Abstract
HCX is the native digital asset of HC NET, a next-generation Layer 1 blockchain designed to power enterprise-grade digital asset infrastructure and services. Functioning as the core medium of value exchange and utility within the HC Net ecosystem, HCX facilitates high-speed, low-cost, and secure transactions across a distributed yet highly efficient blockchain architecture. The network is powered by blockchain technology, which leverages a hybrid consensus model and modular smart contract integration to ensure scalability, interoperability, and regulatory compliance. Designed to meet the complex demands of financial institutions, governments, and large-scale enterprises, HC Net incorporates enterprise-grade security features, robust identity management, and permissioned access control for data integrity and compliance. The HCX asset also underpins tokenization, asset settlement, cross-border payments, and decentralized application deployment within the ecosystem. This whitepaper outlines the architecture, functionalities, use cases, and strategic vision for HCX on HC Net, demonstrating its potential to revolutionize digital finance and enterprise blockchain adoption.
Introduction to HCX: The Native Asset of HC NET
HCX is the native digital asset on the HC NET, Layer 1 blockchain network. In the context of HC NET, an asset refers to any item of value recorded on the ledger. Similar to digital currencies like Bitcoin, one HCX serves as a unit of digital currency, enabling fast, secure, and cost-effective global transactions, as well as seamless currency exchanges.
At its most granular level, HCX can be divided into smaller units called JOTs. One JOT is equivalent to one ten-millionth (¹⁄₁₀,₀₀₀,₀₀₀) of an HCX, allowing for microtransactions and precise value transfers within the ecosystem.
The HC NET platform incorporates all the core functionalities of blockchain technology, including a decentralized, shared public ledger and distributed database architecture. Within this infrastructure, HCX serves two key purposes:
Network Protection and Anti-Spam Functionality
To deter malicious actors from overwhelming the network with unnecessary transactions, each transaction on HC NET incurs a small fee of 0.0001 HCX. This anti-spam mechanism ensures that network resources are used efficiently and securely. Additionally, every account on the network must maintain a minimum balance of 20 HCX, which helps prevent spam accounts and contributes to the overall stability and integrity of the platform.
Multi-Currency Transaction Facilitation
HCX can also act as a bridge asset in multi-currency transactions. In a situation where there is no direct market between two currencies, HCX may facilitate trades by serving as an intermediary, provided there are active, liquid markets between HCX and each of the involved currencies. This bridging capability enhances cross-border and cross-currency transaction efficiency.
Mission and Vision
Empowering Global Value Exchange with Real-Time, Scalable, and Cost-Efficient Settlements
HCX, the native digital asset on HC NET, envisions a future where money moves as seamlessly, instantly, and at near-zero cost. Our mission is to redefine the global financial infrastructure by enabling banks, currency exchanges, payment providers, corporations, and merchants to operate with unprecedented efficiency and freedom.
HCX eliminates the friction of traditional financial systems-delivering real-time settlements without the dependency on pre-funded accounts or intermediaries. Whether it’s a cross-border transfer, corporate settlement, e-commerce payment, or remittance transaction, HCX ensures zero turnaround time and maximum liquidity access across the ecosystem.
As the digital backbone of HC NET, HCX supports over 3,000 concurrent transactions per second and scales up to 75,000 TPS in test environments, surpassing the capabilities of legacy payment networks. From facilitating remittances and trade finance to optimizing forex deals and commercial payments, HCX is designed to power the digital economy of tomorrow.
We envision a world where financial institutions, businesses, and individuals can interact on a unified, decentralized platform - instantaneously, affordably, and without borders.
HCX is not just a digital currency. It’s the core enabler of a next-generation financial ecosystem built for speed, scale, and inclusion.
Architectural Design
Network Infrastructure
The HC NET infrastructure is purposely built to support the HCX digital asset with enterprise-grade performance, security, and scalability. Designed for high-throughput environments, HC NET can handle large transaction volumes with near-instant finality while maintaining integrity across a globally distributed node network.
The system integrates modular components for enhanced fault tolerance, efficient data management, and seamless deployment of financial applications. A decentralized ledger, based on CouchDB, supports dynamic data replication and mobile node hosting, enabling real-time financial services across borders.
Network Diagram
System Architecture Overview
The system architecture of HC NET comprises multiple layers working together to process, validate, and store transactions involving the HCX digital asset. The architecture supports:
- Application Layer (wallets, exchanges, merchant APIs)
- Consensus Layer (hybrid consensus algorithms)
- Data Layer (CouchDB + distributed ledger storage)
- Security Layer (quantum-resistant cryptographic functions)
This layered design ensures modularity, upgradability, and interoperability with external systems.
System Architecture Diagram
3. Multi-Layer Consensus Mechanism
HC NET employs a multi-layer consensus architecture that blends speed, decentralization, and fault tolerance, supporting high-frequency financial applications and digital asset transfers.
Primary Layer: Proof of History (PoH)
PoH introduces a cryptographically verifiable timestamping mechanism, optimizing the order of transactions and reducing latency across nodes. This allows the network to prioritize throughput without increasing consensus overhead.
Hash Function Sequence:
sql
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Hᵢ = H(Hᵢ₋₁ || timestampᵢ)
Verification Complexity:
O(n) for n sequential transactions.
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4. Secondary Layer: Delegated Proof of Stake (DPoS)
HC NET integrates DPoS for democratic validator selection. Token holders vote to elect delegates responsible for block production and transaction validation.
Validator Selection Probability:
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P(Vᵢ) = Sᵢ / ∑ⱼSⱼ
Expected Number of Blocks:
mathematica
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E[Bᵢ] = P(Vᵢ) × B
Where:
- Sᵢ = stake of validator i
- ∑ⱼSⱼ = total network stake
- B = total blocks per cycle
5. Tertiary Layer: Asynchronous Byzantine Fault Tolerance (aBFT)
To ensure trustless consensus in adverse network conditions, HC NET uses aBFT, which allows consensus without synchronized clocks and tolerates malicious actors.
Fault Tolerance Condition:
nginx
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f < n / 3
Finalization Time:
ini
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T_f = O(log n)
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6. Currency Exchange Integration
Currency exchanges connected to HC NET benefit from near-zero latency settlement and efficient liquidity management using HCX. The architecture allows real-time fund transfers between fiat and digital assets, helping exchanges:
- Optimize liquidity pools
- Discover and manage new remittance corridors
- Reduce overhead expenses by eliminating the need for multiple fiat holdings
7. Data Flow Diagram (DFD)
Level 0 DFD: HCX Transaction Flow
- User Input: Transaction initiated via wallet, app, or API
- Validation: Routed through PoH → DPoS → aBFT layers
- Ledger Update: Data written to distributed CouchDB
- Confirmation: Acknowledgment sent to the user interface in 2–4 seconds
Quantum-Resistant Cryptographic Algorithms
The HC NET blockchain, which powers the HCX digital asset, integrates quantum-resistant cryptographic protocols to safeguard the network against the future threat of quantum computing. By adopting Dilithium and Kyber, two leading algorithms from the CRYSTALS suite, HC NET establishes a secure and future-proof infrastructure for transaction integrity, key exchange, and network-wide data confidentiality.
1. Dilithium Digital Signatures
Dilithium is a post-quantum digital signature algorithm recognized for its strong cryptographic guarantees and operational efficiency. Integrated into HC NET, Dilithium ensures that all transaction signatures and validation mechanisms remain secure, even in a post-quantum world.
Mathematical Basis:
Signature Generation:
Let m be the transaction data and sk the private signing key. The signature σ is computed as:
mathematica
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σ = Sign(m, sk)
Verification:
The verification process uses the public key pk to check the integrity of the signature:
graphql
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Verify(m, σ, pk) = True / False
This mechanism ensures that only legitimate, authorized transactions are committed to the ledger.
2. Kyber for Secure Key Exchange
Kyber is a quantum-resistant Key Encapsulation Mechanism (KEM) used in HC NET for establishing secure communication channels between nodes, wallets, and applications. It allows HCX users and validators to exchange encrypted information with confidence that it cannot be compromised by quantum attacks.
Mathematical Basis:
Key Encapsulation:
A shared symmetric key k is established during a secure session:
ini
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k = Encapsulate(pk)
k = Decapsulate(sk, c)
Where:
- pk is the recipient’s public key
- sk is the corresponding private key
- c is the ciphertext carrying the encapsulated key
Encryption:
Using the shared key k, a message m is encrypted as:
ini
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c = Encrypt(m, k)
Decryption:
To retrieve the original message:
ini
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m = Decrypt(c, k)
This exchange allows encrypted transaction payloads, inter-node messaging, and user communications to remain secure and tamper-proof.
3. Future-Ready Security Model
Together, Dilithium and Kyber provide the HC NET blockchain with a resilient, hybrid cryptographic architecture that is immune to both classical and quantum attacks. This ensures:
- Long-term data security
- Safe key lifecycle management
- Tamper-proof digital asset transfers
- Trustless inter-party communication
The quantum-resilient design of HC NET reinforces HCX’s position as a next-generation financial instrument, capable of supporting secure transactions for governments, enterprises, PSPs, and retail users-even in the coming age of quantum computing.
Transacting Using HCX
The HC NET platform is open and free to use. However, to trade on the live network, users must hold HCX or other supported native cryptocurrencies to cover base transaction fees. These fees are minimal, making transactions on HC NET highly cost-efficient.
The HC Network will hold 100 billion HCX in its root account at launch. A portion of this supply will be distributed to various cryptocurrency exchanges across different geographies, typically starting with an allocation of 1 million HCX per exchange. For example, exchanges like PayBito India, PayBito US, and Kraken may receive these initial allocations.
It is important to note that, like all digital assets, HCX carries inherent market risks, including the potential for complete loss of value.
When a transaction is initiated on HC NET using HCX, the required HCX is drawn from the sender’s balance, and the transaction fee, denominated in JOTs (the smallest unit of HCX), is paid to the HC NET platform. The transaction is then routed through one of the participating exchanges, such as PayBitoPro India or PayBitoPro US, where trading activity takes place.
The market value of HCX is determined by supply and demand dynamics within these exchanges:
- When most traders take long positions, holding onto HCX, the available supply of HCX on the exchange decreases, leading to a potential increase in its value.
- Conversely, when more traders take short positions, actively selling HCX, the supply increases, which can lead to a reduction in value.
Ultimately, the price of HCX is driven by market mechanisms and is influenced by trading behavior, liquidity reserves on exchanges, and broader investor sentiment.
HCX Distribution
Let us analyze the use of HCX in organizational applications. HCX can be utilized by banks, currency exchanges, corporate houses, wallet providers, payment service providers, and e-commerce merchants.
Looking deeper, HCX enables banks to conduct cross-border settlements in real time at lower costs, eliminating the need to lock funds in pre-funded Nostro accounts. Currency exchanges can manage liquidity more efficiently, settle funds instantly for their customers, and discover new remittance corridors.
Corporate entities can benefit from HCX, while PSPs (Payment Service Providers) can operate on the network without requiring an acquiring bank. For e-commerce merchants, HCX significantly reduces the cost of receiving payments and enables instant fund transfers.
Why Choose HCX as an Alternative Digital Crypto?
- Real-Time Settlement
HCX settles payments within 2-4 seconds in an environment with over 1,000 nodes.
- Scalable
HCX can handle 3,000 concurrent transactions (transactions per second) and over 100 million transactions per day. In a test environment, with the implementation of SegWit, the network achieved scalability of up to 75,000 transactions per second, exceeding the throughput of current payment networks such as Visa. - Wide Applications
HC products operating on HC NET are used for remittances, corporate payments, trade finance, commerce, and forex deals. - Wide Acceptance
HC products are used by global banks, currency exchanges, payment service providers, corporate houses, and e-commerce merchants.
Use Cases Examples
- Cross-Border Payments
HCX enables seamless and cost-effective cross-border transactions. Financial institutions use HCX on HC NET to settle international payments in real time, eliminating the delays and high fees associated with traditional banking systems and pre-funded Nostro accounts.
- Currency Exchanges
With HCX, currency exchanges manage liquidity efficiently, settle funds in real time for their customers, and discover new remittance corridors. HCX acts as a bridge asset, reducing dependency on multiple fiat reserves and improving capital efficiency.
- Forex Settlement and Liquidity Management
Currency exchanges leverage HCX for efficient liquidity management and instant forex settlements. By using HCX as a bridge asset, institutions can access multiple currency corridors without maintaining liquidity in each local currency.
- Corporate Treasury and B2B Payments
Enterprises use HCX to streamline treasury operations and automate large-scale B2B payments. With HC NET’s scalability and real-time settlement capabilities, corporate houses can reduce payment processing time and improve cash flow visibility.
- E-commerce and Retail Payments
E-commerce platforms accept HCX to reduce transaction costs and accelerate settlement times. Merchants receive payments instantly, with minimal fees, enhancing customer satisfaction and operational efficiency.
- Remittances
Remittance service providers use HCX to deliver faster, more affordable international transfers. The digital asset serves as an intermediary, ensuring quick fund movement across borders while avoiding traditional banking bottlenecks.
- Microtransactions and Subscription Models
HCX is ideal for handling microtransactions and recurring payments in digital services. Whether it's in gaming, media streaming, or SaaS platforms, HCX enables frictionless, low-cost transactions at scale.
- Tokenized Asset Transfers
HCX on HC NET can facilitate the transfer and settlement of tokenized assets, including stablecoins and securities. This ensures transparency, traceability, and efficiency in digital asset trading.
- Payment Service Provider (PSP) Operations
PSPs integrate HCX to offer faster settlement services without needing an acquiring bank. This lowers infrastructure costs and expands access to financial services in underbanked regions.
Technology Stack Overview
HCX leverages a robust, future-proof technology stack built for high-performance finance, scalable enterprise adoption, and resilience against quantum computing threats. The stack ensures secure real-time settlements, liquidity management, and decentralized financial services across global networks.
Frontend Technology
- React.js & Angular.js
For building rich, dynamic, and responsive user interfaces across HCX wallets, dashboards, and applications. - Redux & Tailwind CSS / Material-UI
Redux handles state management efficiently, ensuring smooth user experiences, while Tailwind and Material-UI provide a modern, accessible design system for a cohesive UI.
Backend Technology
- Go (Golang) & Node.js
Used for developing scalable APIs and microservices that power real-time transaction processing, user authentication, and communication across nodes. - Quantum-Resistant Cryptography
Core backend processes are secured using: - Dilithium for digital signatures
- Kyber for key encapsulation and secure exchange
These post-quantum algorithms ensure secure communication and future resilience.
Blockchain Platform – HC NET
- HC NET Distributed Ledger
Powered by CouchDB, a fault-tolerant and efficient distributed database. It supports: - Real-time data replication
- Low-latency access for mobile and edge nodes
- Seamless scalability across thousands of validators
- Smart Contract Support
The HC NET framework is built with modular support for enterprise logic, enabling programmable remittance, compliance automation, and settlement rules.
Security and Quantum Resistance
- Post-Quantum Cryptography Stack
- Dilithium (for signing and verification)
- Kyber (for encryption and key exchange) Integrated at both the protocol and application layers to protect all cryptographic operations from quantum attacks.
- Multi-Layer Consensus Mechanism
Combines Delegated Proof of Stake (DPoS), Asynchronous BFT, and Proof of History to ensure speed, security, and resistance to malicious actors.
Integration and Ecosystem Compatibility
- RESTful APIs & WebSockets
Seamless third-party integrations and data streaming for wallets, PSPs, e-commerce platforms, and currency exchanges. - Cross-Network Compatibility
HC NET supports token interoperability, enabling HCX to bridge traditional finance (TradFi) with DeFi and Web3 ecosystems.
Conclusion
HCX, built on the HC NET Layer 1 blockchain, integrates next-generation technology to deliver a digital asset platform that is secure, scalable, and future-ready. As a Layer 1 solution, HC NET provides the foundational infrastructure required for native transaction processing, decentralized validation, and seamless protocol-level upgrades, without dependency on external chains.
By adopting quantum-resistant cryptographic algorithms such as Dilithium and Kyber, and implementing a multi-layered consensus framework, HCX ensures robust security and high throughput for real-time, cross-border transactions. The integration of CouchDB as the distributed ledger enhances data management, offering low-latency access and supporting mobile node hosting for broader accessibility and scalability.
With a modular architecture designed for performance and interoperability, and a growing set of use cases-including remittances, corporate payments, forex settlements, and e-commerce, HCX on HC NET Layer 1 blockchain is positioned to play a critical role in the future of digital finance.
