XPrivFi: A Minimal, Private, Fixed-Supply Proof-of-Work Chain
Whitepaper v1.0 — Core protocol overview, design rationale, and system architecture of the XPrivFi Layer-1 blockchain and HexGrid Layer-2 mining system.
Abstract
XPrivFi is a minimal Layer-1 blockchain paired with a structured Layer-2 mining system (HexGrid). The protocol combines predictable emission, RandomHash proof-of-work, round-based mining, and optional future privacy extensions. This whitepaper describes the rationale behind XPrivFi, the Layer-1 design, HexGrid architecture, emission schedule, security assumptions, and future research directions.
Key Ideas
- Minimal Layer-1: Predictable RandomHash chain with fixed emission.
- Round-based Mining: HexGrid coordinates mining rounds every ~7 minutes.
- Deterministic Rewards: 1 XPF per round, 500,000 rounds total.
- Simple & Transparent: No token sale, no premine beyond founder allocation.
- Privacy Roadmap: Optional future CP-Shield shielded transfers.
- Non-contractual Vision: Future research toward RootBaseLayer interoperability.
Layer-1 Overview
XPrivFi Layer-1 uses RandomHash (iPoW), a CPU-oriented hashing algorithm designed to reduce hardware inequality. The chain uses a simple account model, predictable 6-minute target block time, and deterministic on-chain settlement of Layer-2 rewards.
The Layer-1 does not mint block rewards. Instead, all emission is distributed through the Layer-2 HexGrid engine.
HexGrid: Round-Based Mining
HexGrid replaces traditional proof-of-work mining with a structured, deterministic round system:
- 6-minute work phase
- 30-second transparency phase
- 30-second lobby/commit phase
- 1 winner selected per round
Each participant performs the full CPU workload. Identity spam does not increase mining chance, because each identity must complete the entire workload independently. The winner receives a deterministic reward of 1 XPF through an L1 transaction.
Emission Schedule
The emission is fixed:
- Total Supply: 1,000,000 XPF
- Distributed via HexGrid: 500,000 rounds × 1 XPF
- Round Time: ~7 minutes (including phases)
- Distribution Duration: ~6.6 years
No halving schedule is used. Emission is deterministic and transparent.
Future Work & Extensions
The whitepaper outlines CP-Shield, an optional privacy extension enabling shielded transfers. This remains research-stage and is not active at mainnet.
RootBaseLayer (RBL) is an independent experimental settlement and exchange concept. While not part of the XPrivFi protocol, limited interoperability may be explored in future work.
Disclaimer
The XPrivFi whitepaper is an informational document describing the protocol design and future research directions. It does not constitute financial advice, an investment solicitation, or a guarantee of future performance.