Bitcoin as the foundation of DeFi | AMA with DeFiChain

Bitcoin as the foundation of DeFi | AMA with DeFiChain

Despite all the advances made in DeFi, the industry is currently at a crossroads. Since its peak last year, the TVL in DeFi has fallen from around $150 billion to around $50 billion today. The upheaval has coincided with global trends that have impacted industries across the board, but the challenges facing DeFi are unique, especially given how young the sector is. Few deny that DeFi has the potential to transform finance in a way that is fairer for everyone involved. However, the big question is how exactly the potential of DeFi can be realised on sustainable and reliable platforms.

Our next AMA session will feature DeFiChain, a decentralised blockchain forked from Bitcoin that allows users to access a wide range of DeFi services while maintaining the security of its predecessor. The AMA is at 4 p.m. m. UTC on 9 November. And delve into the challenges facing the industry and explore possible ways forward.

A decentralised Bitcoin off-shoot

DeFiChain was originally launched about two years ago by the DeFiChain Foundation. Since its launch, the platform has been fully decentralised and is now controlled by more than 10,000 controller nodes distributed worldwide. The blockchain itself is a fork of the original Bitcoin blockchain, meaning that despite significant changes, the network has retained many of Bitcoin’s defining characteristics. Swelling and considerable protection from evil actors.

Unlike Bitcoin, DeFiChain uses a Proof-of-Stake (POS) consensus mechanism. This is key to the DeFi opportunities the network offers, as POS mitigates some of the downsides associated with Bitcoin, namely long wait times and high fees. In transactions. One of the distinctive features of DeFiChain is that it participates in the tethering of Bitcoin, where it periodically stores its data on the original blockchain. This means that in the event of a 51 per cent attack, the blockchain can revert to its last anchored form and promote network health.

Bitcoin is the ideal launching point for DeFi

By taking the original Bitcoin technology and adding essential features, DeFiChain has created an approach that will provide a way forward for an industry stuck in a rut. Several different issues are at play with DeFi today, not the least: a lack of transparency, security vulnerabilities, flawed platform economics, and a level of complexity that can be overwhelming for newcomers. The DeFiChain approach solves many of these problems by taking the industry back to basics to build something better.

A vibrant ecosystem has been built around the network, offering the best DeFi offers, including staking and farming mechanisms where users can earn returns on the liquidity they provide. DeFiChain also offers ample opportunities for platform builders, given the flexibility that its decentralised governance provides. These opportunities include funding options for projects that have just started.

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