DeFiChain is a platform created to solve all of the DeFi problems in line with governance, security, and scalability.
While you don’t have to reinvent the wheel, solving old problems with a new blockchain may be a clever and pivotal move to propel the growth and scalability of decentralized finance (DeFi). Creating an entirely new platform that caters to DeFi may solve a slew of lingering pain points that both Bitcoin and Ethereum blockchains have including a ridiculously high transaction or gas fees as well as lapses in terms of security and scalability.
Bitcoin, being the pioneer and king of cryptocurrencies, has a fail-proof reputation in terms of security but is however limited in terms of financial transactions. On the other hand, Ethereum has no problem performing simple to complex financial transactions, but it’s, however, lagging behind in terms of gas fees and scalability.And this is where DeFi Chain comes in to save the day. Following the premise that one can’t be everything to everyone, customization may be the key to turn the tables around for DeFi with the anchorage of DeFiChain.
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What is DeFiChain?
DeFiChain is a platform heavily focused on DeFi, created primarily to bridge the gap, solving all of the above problems in line with governance, security, and scalability. DeFiChain solves these issues by building a dedicated network designed primarily for Decentralized Applications (DApps).
DeFi has been created to enable more people to be in complete control of their finances. DeFiChain is mainly created for investors who want to make crypto create limitless ROI for them.
DeFiChain is heavily vested in providing a fast, seamless, simple, and secure network for DeFi functionalities that include decentralized lending, decentralized exchanges, decentralized wrapping of tokens, asset tokenization, and the like.
With the full functionality of DeFiChain funneled towards DeFi, users can expect innovative feature developments, high and reliable transaction throughput, speed, and increased accuracy following Satoshi’s intent since time immemorial around creating a better and reliable form of financial services built on top of the Bitcoin network.
DeFi Chain Founders
The founders of DeFiChain, U-Zyn, and Julian Hosp, first bumped into each other in 2016 over a cup of coffee and while they instantly clicked and become friends, especially as both are passionate about blockchain technology, the two decided to co-found DeFiChain only in 2019.
Currently, Julian Hosp is the CEO and U-Zyn is the Chief Technology Officer (CTO) of DeFiChain.
DFI token
DFI token refers to DeFiChain’s native currency or official token that supports the platform’s many development activities.
The token has a total circulating supply of roughly 600 million with its maximum supply set at 1.2 billion. Meanwhile, the DFI token’s TVL is at $600 million.
DFI token can be used for the following transactions:
- Payment of fees for the transfer of assets
- Payments for DEX transactions
- Staking
- Collateral for loans on DeFi Chain assets
- Voting on governance
DeFi Chain did not hold out any initial coin offering (ICO), public sale, or initial exchange offering (IEO) as 49% of the DFI circulating supply was intended to go to DeFi Chain Foundation with the other 49% of the tokens issued at genesis. To guarantee token decentralization, the foundation isn’t allowed to hold above 49% of the total circulating supply, the remaining tokens were given to well-vetted partners and investors for funding developments.
DeFiChain is non-turing and has only the features and functionalities that support DeFi, without the bells and whistles. It is specifically designed for DeFi alone unlike Bitcoin and Ethereum which seems to be multitasking with varied functionalities making it sluggish and overtly expensive in performance and fees.
With DeFiChain’s complete command set, there is high reliability and reduced risks of coding errors and security breaches that plague both Bitcoin and Ethereum as the network is locked into dApps linked to finance.
The design principles of DeFi Chain are anchored on the following metrics:
High-Performing and Secure
DeFi Chain runs on Bitcoin Core which is ultimately the most secure and robust blockchain ever created and has been operating flawlessly since January 2009. DeFi Chain is currently built on Bitcoin Core v0.18.1 allowing easy and quick integrations with Bitcoin-backed exchanges and applications. DeFi Chain is set to be written in the C++ language and will also be using other languages like Rust.
Non-Turing Full Smart Contracts
DeFi transactions are done via smart contracts. For instance, to avoid borrowers from defaulting on payments, smart contracts will have certain rules or conditions in place with the opcode support. This DeFi opcode works well with Bitcoin Core’s scripting language.
Recipe is the scripting language of decentralized finance pertaining to its role in validating DeFi smart contracts.
Speedy and Scalable
Bitcoin blockchain is almost perfect but one of its Achilles’ heels is speed. The sluggishness of transactions on the network also impacts scalability, especially with the addition of blocks on the network.
DeFiChain running on Bitcoin Core will be having these improvements:
- Block size: 16 MB
- Block time: 30 seconds
With the above improvements, you’ll be seeing a boost in transaction rate to over 2,200 transactions per second (tps) running on recommended computing and bandwidth requirements to ensure seamless DeFi operations.
Immutable via Block Anchoring
A blockchain can be defined as immutable or not with its level of immutability linked to what is dubbed as the 51% attack.
Now, it takes a lot of time and money to pool a significant count of miners to make up a successful 51% attack regarding a blockchain as immutable which means a new blockchain is by default at a disadvantage in relation to the immutability of records. In fact, in order to steer clear of the 51% attacks, new blockchains are trying ways to boost their immutability score.
One example is when networks would be exclusive to those stakers who are particularly verified by founders, which renders the chain permissioned rather than permissionless; so to speak. This provides an extra layer of protection to the network.
Overall, the DeFiChain forges to maintain immutability and the integrity of decentralization. To increase DeFiChain’s immutability, it will be attaching its block to the Bitcoin blockchain in every couple of blocks which will help safeguard the decentralized nature of DeFiChain.
Proof-of-Work Consensus Mechanism
The Proof-of-Work (PoW) mechanism used in Bitcoin Core utilizes the staking node’s ID hashing for creating blocks. Unique to DeFiChain, the network’s PoW can run smoothly without the need to pay for incredibly fast bandwidth connections and high-end servers.
With that being said, DeFiChain enables a speedy and less complicated decentralization of the infrastructure and mode ownership.
On Tackling Speed
Decentralized blockchains have no main governing system or middle man and only individual computers around the world can protect network security. With a Proof-of-Work (PoW) mining mechanism, the network is highly secured but could take a toll on transaction time or speed.
For instance, Bitcoin spends an average of 10 minutes verifying roughly 2800 transactions while Ethereum has a quicker block time of 13 seconds. Overall, both transaction speeds are considerably slow to facilitate seamless online payments or transactions.
With DeFiChain, the network boasts of a Proof-of-Stake (PoS) mining mechanism, which is incredibly more energy efficient compared to PoW. To become a master node, the nodes are required to make a deposit of at least 20,000 DFI tokens.
On Tackling Security
DeFiChain resorts to the use of a non-Turing programming language for smart contracts to enhance the security of the chain. But, it’s not just DeFiChain, as Ziliqa was the first one to use the programming language.
Further, the main selling point of DeFiChain is that its robust security is built upon the Bitcoin network itself. And if you know the king of cryptocurrency, Bitcoin has never had a single security breach or lapse since it was rolled out in 2009 by Satoshi Nakamoto.
DeFiChain cleverly takes crypto snapshots of the chain’s present state and then backs that up on the Bitcoin network which is coined as anchoring. The DeFiChain block hashes are published to the Bitcoin network which facilitates secure block anchoring and public audit.
With that in mind, the DeFiChain blocks are rendered immutable, transparent, and completely secured as they can be easily verified based on the recent records stored on the Bitcoin network.
DeFiChain to Change the Face and Pace of the Blockchain Space
DeFiChain has found a way to shake ground in the blockchain and DeFi space. It also creates new investments such as passive income, making it attractive for investors.
From all angles, DeFiChain is perceived as disruptive and impressive as it pushes the system forwards toward creating more investment pathways and benefits for users. Watch out as this new blockchain-on-the-block is set to change the face and pace of the blockchain space.
