DeFiChain – A Glimpse into the Future of Decentralized Finance (DeFi)
DeFiChain is a fourth-generation blockchain platform that enables the development of fast, intelligent, and transparent decentralized financial applications. This game-changing platform provides users seamless access to decentralized financial services through an easy-to-navigate interface. In this way, DeFiChain can provide what the competition cannot – a reliable alternative form of financial services built on top of Bitcoin’s blockchain.
How DeFiChain Works
The DeFiChain platform approaches decentralized finance in a unique manner that enables for some truly amazing functionality. Unlike most major DeFi projects at this time, it wasn’t built on the Ethereum network. Instead, developers chose to utilize Bitcoin’s massive blockchain to ensure maximum security.
To enable this monumental task, DeFiChain developers utilized a soft fork that enabled transactions to anchor to Bitcoin’s blockchain via Merkel roots. A Merkel root is the hash of all the hashes of all the transactions that are part of a block in a blockchain network. In the DeFiChain ecosystem, transactions anchor every few minutes via this process.
Best of Both Worlds
Crucially, this technical upgrade enabled developers to leverage the unmatched security of Bitcoin with the smart-programmability of next-generation blockchains. Consequently, DeFiChain is ideal for the development and launch of DeFi applications.
For example, the platform is non-turing complete. Non-Turing languages represent structured data, as opposed to describing computation. Non-Turing complete protocols are ideal for development because they provide the most flexibility to programmers. Examples of other non-turing complete protocols include XML, HTML, JSON, YAML, and S-expressions.
Developers prefer non-turing complete command sets because they offer a lower potential for coding errors. In the past, hackers have had success attacking touring complete finance-based smart contracts. The Ethereum DAO hack of 2016 saw hackers make off with over $50million in ETH. DeFiChain eliminates these risks.
The entire DeFi blockchain features a host of features that ensures that only financial transactions are possible. Developers felt this was a vital step in the creation of a robust financial-based blockchain. This decision puts the platform ahead of the competition because it eliminates the congestion issues related to games, casinos, and other non-financial applications clogging the ecosystem. It also allows developers to avoid high transaction fees.
The DeFiChain ecosystem enables cryptocurrency investors to leverage their holdings. Currently, the platform offers a selection of features that make it perfectly suited to meet the demands of the DLT community. Here are some of the top features that make this platform so unique:
DeFiChain users can earn passive revenue lending their crypto out to other DeFi users. The process is simple and you begin to earn profits in just thirty days.
Decentralized Wrapping of Tokens
The concept of wrapped tokens continues to drive innovation in the sector. Wrapped tokens are token representations of an asset. This token type is a favorite of developers primarily because it allows Dapps to process transactions much faster. The added speed comes from the fact that there is no need to compute across multiple blockchains.
Decentralized Pricing Oracles
Decentralized pricing oracles provide critical functionality in the DeFi ecosystem. These off-chain price monitors report on asset prices. Crucially, oracles can launch smart contracts.
Decentralized exchanges (DEXs) are another feature that DeFi supports. Unlike their centralized counterparts, DEXs enable true peer-to-peer trades. In this way, they reduce the risk of attack because there is no longer one organization holding large amounts of cryptocurrency from multiple parties.
Tokenization is one of the fastest areas of development within the blockchain sector. Tokenizing real-world assets provides users with all the benefits of blockchain transactions. Tokenized real estate is a perfect example of an industry that tokenization is set to upend.
Distribution of Dividends
Another critical feature DeFiChain provides is the automation of dividend distributions. This feature is ideal for crowdfunding campaigns because it reduces operating costs. Additionally, it provides users with more confidence through the removal of human intervention.
The Future is DeFi Chain
DeFiChains delivers where other platforms failed. The team behind this project appears to have done their homework because the platform is packed full of developer essentials. In Nov 2020, DeFiChain will be launching tokenization support, its DEX and a liquidity pool. This will bring an exciting new avenue of yield farming to the crypto space. You can expect to see this blockchain become a significant contributor to the space moving forward as its ecosystem expands.