFT until the end of the staking period and then claim the rewards - or sell it, at which point the buyer will acquire the right to the XPNET rewards, while the original owner will still be able to withdraw the staked XPNET.
Finally, a whole chapter of the White Paper is dedicated to the crucial subject of bridge security. Considering that an NFT can be worth thousands and even millions of dollars, making them an attractive target for hackers. XP.NETWORK introduces a multilayer security system that builds a virtual castle around the NFT pathway. One broken wall only takes an intruder as far as the next barrier, never letting them into the heart of the system.