The blockchain industry is constantly evolving, but scalability, privacy, and efficiency remain key challenges. Many existing blockchain networks struggle with slow transaction speeds, high fees, and limited privacy features. Xelis aims to address these issues by introducing a BlockDAG-based decentralized network that offers enhanced scalability, security, and privacy.
Xelis is a BlockDAG (Directed Acyclic Graph) network that integrates privacy, scalability, and smart contract capabilities. Unlike traditional blockchains that follow a single-chain structure, BlockDAG technology allows multiple blocks to coexist at the same height, improving transaction speed and network security. Built with Rust and powered by the Tokio async runtime, Xelis offers a highly efficient and scalable blockchain infrastructure designed for real-world applications.
Xelis focuses on user privacy through Homomorphic Encryption and Zero-Knowledge Proofs (ZKPs), ensuring that transaction amounts and balances remain confidential while still being verifiable. The project also aims to integrate smart contracts powered by its custom-built XVM (Xelis Virtual Machine), offering developers a secure and efficient platform for decentralized applications (dApps).
Problem Statement
What Problems Does Xelis Solve?
Despite the growth of blockchain technology, several challenges persist that limit adoption and scalability:
Scalability Limitations: Traditional blockchains, such as Bitcoin and Ethereum, face issues with transaction speed and congestion. Slow block confirmation times and network congestion lead to high transaction fees and poor scalability.
Privacy Concerns: Most blockchains offer transparent ledgers, meaning that all transaction details are publicly available. While this ensures accountability, it also exposes users to surveillance, financial tracking, and potential security risks.
Centralization of Mining Power: Many PoW-based blockchains suffer from centralization issues, where large mining pools control a significant portion of the network. This reduces fairness and decentralization.
Smart Contract Security Risks: While Ethereum introduced smart contracts, vulnerabilities such as reentrancy attacks and exploits have led to security breaches, resulting in lost funds and weakened trust in decentralized applications.
How Xelis Solves These Challenges
Xelis tackles these issues with a combination of innovative solutions:
BlockDAG for Scalability: Unlike traditional chains, BlockDAG enables multiple blocks to be confirmed at the same height, significantly increasing transaction throughput while maintaining security.
Privacy Through Homomorphic Encryption & ZK Proofs: Xelis transactions leverage Homomorphic Encryption and ZKPs to ensure complete privacy. Transaction amounts and balances remain hidden while still being verifiable on the blockchain.
Fair Mining System with Xelis Hash Algorithm: Xelis introduces a new ASIC-resistant hashing algorithm that ensures fair CPU/GPU mining, preventing large mining pools from dominating the network.
XVM (Xelis Virtual Machine) for Secure Smart Contracts: Xelis is developing its own smart contract engine, XVM, designed for performance, security, and ease of use. This will allow developers to create dApps without the common vulnerabilities seen in traditional smart contract platforms.
Partnerships
Xelis has established key partnerships to enhance its ecosystem, liquidity, and accessibility across the decentralized finance (DeFi) and cryptocurrency sectors:
Trocador: A decentralized and privacy-focused exchange aggregator, Trocador enables trustless swaps of Xelis for other cryptocurrencies. This integration improves Xelis’s liquidity and accessibility while maintaining user privacy.
SoulBazaar: Through this collaboration, SoulBazaar provides engagement and educational agents for Xelis’s outreach efforts. Xelis also gains early access to future agent releases, further expanding its marketing and development potential.
Coinpal: Xelis has partnered with Coinpal to launch a fiat onramp, allowing users from various countries to purchase XELIS easily through multiple providers. This integration expands access to Xelis for global users.
NiceHash: Xelis is now supported on NiceHash, a cryptocurrency mining platform. This partnership enables GPU miners to mine Xelis efficiently, fostering decentralization and strengthening the network.
Tokenomics
The Xelis ecosystem is powered by its native token, XELIS, which plays a crucial role in network security, governance, and smart contract execution.
Token Utility
Coin Name: XELIS (XEL)
Average Block Time: 15 seconds
Maximum Block Size: 1.25 MB
Block Reward: Up to ~1.46 XEL
Maximum Supply: 18.4 million
Minimum Transaction Fees: 0.0001 XEL per kB
Atomic Units: 8
Block Dev Fee: 10%
Supply Emission Model: Instead of halving, the reward decreases with each block until reaching the maximum supply of 18.4 million.
Token Utility
Transaction Fees: $XEL is used to pay transaction fees, preventing spam and ensuring network security.
Staking and Governance: Token holders can stake $XEL to participate in network governance and vote on protocol upgrades.
Mining Rewards: Miners secure the network and earn $XEL as a reward for validating transactions and maintaining the blockchain.
Smart Contract Execution: Once XVM is integrated, $XEL will be the primary gas token for executing smart contracts.
The project is community-driven and does not have corporate funding, relying on a developer fee model that gradually decreases over time to ensure sustainability and continued innovation.
Team
Xelis is built by a team of experienced blockchain developers and cryptography experts. However, the core team has chosen not to publicly disclose their full identities, maintaining a focus on decentralized, open-source development. Notable contributors include:
Slixe – Lead Developer: An expert in blockchain architecture and cryptographic protocols, Slixe has been instrumental in developing the Xelis BlockDAG structure and privacy mechanisms.
g45t345rt – Fullstack Developer: Specializing in backend infrastructure and decentralized applications, g45t345rt contributes to the project’s technical scalability and efficiency.
Cyber – Community Manager & Marketing: Focuses on growth strategies, partnerships, and building an active community around Xelis.
The team is actively engaged in open-source development and encourages community contributions through GitHub.
Project Analysis
Strengths and Opportunities
Innovative BlockDAG Architecture: Unlike traditional blockchains, Xelis’s BlockDAG structure allows parallel processing of transactions, ensuring scalability and efficiency.
Privacy-Enhancing Features: The use of Homomorphic Encryption and ZK Proofs makes Xelis one of the most privacy-focused blockchain networks.
Secure Smart Contracts with XVM: The upcoming XVM will offer a custom-built, secure execution environment for dApps, reducing vulnerabilities seen in Ethereum-based contracts.
Fair Mining & Decentralization: Xelis uses a CPU/GPU-friendly hashing algorithm, preventing mining centralization and ensuring broader participation.
Challenges and Risks
Adoption and Network Growth: Since Xelis is a relatively new project, network adoption and developer activity will determine its long-term success.
Regulatory Challenges: Privacy-focused blockchains often face scrutiny from regulators. Xelis must navigate these challenges while maintaining compliance.
Competition with Established Projects: Competitors like Monero (privacy) and Kaspa (BlockDAG scalability) already have strong ecosystems. Xelis must differentiate itself through unique features and strategic adoption.
Conclusion
Xelis brings a unique approach to the BlockDAG space, combining scalability, privacy, and smart contract capabilities. While it shares similarities with Kaspa and Taraxa, its focus on privacy through Homomorphic Encryption and Zero-Knowledge Proofs sets it apart. Unlike Kaspa, which prioritizes high-speed transactions with a fair launch PoW model, $XEL integrates a privacy–centric approach, making it more aligned with projects like Monero but with added scalability benefits.
Compared to Taraxa, which positions itself as the “Ethereum of BlockDAG” by focusing on smart contracts, $XEL introduces XVM, its own virtual machine, aiming to improve the security and efficiency of smart contracts. Taraxa benefits from EVM compatibility, which helps with adoption, whereas $XEL is developing its own ecosystem from the ground up, which presents both opportunities and challenges.
However, Xelis faces significant hurdles. Adoption is a key challenge, as it must attract developers and users in an already competitive landscape. Additionally, privacy-focused projects often face regulatory scrutiny, which could impact its ability to scale globally.
For those looking for a privacy-first, scalable blockchain with fair mining incentives, Xelis presents an interesting alternative to existing BlockDAG solutions.
ETH
0.61%
