As XDEX becomes more widely adopted through partnering efforts, the governance of the XDEX Network will be transitioned to a decentralized, not-for-profit foundation – XDEX Development Foundation.
It is anticipated the foundation will follow the XDEX blockchain governance model as described here.
Below are the User Types of stakeholders who will interact with the chain and participate in some form of governance or value adding activity. User Types are the categories of users of the XDEX Network who create and distribute applications, smart contracts, and perform operations using XDEX.
XDEX Users include the following:
- Executive Committee — A member of the XDEX Network governance board elected through democratic vote of all XDEX ecosystem members
- Executive Director — Oversees operation of the XDEX Network ecosystem under the direction of the Executive Committee
- Ombudsman — A non-voting, non-authoritative member of the Executive Committee who attends all meetings and provides 3rd-party transparency to Executive Committee operations
- Witness — Operator of XDEX Network ledger authority
- Primary Node — Node operators who are authorized to write transactions to the production XDEX Network
- Validator Node — Node operators who are authorized to aggregate transactions for forwarding to Primary Nodes, as well as audit the blockchain transactions on the ledger
- Oracle — A type of user who is authorized to provide and verify external data and information outside of the XDEX Network
- Identity Validator — An entity who is authorized to maintain and verify a user’s legal identity, as well as validate that identity based upon user request and permission.
- Service Provider — An entity who provides services directly to the XDEX Network ecosystem through democratic vote of approval for proposals by the XDEX user members
- Enterprise Cloud Provider — An entity who connects their own applications through the XDEX Enterprise Cloud as a provider to their end users
- Developer — XDEX developers who create applications for end users (client side) and develop new smart contract templates that interact with the system used by XDEX users to initiate transactions. They also write code to enable the blockchain to interact with legacy applications
- Administrators — XDEX administrators perform administrative activities related to the XDEX Network and applications such as deployment and configuration of the XDEX Network or applications
- Operators — XDEX operators are responsible for defining, creating, managing, and monitoring the XDEX Network and applications
- Auditor Authority — XDEX auditors are part of the business network and are responsible for reviewing the transactions or access control lists and validating the integrity of those transactions from a business, legal, audit and compliance perspective
- Business Users — Business users operate within the XDEX Network and interact with the blockchain using the XDEX Platform Wallet, as well as any other extended XDEX-based applications
- Platform Wallet User — The direct end user account at the XDEX Network level
- Enterprise Application User — A user of any extended XDEX Enterprise Cloud application that ties directly to a Platform Wallet User account within that external system
The XDEX Network blockchain enables a democratically elected governing board called the Executive Committee to regulate the parameters of the XDEX Blockchain and network. The XDEX Executive Committee will be comprised of members elected by the Voting Nodes. The role of the Executive Committee is to:
- Propose and modify blockchain parameters to support the normal functioning and growth of the network.
- Delegate certain executive roles to certain chain executives (such as issuing licenses and authenticating said licenses).
- To act as a check on the power of said executives by having the ability to terminate their access to the network.
The Executive Committee itself has no control on the state of the database or the construction of the XDEX Blockchain Foundation and is programmatically prevented from making any changes to it. Since the XDEX network itself manages and maintains the state and the transaction ledger, the only way to make any undesired change is to subvert the majority of Primary Nodes.
The Executive Committee is consisting of seven individual Directors, each of whom is bestowed with full voting privileges. Generally, each Director serves for a 6-year term. However initial Directors will be serving staggered terms (of 2-6 years) to ensure continuity of experience. A minimum of 3 Directors are required for the governance of the XDEX Network ecosystem, and as many as 9 may serve on the Executive Committee.
In addition to the Executive Directors, there is an Ombudsman member of the Executive Committee, who does not vote and does not hold any responsibilities within the Executive Committee, but who attends all Executive Committee meetings — and who provides a degree of independence and transparency to the Executive Committee’s governance process.
Finally, there is a Managing Director who works for the Executive Committee and is responsible for ensuring that all of its decisions and initiatives are enacted and enforced. The Managing Director attends all Executive Committee meetings but is not permitted to vote. The Managing Director is responsible for directly overseeing all XDEX Authorities.
Within the XDEX ecosystem, XDEX Oracle Authorities are entities who provide authentication of information and/or data external to the XDEX platform itself. Oracle Authorities provide a 3rd party validation as a means of assurance the information being true and trustworthy.
For example, a law firm may be delegated as an Oracle Authority as a representative to assure the XDEX ecosystem of the legal status and validity of a particular asset.
Also, a bank or broker dealer firm could be delegated as an Oracle Authority to assure the validity of a corporation’s existence and status.
There are many different applications of Oracle Authorities, and the Executive Committee will establish the need and approval of Oracle Authority status through the proposal and voting process.
Validator Nodes are non-authoritative maintainers of the XDEX blockchain.
Validator Nodes are types of witnesses, but do not produce blocks, rather they aggregate transactions and pass them to the Primary Nodes for inclusion into new blocks. Validator Nodes are able to verify transactions. Therefore, they are useful for both increasing the footprint of the XDEX network, as well as enabling connectivity to reach farther without requiring the need to assign authority to the node.
Transaction propagation and network throughput are accelerated with the function of Validator Nodes.
The role of a Primary Node in the XDEX blockchain is similar to that of “miners” on other blockchain protocols. A Primary Node runs a specialized server with software that authenticates on the XDEX blockchain network. The Primary Node collects transactions that are broadcast to the network through connected software application. These transactions are initiated by end users within XDEX-based applications. An XDEX Primary Node bundles the transactions into a block of data, signs the block and broadcasts the block to the network for confirmation and proof.
For each successfully constructed block, a Primary Node mints XDX tokens. The pay at a rate that is defined as part of the XDEX Network Foundation governance. XDEX stakeholders vote to delegate Primary Node roles.
By maintaining the core blockchain, Primary Nodes are essentially the backbone of the XDEX ecosystem.
Primary Node authority is represented with cryptographic keys. This means that each XDEX Primary Node must have registered its public key and will sign each block with its private key during the time of block production. Therefore, as XDEX continues to decentralize operations, it will be possible to hold any one particular Primary Node operator accountable for its actions.